Looking to establish a UAE branch of your company
Opening a branch office in Dubai is one of the best ways to expand your business into a strong economy. The UAE offers this great business opportunity, 100% foreign-owned and hassle-free.
In this article, you will learn about the procedure to establish your branch and why you should do it in Dubai. Let us see:
- Why should you look for opening a branch office in Dubai?
- Characteristics of the branches in the UAE
- Know the process on how to open a branch office in Dubai?
- In Connect Zone you will find the best ally to establish your branch
1. Why should you look for opening a branch office in Dubai?
Through a Dubai branch office, you will achieve a legal presence in the United Arab Emirates. Also, one of the advantages of doing it that way is that you can have 100% foreign ownership. Likewise, it may have the same legal status as its parent company and will operate under the same name.
Similarly, your company will be fully operational in the UAE, thus you will be able to carry out authorized transactions and activities. However, to open a branch in Dubai, the company needs a UAE citizen as a Service Agent. It can not only be a citizen but also a company under the complete control of Emirati citizens.
2. Characteristics of the branches in the UAE
Before thinking about opening a branch office in Dubai, you should consider the characteristics of these entities. Otherwise, you should also be familiar with business procedures to better understand how the local job market works. The distinctive features of a branch in the UAE are as follows:
- You do not need social capital, for the paid-in or the authorized capital.
- There are no corporate taxes, only for branches of foreign banks and those of oil companies.
- You can have full ownership both in one of the free zones and on the mainland.
- It is not necessary to have a UAE property partner in the branch or branches of your business on the mainland.
- The branch must carry out the same business activities as the original company.
- Also, the branch must have the same name as the parent company.
- The Local Service Agent is for administrative purposes only and payment will only need to be made annually.
- When opening a branch office in Dubai in a free zone, you need the services of a distributor/agent in the mainland to do business there.
- You can promote and market the products offered by your parent company as a primary goal.
- The branch of your business must file Audited Financial Statements (AFS) along with those of the parent company. However, it is possible to send a copy of the consolidated financial statements of the original company that contains the contribution of the branch.
- The original company of the Dubai branch must translate corporate documents into English and Arabic. Moreover, the company must certify them at the UAE embassy in their home country and the UAE Ministry of Foreign Affairs.
3. Know the process on how to open a branch office in Dubai?
Opening a branch office in Dubai is a laborious process, so having the services of professionals in the field is vital. In addition, you need to consider the cost which varies depending on various circumstances and is usually AED 100,000. However, this includes a refundable deposit of AED 50,000. Below you can see the stages of the process of establishing a branch:
3.1 Apply to the Ministry of Economy
To start the process for open a branch in Dubai, you need to apply at the Ministry of Finance. In the same way, you need to submit a mandatory contract of service agent for administrative matters. Please remember that you must be an Emirati citizen or an Emirati-owned company acting as a service agent.
3.2 Obtain the consent and approval of the authorities
You first need to obtain the agreement of the Ministry of Economy, which will provide it after the approval of the DED (Department of Economic Development). Thus, you must wait for the consent of the local body sent from the Ministry of Economy.
The next thing you need to do is get approval from the UAE Federal Committee on Foreign Companies. This receives the application from the DED, as well as the letter of permission to carry out the commercial activity of the branch. In this case, it is the Ministry of Economy that grants the aforementioned letter of permission.
3.3 Get the license from the Ministry of Economy
After receiving the approvals from the above authorities, you will receive the ministerial license for your Dubai branch office. In this way, you will receive authorization to establish the branch for the activity established in the license.
3.4 Obtain the Commercial license and register with the respective authorities
Lastly, this is the stage where you have to register the branch with the local Economic Department. After completing the registration process, you will receive the commercial license for the established activities. Likewise, with the required documents and the licenses obtained, it must be registered with the regional authorities in the place of establishment.
One of the main ones is the National Economic Registry of the Ministry and the Chamber of Dubai. This way, you will be able to complete the process for open a branch in Dubai.
4. In Connect Zone you will find the best ally to establish your branch
As you will have seen, the process, while simple, requires expertise in local laws, which we can offer you at Connect Zone. Contacting us is very simple, you just have to call the number +971 43 316 688 or you can also send your questions to the email firstname.lastname@example.org.
On the other hand, finding a job in Dubai is easier on the thetalentpoint.com web portal, where we recommend you register. In this way, you will be able to send your CV to email@example.com to take advantage of these offers.