How To Start A Branch Office In Dubai: Step By Step Guide
Due to the prominence of globalization in the business ecosystem, establishing an international presence has been acknowledged by entrepreneurs. This can help to access the important market. Dubai is the best place for it as it provides opportunities that are unparalleled and are technology driven. Branch offices are legal subsidiaries of the parent company, and full ownership is under the parent company with the same name, business activities, etc.
Sticking to guidelines to register a branch office in the Dubai Mainland or Free Zone is essential. By establishing a branch office in Dubai, you can get the feasible option to have a legal presence in the UAE.
There are two types of branch offices that can be functioned in Dubai those located on Dubai’s Mainland and those in Free Zones. Article 313 of the companies law allows a foreign company to launch a representative or branch office in the UAE to execute business activities.
It is permitted to engage in licensed activities for foreign businesses establishing a branch in the UAE, whereas there is a restriction for representative offices for conducting promotional activities for the parent company’s goods and services. It is required to obtain permission from the Ministry of the Economy before getting a license from the DED.
What are the Requirements to Open a Branch Office?
Specific criteria must usually be met to open a branch office in Dubai. Given below are the essentials to be fulfilled to open a branch office:
1. Make an Application
It is required to submit an application for the foreign investor to the Ministry of Economy. A service agent agreement is also essential during submission, and the service agent should be a UAE national, another critical factor to consider when establishing a representative office.
2. Obtain Consent from the Ministry of the Economy
The Ministry of Economy will only issue the agreement after the DED has approved it. The application will be forwarded to the local government for approval by the Ministry of Economy.
3. Acquire Authorization from UAE Federal Foreign Companies Committee
The next step after submitting the application to the economic development department is to get approval from the Federal Foreign companies committee.
It is from the Dubai Economic Department that the committee receives the application; this should include a permit letter from the Ministry of Economy and Commerce outlining the business activities that the company intends to pursue.
4. Obtain Approval from the Ministry of Economy
The ministerial license will be provided to the company after the above authorities approve the branch office, and the business activity company is authorized to engage in will be detailed in the license.
5. Receive Your Business License
The registration process will commence at this stage, in which the local economic department will register the Dubai branch office, followed by the issuing of the license. You can also visit the Professional License in Dubai for additional reference.
6. Secure Registration with Commercial Authorities
The branch office in the UAE can register with the regional authorities and start a business after all the required documents and licenses. The branch office will be registered with both the Ministry of Economy companies register and the Dubai chamber.
7. Cost of Launching a Branch Office in Dubai
The price of opening a branch office depends on numerous factors; it could be AED100000, comprising a startup payment of AED 500000.
Set Up Your Branch Office Right Away!
Dubai is a rapidly growing economy driven by numerous sectors that attract investors and entrepreneurs. Golden Fortune can help you to set up a branch office quickly and efficiently. Contact us for further information.
