Branch Setup In UAE

The UAE has become one of the most recognized and well-developed regions in the world. Increasing business activities lead to expansion. When a company unit performs very well in the domestic market, then they want to establish their branch office in UAE. If you are interested in branch setup in UAE then we at Start Any Business UAE are here for you to deal with this process. We guide you properly.

Branch Office In UAE

Any entrepreneur who wants to gain a strategic advantage in the flourishing market of the UAE is faced with a wide range of options. Although several people choose a free zone or conventional mainland formations, a branch office is a perfect choice if you want to achieve a foothold in the local market and maintain 100% authority of your corporation at the same time.

In several cases, the parent company, whether located in the United Arab Emirates or foreign, is directly liable for the division’s commercial processes. And branch offices are simply extensions of existing companies. Unlike the term of a division which is deemed to be properly independent, the branch office doesn’t have a particular legal status from the parent company. Similarly, while many branch offices are permitted to take a part in the local market of the UAE, they can just run the same commercial activities to the parent corporation.

Branch Setup In UAE

How Many Types of Branch Office Available in the UAE

Branch offices come in four different types. The one which is nicely suited to your requirements would be based on your commercial activities, the framework of your corporation, and some other major factors.

  • Corporate Stakeholder – The parent corporation can be located in the UAE or abroad. For instance, 50% of the company can be held by the UAE company. 25% by a person, and the rest 25% another one. This is also the potential to have several owners of the business.
  • Branch Company – It is the most typical establishment in the United Arab Emirates. With a company stakeholder choice, the parent organization of the branch can be located in the UAE or foreign. Although, branch corporations vary from company stakeholder offices in that the parent corporation remains the sole proprietor. As such, there is no share capital required to open a branch office. The branch office also utilizes incorporation articles of the parent.
  • Representative Office – These offices are usually very affordable for all kinds of branches. Again, the parent corporation can be located in the UAE or foreign. The biggest difference with executive offices is that their company functions are limited to the sourcing and promotion of jobs for the parent company. Representative offices aren’t permitted to earn profits in the UAE and would outsource their jobs to the parent organization.
  • Subsidiary – Subsidiary is probably the most unusual kind of branch in that they are considered to be a separate legal unit to the parent organization and should be overseen from within the United Arab Emirates. It means that the subsidiary takes full responsibility for its acts and business functions. The subsidiaries’ parent company can be based in the UAE or foreign, but the subsidiary’s management should be situated in the United Arab Emirates.

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Document Required For Branch Setup In UAE

Documentation always plays an important for any business setup in UAE. Let’s have a look at the necessary documents required for branch setup in UAE.

  • Reservation of a business name and the forms of initial approval
  • Incorporation Certificate, Memorandum of Article, Article of Association
  • Board resolution approving the branch office, good standing certificate
  • General Manager’s power of attorney
  • Copies of the Director’s passport
  • Parent corporation’s audited accounts for the past 2 year
  • A statement that underlines the company’s setup objectives, major operating activities.
  • A notarized contract with a local agent
  • Approval by the government

Benefits of Setting Up a Branch Office in the UAE

Following are the advantages that you can get by setting up a branch office in the UAE:

  • Foreign investors have the choice of 100% ownership
  • Flexibility to have a bank account
  • Business confidentiality is maintained strictly
  • 0% corporate tax
  • 0% personal tax
  • There is just a 5% minimum duty for import

Branch Office Cost in Dubai

The amount can be differ according to the location, type of company, licensing fees and other things. The final cost of setting a branch office in Dubai and UAE would be based on where you establish and the nature of the activities of your business. Although, as a general guidance, you have to potentially expect to spend in the sector of INR 6,10,400 – INR 10,17,340.

How We Can Help You

Start Any Business UAE is one of the reputed and leading business setup consultants in Dubai. We have a professional team of proficient specialists who have ample knowledge and experience about the market of the United Arab Emirates.

Are you planning for a branch office set up in UAE? It is an incredible decision that would assist your organization to grow rapidly at the international level. Being business formation consultants, comprehend the procedure of formation, and assist many customers to form their corporation in the country. To move ahead to the next phase, communicate with us – We’ll be delighted to oblige you.

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