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Finest Emirates in UAE For Branch Office Setup

By Sakshi Srivastava - 19 Apr 2022 Last Updated: 20 Apr 2022
Finest Emirates in UAE For Branch Office Setup

Table of Contents 

  1. 1. Important factors While Selecting an Emirate for Branch Office Setup
  2. 2. Why Establish a Branch Office in Dubai?
  3. 3. Policy for Choosing Branch Offices in Dubai
  4. 4. How to Build a Branch Office in Dubai?
  5. 5. Conclusion

The United Arab Emirates is one of the world's most popular centers. Because of the country's open and strong economic structure, many businessmen have taken their companies to extremely profitable positions.

Opening a branch office in the UAE will increase the value of your services/products because the country is home to thousands of your existing and potential clients.

The United Arab Emirates is made up of seven emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Ras Al Khaimah, Umm Al-Quwain, and Fujairah. Each emirate can be thought of as a state in its own right. Each of them is best suited for a specific business.

Now you must consider what the consequences will be if you do so. In this blog, we'll explain why business owners decide to open a branch office in the UAE.

Important factors While Selecting an Emirate for Branch Office Setup

Here are some factors which should be considered before choosing an Emirates for branch office setup:-

Learn More About the Target Market

A branch office handles transaction-based business operations in close proximity to the parent company. A branch list includes activities such as company acquisitions, research and growth, market analysis, promotion and advertisement, and so on. By carrying out these tasks, the branch office gains an understanding of the target market and potential clients. The collection of these data is a necessary step in the expansion process and provides better clarity as to whether or not one can enter the specified sector.

Various Location Alternatives

The UAE government has taken advantage of the flexibility of location to encourage business owners to establish a branch office. A branch office can be established on the Mainland, in a Free Zone, or offshore in Dubai. Before you choose one, you should have a clear understanding of all possible options and select the best one based on your business needs. It should be remembered that, as you are aware, location has a significant impact on a company's performance, target market, and presence. When it comes to execution, you don't need to be tense. To open a branch office in Dubai, you can quickly look for office space solutions in a designated area commercial complex and conduct your business operations.

Full Ownership

Another reason why business owners want to establish a branch in Dubai is to retain complete ownership. A branch corporation is not a separate entity from its founders, but rather an extension. A branch office framework does not require a local sponsor but does require a local service agent to provide government-related business services and does not have any ownership.

Develop Relationships with Other Businesses

Since the branch office functions as an extension, it allows the parent company to form a corporate partnership with other dominant relevant companies in the area. It assists the parent company in defining the appropriate business stakeholders and collaborators while maintaining a focus on core business activities.

As a result, you can see that a branch company generates a profit for the parent company and thus contributes to increased revenue. By establishing a branch company, you can target a variety of markets. Each of these can help you focus on a new group of customers, potentially opening up more possibilities for growth. Now, if not guided, the implementation phase of integrating a branch office could be difficult. One of the smart options for business investors is to approach and collaborate with business clients who can guide them at every step of the way.

Why Establish a Branch Office in Dubai?

International companies can establish a formal presence in the UAE by establishing a Dubai branch office. Unlike a local limited liability company, a branch office with 100 percent non-UAE national ownership can have the same legal recognition as its parent company and conduct business under its parent company's name.

The following are the most important aspects of establishing a business in the UAE:

  • Branch offices are considered full-fledged businesses.

  • Branch offices are permitted to conduct contracts or other activities as defined in their license.

  • Foreign entities can establish wholly owned branches in the UAE, but they must employ a UAE national as a service agent.'

The local service provider must be a UAE national or a business wholly owned by UAE nationals as specified in an agency agreement signed in front of a local notary.

Policy for Choosing Branch Offices in Dubai

Many multinational corporations and corporations have already tested the waters by establishing a branch office in Dubai. Following a few guidelines will only make the process

Consider the following factors when deciding to open a branch in Dubai:

  • Certain international company activities would be required of the branch office.

  • The parent company must apply for the necessary licenses with the Dubai authorities more realistic and assist you in deciding on a better business setup. The branch office is not treated as a separate legal entity from the parent company.

  • The parent company will be liable for the Dubai branch office's obligations and debts.

  • In terms of taxes, the branch office will be taxed on revenues received in the UAE.

  • The parent company's name must be used for the branch office in Dubai.

How to Build a Branch Office in Dubai?

The steps below can be taken to obtain a license for establishing a branch office in Dubai-

  • To obtain a permit, the foreign company must file an application with the Ministry of Economy and Commerce. Along with the application, the organization must submit a Service Agent Agreement with a 100% UAE-owned company or a UAE citizen.

  • The application would then be forwarded by the Ministry of Economy and Commerce to the Department of Economics for approval by the local government.

  • The request will be forwarded to the Federal Committee of International Companies for Economic Department approval. At this point, the application will include a note from the Ministry of Economics and Commerce outlining the activities that the branch office will be permitted to conduct in the Emirate.

  • Following approval from the Federal Foreign Companies Committee, the Ministry of Economy and Commerce will issue the necessary Ministerial license. The above-mentioned permit specifies the activities to be carried out by the foreign branch office.

  • The branch office is then registered in the Commercial Registry of the Department of Economic Affairs. The appropriate license is issued here.

  • After the Economic Department issues the necessary license, the branch office is registered in the Ministry of Economics and Commerce Foreign Companies Registry.

  • The ultimate goal is to register the branch office with the Chamber of Commerce and Industry in Dubai.

Conclusion

Our Dubai branch setup services include a structured package derived from years of professional practice and collaboration with public authorities, allowing international businesses end-to-end administrative solutions. Our pan-UAE presence enables you to quickly open a branch office in Dubai or any other emirate.

Our experts at Dhanguard can assist companies in establishing offices in Dubai and the rest of the UAE. Contact us if you have any minor or major questions about opening a branch in Dubai. We will gladly like to assist you in every manner.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

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