Opening a branch office in Dubai or anywhere around the UAE allows foreign investors and international entrepreneurs to widen their business. While Dubai provides various benefits for setting up a company – branch offices of foreign companies can leverage additional perks.
Hence, many investors with successful companies often bypass creating a new entity in Dubai. Instead, they choose to open a branch office – while choosing their business structure. The good news is that with CorpCreators, starting a branch office is also pretty simple in Dubai. But, before that let’s break down the benefits, requirements, and steps involved in setting one up!
Benefits Of Opening a Branch Office in Dubai:
- Go Global: Did you know that the UAE’s foreign trade was valued at approximately 722 billion AED? That is exactly why Dubai’s location and connections are perfect for foreign trade – making it easy to reach new customers in the Middle East and Asia.
- Save Money: The UAE has recently introduced a competitive corporate tax rate of 9%, which is one of the lowest compared to the global average of 23%. Plus, there is no income tax, so you can keep more of your profits!
- Full Control: You run the show – no need to share ownership with a local company. Investors of all nationalities can establish and fully own companies in the UAE, thanks to the enactment of the Commercial Companies Law in 2020.
- Fast Setup: Get your office up and running quicker than starting a whole new company. The average time taken to start a branch company in Dubai is as low as 4 weeks, with no minimum share capital.
In short, a Dubai branch office lets you expand your business, save money, and operate smoothly.
Requirements of Setting Up a Branch in Dubai:
1. Reliable Local Agent
Opening a branch office in Dubai requires a Local Service Agent, a UAE national who acts as your official representative. This agent handles tasks like securing visas, work permits, and other government approvals, making them a crucial partner for navigating the setup process.
2. Trade Name Reservation
The Department of Economic Development (DED) of Dubai reserves the trade name for the foreign or parent company.
3. Initial Approval
After submitting the passport copies of the investors, the parent company papers, and preliminary documentation, the Department of Economic Development (DED) provides the initial approval to set up a branch office in Dubai.
4. Ministry of Economy (MOE)
An approval from the Ministry of Economy is also required to start a branch office in Dubai. They may demand paperwork concerning the parent company. The UAE Ministry of Economy provides an application that must describe the parent company. The application needs details such as;
- the address of the head office,
- the nature of the business,
- allotment of shares,
5. DED License
The approval from the Ministry of Economy must be submitted to the Department of Economic Development to proceed with the process of setting up a branch office in Dubai. Also, additional documentation will be submitted to the DED depending on the nature of the branch office. After which the commercial license is issued by the DED.
Here’s How to Open a Branch Office in Dubai:
1. File Your Application:
Our experts at CorpCreators help you navigate the application process with the Ministry of Economy and Commerce. This includes securing a service agent agreement with a UAE national – a crucial step for establishing your branch office.
2. Secure Local Approvals:
We will liaise with the relevant authorities to obtain the necessary approvals. The Ministry of Economy and Commerce will forward your application to the local Economic Department and the UAE Federal Foreign Companies Committee for their consent.
3. Obtain Your Branch Office License:
Once approved by all parties, the Ministry of Economy and Commerce will issue a ministerial license specifying your business activities.
4. Finalize Registration:
We will work with the local Economy Department to register your branch office and secure your official Business License.
Register with Commercial Authorities:
With all licenses in hand, you will be ready to register with the commercial authorities in your chosen region and commence operations.
Streamline Your Dubai Expansion with CorpCreators
CorpCreators, your one-stop shop for all things business setup in Dubai, can help you navigate the exciting world of branch offices.
We are more than just business setup consultants in Dubai, we are your partners! We guide you through the process of company registration, documentation, legalities, bank account opening in UAE, and a lot more!
Ready to unlock Dubai’s business potential? Contact CorpCreators and book a free appointment today!
