Representative Office
in UAE
Representative Office in UAE with Highgate Business Management Consultants
Are you a foreign company looking to establish a Representative Office in the United Arab Emirates (UAE)? Look no further than Highgate Business Management Consultants. We provide expert guidance and support throughout the entire process of setting up a Representative Office in the UAE.
What is a Representative Office?
A Representative Office is an extension of the parent company that provides support for its products or services in the local market or acts as a regional administrative office. However, it is not permitted to carry out commercial activities or import products or services. It also cannot avail credit facilities, but it is allowed to have a bank account for its local expenses.
The Difference Between a Branch Office and a Representative Office
A Branch Office can carry out commercial activities and turn a profit, while a Representative Office cannot. Instead, a Representative Office must outsource all business to its parent company, meaning that its cash balance will always be negative at the end of the financial year.
How to Establish a Representative Office in the UAE
The first step to establish a Representative Office is to find a Local Service Agent who must be an Emirati or a UAE-based company that is 100% owned by Emiratis. The Local Service Agent will represent your company before all government agencies and will be paid a fee.
The next step is to decide on your trade name. While the Representative Office should ideally have the same name as the parent company, sometimes there may be restrictions. A company formation expert can help you find a name that matches your company or organization.
Once you have selected a Local Service Agent and a trade name, an application must be submitted to the Ministry of the Economy. The application should detail your parent company’s business activities and the address of its global headquarters in case it already has a presence in multiple countries. The Ministry of Economy will review your application and issue an Approval Letter for the Department of Economic Development in the emirate where you plan to open your Representative Office.
You will also need to submit a lease agreement for the commercial space that you have in mind and audited financial statements of your parent company for the past two years, attested to by a UAE auditor.
The Department of Economic Development issues a Business License once the application is approved, and you can then proceed to open a bank account. However, opening a bank account in the UAE can be a complicated process, with strict anti-money laundering regulations in place.
Why Choose Highgate Business Management Consultants?
Highgate Business Management Consultants has years of experience in company formation and can assist you in every stage of the process. We work closely with our legal team and panel of auditors to ensure that the experience is nothing short of international standards.
Our friendly consultants are committed to providing you with all the information you need to run your Representative Office smoothly in the UAE. We understand that setting up a Representative Office can be a daunting task, which is why we are here to guide and support you every step of the way.
Contact us today to learn more about how we can assist you in setting up a Representative Office in the UAE.
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