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Branch Office Setup in Dubai

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.

Different Forms of Branch Offices

Corporate Shareholder

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.
Establishing Companies

Branch Company

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.
Standard of Living

Representative Office

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.
Trademark registration

Subsidiary

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.

How to Set Up Your Branch Office

This process can get quite tedious for individuals to carry out by themselves. Our experienced team helps foreign investors with company formation in Dubai.
Success

Selecting a local
service representative

Success

Obtaining a trade name reservation

Success

Application Submission

Success

Authorization from the
Ministry of Economy

Success

Permission from UAE Federal
Foreign Companies Committee

Success

Procurement of the license from
DED accomplishing
administrative responsibilities

Success

Enrollment with the Ministry of
Economic and Commerce
Companies Register and the
Chamber of Commerce and Industry

Advantages & Merits

Global Market Infrastructure

Increased Global Reach

Dubai has evolved into a worldwide economic hub. There is no better location to grow your business and reach a global audience. Accessing international consumers through a branch division here is far more economically efficient because no share capital is required.
Experienced Professionals

Total Ownership

Establishing a new onshore business in Dubai limits your complete proprietorship of the firm. You will require a local sponsor as a 51% stakeholder in your mainland firm. You can, however, own a branch firm without needing sponsorship. You simply need a local representative who is not a shareholder. They can execute management duties but do not influence your company's decision-making or other activities.
Budget Friendly

Accounting & Analysis

As the company grows, the auditing becomes tougher and more complex. In the case of the office branches, the finance departments document all the transactions between the central organization and them. This tracking assists in the final balanced scorecards.
Zero Tax

Tax-free Status

Unlike other countries, the UAE levies no taxation on the income of entrepreneurs running businesses here. This is one of the major attractions of working here, besides the endless opportunities for growth.
Contact Freezoner to build and establish your own UAE company.
Request a free consultation and start a conversation!!
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Freezoner is the UAE’s award-winning Business setup consultancy company that helps investors establish their business in the most cost-effective & efficient way

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(+971) 4 244 2279

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info@freezoner.net

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Office 2001, 20th Floor, Tower B, Business Central Towers “BCT”, Sheikh Zayed Road, Media City, Dubai 191412

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