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
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
How can you open a Mainland/Freezone Company Branch in the United Arab Emirates?
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
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
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
- 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
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
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
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
What are the Documents required to open a branch?
- Each shareholder, director, and manager must complete a Know Your Customer (KYC)
- 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 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,
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
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
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.
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
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.
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
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.