Dubai holds a great pull for investors due to its geographical position, tax-free status, and unlimited prospects. The city provides an ideal environment for international enterprises to expand. Setting up a new company on the UAE mainland is one way for foreign business owners to establish themselves here. However, this comes with restrictions and limitations regarding the company ownership and holding. As a foreign investor, if you want to initiate your business in Dubai, keeping 100% control and possession, opening a branch office is another way. If you already have a company in the UAE, you can also open a branch office keeping its 100% holding. The branch office can carry out all the business functions the primary organization is authorized to carry out. The parent firm, whether or not located in the UAE, shall be held liable for all branch office business operations. At Freezoner.net
, we help entrepreneurs with business setup services in the UAE
. Contact us whether you want a free zone company formation
, a branch formation, or a mainland business setup
It is a corporate body that owns a stake in another LLC. This allows one stockholder to hold a shareholding in the business and also acquire the license. The parent organization might be based in Dubai or elsewhere in the world. Multiple corporate owners are also feasible.
As opposed to the first type, which is a corporate shareholder, this option limits the ownership to the parent organization only. There cannot be any partners or multiple owners in the case of a branch company. However, the primary company can exist either in UAE or anywhere else. The corporate charter for the branch will remain the same as the parent firm. There is no requirement for share capital to open a branch company.
They are different from other branch offices because they cannot participate in commercial and servicing operations. They can exclusively conduct marketing and advertising activities. A branch office, on the other hand, can perform both functions.
The core organization is always held accountable for its branches and divisions, while subsidiaries are not. They are recognized as distinct legal bodies with full accountability for their activities and commercial operations. A subsidiary administration should be situated in the UAE.
This process can get quite tedious for individuals to carry out by themselves. Our experienced team helps foreign investors with company formation in Dubai