Foreign companies wanting to set up branches in the UAE has two options under the UAE Commercial Law. The first option is to open a full branch, which can practice the same activities as the mother company; the next option is to open a Representative Office, which is really a marketing office and cannot really trade. Each of these legal forms provides the company with access to different functions in the market. Both these options help make the presence of the foreign company along with 100% ownership. The branch functions are mostly seen as an extension of the parent company and have no separate legal identity. The parent company is liable for all activities under this license. Both these options require a local service agent for the registration of the foreign company.
Difference between a Foreign Branch Office and Representative Office?
Branch of a Foreign Company in UAE
By setting up a branch office in UAE, you can perform all the parent company's activities; subjected to approval on activities as specified in the license at the time of incorporation and approval by the Ministry of Economy (MOE).Representative Office in the UAE
By setting up a Representative Office in UAE, you can market the parent company's service or products. It is impossible for a Representative Office to commercially trade or sign contracts in the UAE. Both the legal forms need a service agent, either as an individual or corporate, to complete the process. The responsibility of a service agent is to render labour and immigration services for the company. The service agent never holds any financial liabilities or obligations concerning the company inside or outside the Emirate.Advantages of choosing Black Swan Business Setup Services as your Local Service Agent
UAE is a dream for most foreign companies. Setting up a branch of the foreign company in Dubai and UAE has varied perks and attractions, even though the process is complex and time consuming. We at Black Swan Business Setup Services provide you with a hassle free experience, at the same time setting up your business. We do have an extensive market and process knowledge. We make sure you get the support needed in setting up your company. By choosing Black Swan Business Setup Services, you have the advantage of securing a trusted local service agent for your foreign branch. We are adept at handling all the necessary paperwork like licenses, visa, obtaining labour quotas, etc. We can also help you with the opening of corporate bank accounts and assisting in translations.- With us, your company retains 100% Management and Financial Control.
- We serve MNCs, SMEs, and entrepreneurs who enter the UAE market.
- We are transparent and keep you informed of every step.
Requirements and the key steps for setting up a Foreign branch office in Dubai and the rest of UAE
- All foreign companies need to appoint a local service agent to handle the process. This local service agent must be a UAE national, or a company owned entirely by a UAE national.
- The agent finishes the trade name reservation process, which is done through the Department of Economic Development (DED)
- The next step is to obtain approval from the Ministry of Economy and license from the Department of Economic Development (DED)
- The Ministry Of Economy (MOE) will issue approval letters to either Abu Dhabi Department of Economic Development (ADED) or Dubai Department of Economic Development (DDED)
- The documents required are a copy of the proposed lease in UAE (Tawtheeq in Abu Dhabi, Ejari in Dubai) MOE initial approval. You will also have to produce the copies of documents submitted to MOE and an engagement letter from a locally registered UAE auditor confirming company existence.
- The Department of Economic Development (DED) issues a commercial license for a year, subjected to renewal annually.
- You will also need office space and bank accounts.
- Next is to apply for labour cards and visa for employees.
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