Establish a Branch of a Foreign Company in the UAE
With a rapidly growing economy and a strategic geographic location, the UAE presents abundant opportunities for foreign companies looking to expand their business operations. However, navigating the legal and regulatory landscape can be complex. Our expert team at Dahhan Business Services is here to simplify the process and ensure a smooth setup for your branch.
Why Establish a Branch of a Foreign Company in the UAE?
Expanding your business into the UAE via a branch office can offer numerous benefits:
Geographic Advantage:
The UAE is a global trade hub connecting Europe, Asia, and Africa, offering easy access to a vast market.
Economic Stability:
With a diversified economy, robust infrastructure, and a business-friendly environment, the UAE is an ideal location for international business.
Tax Benefits:
In most UAE free zones and certain mainland areas, there are no corporate or personal income taxes, making business operations highly profitable.
Legal Framework:
The UAE legal system is supportive towards foreign investment, making branch establishment a viable option for international companies.
Brand Credibility:
Operating a branch in the UAE enhances brand reputation and trust among regional customers and partners.
Key Statistics and Industry Benchmarks
- ZAs of 2022, the UAE ranked 16th globally in the “Ease of Doing Business Index” by the World Bank.
- ZForeign direct investment (FDI) in the UAE increased by 44% in 2022, reaching AED 20.7 billion (approximately USD 5.6 billion).
- ZThe UAE is home to over 45 free zones catering to various industries, which offer 100% foreign ownership and tax exemptions.
- ZAs of 2022, the UAE ranked 16th globally in the “Ease of Doing Business Index” by the World Bank.
- ZForeign direct investment (FDI) in the UAE increased by 44% in 2022, reaching AED 20.7 billion (approximately USD 5.6 billion).
- ZThe UAE is home to over 45 free zones catering to various industries, which offer 100% foreign ownership and tax exemptions.
Steps to Establish a Branch of a Foreign Company in the UAE
Initial Approval and Name Reservation
Begin by obtaining initial approval from the Department of Economic Development (DED) where you plan to set up the branch. Additionally, you need to reserve a trade name that complies with the UAE naming conventions.
Legal Attestation of Documents
Foreign company documents including certificates of incorporation, memorandum and articles of association, Board Resolution and all other official documents under the foreign company need to be attested by the UAE embassy in your country of origin or the home country’s embassy in the UAE.
Submission of Required Documentation
Submit the attested documents and additional required documents such as a branch office manager’s passport copy and attested board resolution / power of attorney to the DED.
Lease Agreement and Office Space
Secure a physical office space in the UAE. A lease agreement needs to be presented to the DED as part of the licensing process.
Application for License and Approvals
Apply for a commercial license from the DED. Depending on the business activity, additional approvals from relevant authorities might be required.
Labor and Immigration Procedures
Apply for the company file opening in Labour and Immigration once completed you can apply for a Labor Card for employees and visas for management personnel.
Bank Account Opening
Open a corporate bank account in a UAE bank. This step requires all the company documents and approvals obtained until this stage.
| Step | Description | Estimated Time Frame |
|---|---|---|
| Initial Approval | Obtain initial approval from DED and reserve a trade name. | 1-3 days |
| Document Attestation | Attest foreign company documents. | 1-2 weeks |
| Document Submission | Submit attested documents and additional required documents to DED. | 1-3 days |
| Lease Agreement | Secure office space and present lease agreement to DED. | 1 week |
| License Application | Apply for a commercial license from the DED. | 2-5 days |
| Labor and Immigration | Apply for company file in Labour and Immigration. | 1-2 weeks |
| Visa Application | Apply for labor cards and visas for employees. | 1-2 weeks |
| Bank Account Opening | Open a corporate bank account. | 1-2 weeks |
Important Legal Requirements
Operating a branch office in the UAE mainland differs from free zones, where foreign companies can have 100% ownership. The branch must operate in the same line of business as its parent company and does not have a separate legal identity, meaning all liabilities and obligations are borne by the parent company. Additionally, the branch must comply with local regulations, including licensing and administrative requirements.
Advantages of Using Dahhan Business Services
At Dahhan Business Services, our mission is to make your branch setup as seamless as possible. Here are the advantages of partnering with us:
Expert Consultation:
Our team offers personalized consultations to address your specific business needs.
Documentation Support:
We assist in preparing and attesting all necessary documents swiftly and accurately.
Regulatory Compliance:
We ensure that all legal requirements are met, saving you time and avoiding potential penalties.
Office Space Solutions:
We help secure the ideal office space that suits your operational requirements.
Ongoing Support:
Our post-setup services include accounting, visa processing, and annual compliance tasks.
Case Study Excerpt
We recently assisted a multinational IT company in establishing their branch in Dubai Mainland. The client needed a local service agent and a strategic office space. Within a month, Dahhan facilitated everything from document attestation to acquiring the necessary licenses and opening a corporate bank account. Today, they are successfully operating and scaling their business in the UAE.
Conclusion
Setting up a branch of a foreign company in the UAE can be a strategic move for global expansion. Dahhan Business Services combines deep expertise with a client-centric approach to make your transition smooth and hassle-free. Our comprehensive services cover every step from licensing to post-setup support, ensuring that your branch operates efficiently and complies with local regulations.
Contact us today to learn more about how Dahhan Business Services can assist you in establishing a branch of your foreign company in the UAE.
