Branch Office
in UAE
Branch Office in UAE
Highgate Business Management Consultants can help you set up your branch office in the United Arab Emirates (UAE). A branch office of a foreign company in the UAE can be 100% owned by the parent company and is an extension of the parent company headquartered outside the UAE. The branch office doesn’t have a unique legal identity as that of its parent company, so the name of the branch office will be similar, if not identical, to that of the parent company. It must have a trade license for the business activities carried out in the UAE.
It is important to note that the purpose of a branch office of a foreign company is to promote the products and services of the parent company. Therefore, it is essential that the branch office carries out the same business activity – or part of it – as that of the parent company.
However, some business activities are not allowed to be carried out by the branch office of a foreign company in the United Arab Emirates. For more details, you can get in touch with us, and our experienced team will provide you with the necessary information and guidance.
How to Set Up a Branch Office in UAE
Setting up a branch office in UAE can be a complex process, and it is important to get it right to avoid unnecessary hassles down the line. Here’s a step-by-step guide on how to set up a branch office in the UAE:
- Appoint a Local Service Agent (LSA): To start with, you need to appoint a Local Service Agent (LSA) who will represent your company and liaise with government departments on your behalf. The LSA can be a UAE national or a company that is 100% owned by UAE nationals.
- Choose a trade name: Your branch office in UAE should have the same name as your parent company. However, if the name is already taken, you can use the term ‘Middle East’ after your company’s name to identify it as your branch office in UAE.
- Submit an application to the Ministry of Economy: Once you have appointed an LSA and decided on a trade name, you need to submit an application to the Ministry of Economy. The application should contain detailed information about your company, including your business activities, your head office address, and the name and credentials of your General Manager.
- Obtain an approval letter: After reviewing your application, the Ministry of Economy will issue an approval letter for the Department of Economic Development (DED) in the emirate where your branch office will be located. If you plan to open a branch office in Dubai, the approval letter will be for the Dubai DED. If you plan to open a branch office in Abu Dhabi, the approval letter will be for the Abu Dhabi DED.
- Submit additional documents to the DED: Once you have obtained the approval letter, you need to submit additional documents to the DED. These include a lease agreement for your proposed branch office, financial statements for the past two years, and an auditor’s statement confirming that your company has been in existence for at least two years.
- Obtain a commercial license: If all your documents are in order, the DED will issue you a commercial license with a validity of one year. You will need to renew this license every year.
- Open a bank account: Finally, you can proceed to open a bank account in the UAE. However, this can be a complicated process due to strict anti-money laundering regulations. Your bank may need to see how your company is structured in its country of origin, and if your company documents are in a foreign language, they will need to be translated and attested for legal use. It is recommended to seek the help of an experienced business setup consultants to help you navigate the complexities of this process.
Why Choose Highgate Business Management Consultants?
At Highgate Business Management Consultants, we have years of experience helping companies set up their branch offices in the UAE. We have a team of experienced business setup consultants who can guide you through every step of the process, from appointing an LSA to opening a bank account. Our legal team can ensure that everything is above board, and our registered auditors can help you with your application to the DED. We understand the unique challenges of doing business in the UAE, and we can help you navigate them to ensure a smooth and successful branch office setup. Contact us today to learn more.
Request A Consultation
Fill the following form and we will get back to you soon
