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The United Arab Emirates (UAE) is one of the greatest countries in the world to do business because of its low tax rates, low import levies, free trade agreements, competitive economy, strategic position, state-of-the-art infrastructure, and many other advantages. As a result, the UAE has a plethora of commercial opportunities. So, if you want to reward the entrepreneur inside you with the finest of the best, conducting business in the UAE is without a doubt the ideal option. Stop pondering and take action right now!

Dubai has always been a business center, and Sharjah, which is directly connected to it, offers a wealth of options. The rich commercial grounds are currently increasing faster in Abu Dhabi and Ras al Khaima, thanks to the government's ongoing efforts.

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Branch of UAE Based Company Formation in Dubai, UAE


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The business ground is equally rich whether you are a UAE national or an ex-pat living here. Yes, there are some grants exclusively for nationals, but it doesn't matter if your business ideas in Dubai are something that has a strong market in the UAE. Although the rules and business climate in general favor startups, particular areas may have higher setup and licensing fees. As a result, it's a good idea to look for business ideas that are in high demand and don't require a lot of setup or licensing expenses. Dubai is a fantastic area to build your business because of its favorable tax environment, educated workforce, access to financial and natural resources, and trading opportunities. You may be able to contact more than 1 billion prospective clients thanks to its central location and proximity to countries in the Middle East, Asia, Eastern Europe, and Africa. You can enjoy a higher level of profitability with no company tax and a cheaper cost of living. Thus, we at Dhanguard pioneer at providing you with exemplary services and guidance to help you setting up your Branch. Do exempt few minutes to read the below mentioned information which has been carefully devised by our Experts to provide you up to the mark services.

There are 3 heads under which you can open and operate your company in the United Arab Emirates and thereby start its respective branches as well. Those heads are-

Mainland Company

Freezone Company

How can you open a Mainland/Freezone Company Branch in the United Arab Emirates? Steps Explained!

Select the most appropriate business jurisdiction

The foreign company must choose the appropriate business jurisdiction – Mainland, Free Zone, or Offshore – where the Branch Office will be established.

There is a legal necessity for selecting a Local Service Agent to liaise the administrative works with the Government Authorities when establishing a business on the mainland in the UAE.

Determine who the local service agent is

For an annual fee, the Local Service Agent is assigned for one year. The contract is renewable each year, with the option to switch agents if there is a disagreement.

There is no necessity to nominate a Local Sponsor in Free Zones or Offshore, and the Manager/Director will be the authorized person to handle the Branch Office's commercial activities.

Obtain a Trade Name

The Parent Company in the Home Country must have the same name as the Branch Office.

In the case of Mainland Company, an application must be presented to the Department of Economic Development (DED) to have the name approved. If the investor chooses these jurisdictions for the establishment, an application must be submitted to the corresponding Free Zone/Offshore authorities.

Government of the United Arab Emirates attestation of documents

The UAE embassy in the home country must certify the firm paperwork, which must also be counter-attested by the UAE Ministry of Foreign Affairs. The following documents must be certified in their home country by UAE authorities and then counter-attested in the UAE.

  • Certificate of incorporation/ Memorandum of Association (MOA), Article of Association (AOA)
  • Board Resolution stating the formation of a Branch Office/Subsidiary
  • Parent Company Good Standing Certificate
  • Power of Attorney in Favour of General Manager giving him the rights to open/operate/Management Bank Accounts on behalf of the Parent Company

Obtain a License from the Appropriate Government Agency

along with the supporting documents to the appropriate government authority. Along with the submission of the documents, there is a charge that must be paid to the authorities. The Branch Office License will be provided to the investor when the documents have been assessed.

Ensure that all Administrative Requirements are met

The investor can now apply for a UAE residence visa, open a corporate bank account, appoint a Director/General Manager, hire workers, process immigration cards and labour contracts, increase office space, and conduct business in the UAE.

Prepare a Branch Office Application

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.

The Board of Director’s approval is Required

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.

Registration for Branch Offices

After the board resolution is approved, the company can begin the process of registering the branch. The Company can get its business license and register its branch on Dubai's mainland by following the steps outlined above.

Dhanguard will provide you with end-to-end business support services to help you register your company's Dubai branch office in the most efficient manner possible.

The cost of establishing a branch office in Dubai for a Free Zone Company with a Service License type is around AED 30,000. The branch office's name will be the same as the parent company's, with the suffix 'Branch'. It has the authority to carry out all of the parent company's business operations.

What are the Documents required to open a branch?

  • Each shareholder, director, and manager must complete a Know Your Customer (KYC) form.
  • Copy of each Shareholder's/Director's/valid Manager's passport
  • Company Name Suggestions
  • Registration & Licensing Application
  • The Parent Company's Certificate of Registration
  • Certificate of Incumbency or recent extract from the Commercial Registrar
  • Valid Trade License
  • Original Certificate of good standing of the Parent Company
  • The Parent Company's Memorandum and Articles of Association
  • Proof of the parent company's physical address
  • Shareholder Resolution or Board Resolution
  • Each Shareholder/Director/Manager must provide proof of physical address.
  • The Parent Company's most recent audited balance sheet
  • The Parent Company's Beneficial Ownership Declaration (List of Shareholders)
  • For each Shareholder/Manager, a letter of no objection (NOC) from the current sponsor is required.

Mainland Company

Mainland Firm is an inland company that can operate in the local market in the United Arab Emirates as well as outside the UAE. In the case of commercial and professional licenses, mainland enterprises have complete flexibility to conduct business. A local sponsor or a UAE national is required for the formation of a mainland business in Dubai, and the standard shareholding arrangement for a Dubai Mainland Firm is that the UAE national Sponsor holds 51 percent of the company, and the Foreign Shareholder (s) holds 49 percent.

The mainland corporation offers foreign investors and local sponsors a customized legal arrangement in which the local sponsor is paid an annual fee or a percentage of sales/profits. The foreign investor has complete control of the company, while the local partner is uninvolved in the day-to-day operations. The Department of Economic Development (DED) oversees registration, licensing, commercial compliance, and consumer protection for mainland businesses in Dubai.

Advantages of Mainland Company

The advantages of a Mainland Company are elucidated below-

Trade across Dubai and the UAE is unrestricted

You have no limits on who you can trade with or where you can trade in Dubai if you register as a Dubai mainland firm. Setting up shop on the mainland allows you to plan for any form of trade without having to worry about violating your trade permission in Dubai or elsewhere in the UAE.

When it comes to forming a mainland company in Dubai, there are various legal requirements, including the requirement that it be sponsored by a Dubai national. You may keep management and financial control of your firm by seeking professional help from a reliable business setup provider.

Having the ability to trade globally and grow your footprint

Registration on the mainland of Dubai allows your company the ability to trade worldwide, which is critical for many companies in today's increasingly linked globe. It is also a good idea to consider your company's future. Do you intend to expand internationally? Do you desire the freedom to enter crucial international markets?

Businesses with the ability to adapt in today's fast changing world are favored. Assume you have a product or service that has become popular in a specific country. In such a circumstance, you must organize the logistics to quickly infiltrate it. Fundamentally, having a mainland Dubai license means having the independence and flexibility to expand and operate your company.

Freedom to expand your business and team

Every company wants to expand and prosper, and a Dubai mainland registration allows you to accomplish just that. If you choose the mainland route, you will be able to apply for an unlimited number of visas.

It's worth noting that when you apply for additional visas, you'll require more warehouse or office space, which is normally 100 square feet each visa. If you employ a large number of remote workers who do not require workspace, the requirement to rent additional office space is generally negotiable with the Dubai DED. Having a company registered on the Dubai mainland also allows you to expand your operations to other parts of Dubai and the UAE. Consider obtaining a Dubai DED license if branch expansion is a priority for your company.

Ability to expand your product line

Dubai's smart city infrastructure is already propelling firms in new directions, and the ability to diversify will become increasingly valuable as the country approaches and beyond 2021. Choosing a mainland Dubai location gives your company substantially more room to grow. When compared to your free zone competitors, obtaining a Dubai mainland license implies the administrative process is smoother, faster, and less restricted.

Ability to work with the governments of the UAE and the Gulf Cooperation Council (GCC)

Another advantage of registering on the mainland in Dubai is that you will be able to compete for lucrative government contracts. If your startup is going to provide services that are in line with government projects, you may be in a strong position. Government contract work in the UAE is worth billions of dollars each year. If your organization earns the trust of Dubai's authorities, you'll be able to lay the groundwork for long-term commercial networking and success. Winning official governmental contracts around the UAE will undoubtedly increase your company's reputation and prestige, both within the UAE and outside.

Ability to start a flexible business

While forming a company in Dubai's mainland may appear difficult, partnering with the proper company formation specialists can provide you with a package that is both quick and thorough. Consider whether the bundle offers the following major benefits when deciding who to partner with:

  • Setup and registration of a business
  • Dubai national sponsorship incorporated automated legal administration
  • Visa and immigration processing can be completed quickly and at a low cost.
  • For your business, a dedicated service agency

Finally, forming a mainland corporation in Dubai is less difficult. As a result, your next step should be to examine your three-year business plan and assess whether Dubai mainland registration is the best option for you.

Freezone Company

The Free Zone Company is a separate legal company that operates under its own set of laws and regulations. Each free zone is permitted to conduct business both within and outside the UAE.

The primary distinction between mainland and free zones is that a free zone firm cannot operate in a non-free zone without the assistance of a local agent, but a mainland company can conduct business anywhere in the UAE. In Dubai, there are various free zones. Foreign investors choose free zone ventures for a variety of reasons, including total ownership privileges, access to world-class infrastructure, asset protection, and tax incentives.

Advantages of a Freezone Company

There are several reasons to pick a free zone if you want to start a business in the UAE.

It's simple to set up a freezone company

The procedure of creating freezone company is really basic and straightforward. The application process for establishing a freezone company is determined by the nature of the business and the freezonechosen. A few pieces of evidence, such as passport copies and business registration, will be requested of investors. It will take around a week to complete the processing.

Taxation and duties

The tax system is by far the most intriguing justification for establishing a firm in a free zone. The establishment of a free zone gives 0% business and personal tax, as well as a 5% VAT exemption. Not only that, but the free zone businesses also offer import and export tax exemptions, as well as the ability to conduct business with no currency limits.

Ownership

Setting up a firm in a free zone provides foreign investors with entire ownership of the company. Most foreign investors who want to set up shop on the UAE mainland will need a local sponsor to do so.

Doing business in the United Arab Emirates

Businesses in free zones are not permitted to trade directly in the UAE's domestic market; however, this has been easily remedied. You can do business with a locally designated distributor, whose role will be to sell your goods and services on the market in exchange for a fee. Start your free zone business first, and then expand your free zone firm throughout the UAE. These branch offices can be used to sell your product and start doing business on the mainland of the UAE.

Assistance and support

The officials of the free zone are ready to assist you both during and after the establishment of your business. Many free zones will help you apply for visas for both shareholders and dependents, such as spouses or other employees. Most free zones also assist with the opening of corporate bank accounts, as well as providing advice on the best bank for your needs and organizing meetings in-branch for you. In terms of contemporary business support, it is standard practice for free zones to offer business advice and networking assistance, as well as connections to various startup centers and growth programs, in order to help new enterprises, succeed.

Protection of personal information

Finally, free zones are well-known among privacy-conscious investors since company ownership and other corporate information, such as shareholder details, are never made public.


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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