Things to know about Branch and Representative offices in UAE
The UAE is a destination for business innovation, investment, and reaping the rewards of one’s labour. It has all the advantages an entrepreneur could hope for in terms of potential, favourable business environment, location, rules and laws, and liquidity options.
Is there any plan to establish a branch and representative offices in the United Arab Emirates? It’s the right step that assists your business’s faster global expansion. HLB HAMT Business Consultants has helped numerous clients establish their businesses in the UAE, experienced with the establishment process as a business advisor.
Setting up Branch and Representative Office in UAE
- Under UAE Federal Law No. 2 of 2015 on Commercial Companies, foreign enterprises, including those wholly owned by non-UAE residents, are entitled to establish a Representative Office in the UAE.
- Opening a branch office is a great option that can help your company’s global expansion.
With a competent and knowledgeable workforce, HLB HAMT understands the setup process and has assisted various clients in establishing companies in the UAE.
A. Representative office in Dubai
A representative office offers marketing activities for the parent company’s goods and services in the UAE.
Why Set Up a Representation in Dubai or the United Arab Emirates?
- The key benefit of opening a representative office in Dubai is that it is affordable. No capital investment is needed to open a representative office.
- Most resources remain with the parent company, resulting in lower operating costs and small commercial activities. With a free zone configuration, you may maintain complete control of the business because it’s an extension of the parent company.
A representative office can be an effective tool for marketing and promotion for established businesses. It provides you with a solid base in the market for goods and services in UAE, which is expanding quickly. You can grow your company domestically with minimal costs and under advantageous tax circumstances.
Benefits of Establishing a Representative Office
- Dual-interested shareholders establish a representative office with several other shareholders, up to a maximum of 50.
- No share capital.
B. Branch Office in Dubai
Branches are separate operations from the main headquarters of a company. Typically, branch offices are of smaller divisions that handle various aspects of the business, including marketing, accounting, and human resources. A branching legal system exists in both the Mainland and the Free Zone.
Why a Branch of a Foreign Company in Dubai?
One of the most crucial business structures that a foreign organization might set up in Dubai to make investments in specialized industries is a branch office.
- They are a more practical option compared to the liaison office because they conduct business and make money. The branch office of the parent company is an addition to it.
- Under Dubai’s tax regulations, branch offices offer the same advantages, including the capacity to repatriate income.
Benefits of Establishing a Branch Office
- 100% ownership is possible for foreign investors.
- Obtaining access to a bank account
- Confidentiality in the workplace is strictly maintained.
- MENA region exploration from a safe base.
- Personal taxes are zero.
- A place of geographic significance.
How can I establish a branch office in the United Arab Emirates?
To open a branch or representative office in Dubai, HLB HAMT will provide complete assistance, including documents and paperwork. Our team is proficient at organizing the documents required to open a branch or representative office in Dubai and supporting you throughout the process.
Obtain a trade name reservation
Applicants must apply for trade name and office registration approval to the Emirate’s Department of Economic Development (DED).
Submission of application to the Ministry of Economy
The application must include a detailed picture of the company, the headquarters, the type of business, the name of the general manager in the UAE, and any other documentation needed for approval.
Get a license from the DED
The Abu Dhabi Department of Economic Development or the Dubai Department of Economic Development will only get a clearance letter from the Ministry of Economy (MOE) following the submission and evaluation of the necessary paperwork. A deposit of AED 50000 is also required at MOE as a bank guarantee.
Perform activities related to administration
Following receipt of the license, you can concentrate on other elements of business formation, such as locating office space, opening bank accounts, and getting employee visas and labour cards.
Chamber of Commerce and Industry Membership
The last step is to apply for membership in the Abu Dhabi Chamber of Commerce and Industry and attach copies of the office lease contract and a business license issued by the Department of Economic Development.
HLB HAMT To Assist!
“Leap to the Edge of success by establishing a Branch or Representative Office with HLB HAMT Consultants”
Establishing a branch or representative office helps the parent firm expand and serves as a pillar of support, which ultimately helps them win over the large market in various regions of the world. HLB HAMT Business Consultants with years of expertise in business formation make up your ideal business to grow.
If you decide to establish a representative office in the United Arab Emirates with us, we guarantee that we will provide you with the information you need to make it successful. To ensure our services meet international standards, we work closely with our auditors and lawyers when setting up a Representative Office or Branch Office in Dubai.
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