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How to Open a Branch Office in UAE Mainland or Free Zone?

By Sakshi Srivastava - 11 Mar 2022 Last Updated: 11 Mar 2022
How to Open a Branch Office in UAE Mainland or Free Zone?

Table of Contents 

  1. 1. Steps Involved in Opening a Branch Office in Dubai
  2. 2. How to Open a Freezone or Mainland Company Branch Office in Dubai?
  3. 3. Benefits of Opening a Branch Office in Dubai
  4. 4. Documents Required for Opening a Branch Office in Dubai
  5. 5. Conclusion

The advantages of establishing a branch office in Dubai are numerous. It assists foreign investors and Free Zone enterprises in expanding into the local UAE market by establishing a branch in Dubai Mainland.

Investors from all over the world prefer to create a branch firm in the UAE to help them penetrate the local market. To access into the UAE and the Middle East area, large corporations with a global presence pick the UAE as the location for their branch office. With this Blog Dhanguard will inform you about opening a Branch Office in UAE Mainland or Freezone

Steps Involved in Opening a Branch Office in Dubai

There are a several procedures to setting up a branch office in Dubai for a Free Zone or Mainland company. The rules and steps for opening a foreign company's branch differ slightly.

Steps are as follows

Fill out an Application for a Branch Office.

By preparing the necessary paperwork, filling out the application form, and submitting it to the Dubai Economy, one can open a branch office in Dubai. It's vital to remember that having a local service agent is a requirement for a branch office. Dhanguard will examine all of your company requirements to help you locate the ideal local service agent for your branch office.

Obtain the Permits you Need

For some company activities like as healthcare, electronics (mobile) trading, education, and others, a few permits are required to open a branch office in Dubai. The application must be approved by the Ministry of Economy, which will analyse the requirements and nature of company activity.

The process establishing a foreign firm branch includes further certification from the UAE Embassy in the parent company's home country. A clearance from the UAE's Ministry of Foreign Affairs is also required.

Obtain the Ministry of Economy's License.

The branch office license will be issued after the needed documents are submitted to the Ministry of Economy and the required money is paid.

Become a member of the Chamber of Commerce.

Register the company with the UAE Chamber of Commerce once the branch office license has been received.

How to Open a Freezone or Mainland Company Branch Office in Dubai?

Board of Directors' Approval

A resolution indicating the opening of a new branch office must be passed by the board of directors in order to open a branch office. The Board of Directors has the authority to choose one director to establish up the branch company and monitor its activities.

Establishing a Branch Office

The corporation can proceed with the registration of the branch once the board resolution is approved. To get a company license and register a branch on Dubai's mainland, the Company can follow the steps outlined above. Dhanguard will provide end-to-end business support services to help you register your company's branch office in Dubai in the most efficient manner possible.

Benefits of Opening a Branch Office in Dubai

Following are the benefit to open a branch office in Dubai

Obtain 100% Foreign Ownership

The branch office is treated as an extension of the parent firm rather than a separate legal entity. As a result, you have 100 percent ownership of the branch office and can perform the same business as the main firm.

Rent an Office in the UAE

The branch office can be located anywhere in Dubai, depending on the needs of the company's shareholders. To keep administrative costs down, the company might hire office space on Dubai Mainland for a lesser rate. Organizations who do not require office space in the city centre can rent offices at a moderate cost anywhere in the UAE.

Trade in the UAE's Mainland

Setting up a branch office on Dubai's mainland allows the corporation to actively deal in the UAE's local marketplaces. A Branch Office allows a company to deal directly in Dubai's mainland without the need for a local distributor or agent.

Benefits from Taxes

The UAE has no corporate or income tax and businesses can take use of this tax environment to the most extent possible. The corporation can take advantage of the Double Taxation Avoidance Agreement (DTAA) and save tax in its home country by establishing a branch office in Dubai.

Requirement for Audit Reports

It's time-consuming to audit a huge corporation with daily financial transactions. The establishment of a branch office will assist in the legal tracking of all transactions between the branch and the parent firm.

Minimal Administrative Expenses

Opening a new branch is less expensive than establishing a new corporation in many nations.

In the United Arab Emirates, branch offices are not required to keep audit reports. Taking a tiny office for your Dubai branch would also keep administrative and operational costs minimal.

Low-Cost Route to New Markets

Setting up a branch office is a simple approach to get into a new market. The cost of running a branch office in Dubai is less than the cost of starting a new business.

Documents Required for Opening a Branch Office in Dubai

Following are the documents required

  • Brand name Parent Company Documents - Memorandum of Association, Articles of Association, Certificate of Incorporation, and Certificate of Good Standing Board Resolution for establishing a branch office in Dubai Approval Certificate
  • General Manager's Power of Attorney General Manager's Passport Copy
  • The parent company's financial accounts for the previous two years have been audited.
  • List of key business and trade operations that will take place in Dubai Local Service Agent Agreements and copies of identification papers

Conclusion

Opening a branch office appears to be a viable alternative for free zone or mainland enterprises looking to aggressively expand into the UAE local market and explore new business prospects. Talk to Dhanguard expert adviser's right immediately if you want to learn more about creating a branch office in Dubai.

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.

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

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