Branch /Representative Office

UAE Commercial Company Law (13) of 1988 allows foreign companies and corporations to open Branch/Representative office to exercise their main activities in UAE. A branch office is permitted to exercise the activities (Licensed) of its parent entity; it empowers to undertake transactions and offer services to customers. Representative offices are only allowed to have promotional activities supplementing the business activity of the parent company.

Representative office cannot enter into business transactions or market products. Additional license is required in some cases for the Branch of foreign company from Ministry of Economy.

A branch or a representative office will have to appoint a local services agent (LSA). The LSA must be either a UAE national or a company which is completely owned by UAE nationals.

Responsibilities of a Local Service Agent

  • He is not responsible to undertake any financial obligations and commitments as a result of the operation of the Branch or Representative office
  • He should not interfere in the matters related to the Branch or representative office’s management or activities
  • His duties towards the Branch or Representative Office are as requested by the principal (E.g; getting approvals and permits from government authorities)
  • He is remunerated on a lump sum basis as agreed between the parties.

We supervise the entire process of establishing professional firms for our clients. It includes strategic inputs including organizing a business plan :

  • Getting approvals and clearances from various departments
  • Finding a local service agent
  • Drafting of Local service agent agreement
  • Helping to open bank accounts
  • Assisting to find a proper office location
  • Handling other documentation formalities.

 

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