A company’s branch office is an extension of the parent company. It’s an office where the company can run with the same name and carry out the same set of business activities. Businessmen and investors all over the world seek the opportunity to establish a branch office in Dubai. By opening a branch office in Dubai, the entrepreneurs can expand their business in the region. Apart from that, starting a branch office in Dubai gives them a geographic advantage too, thanks to Dubai’s strategic location.
Dubai provides various benefits for companies that are setting up a branch of office in Dubai region. If you want to start a branch office in Dubai, UAE, you have to follow the steps mentioned below:
File an application
For starting a branch office in Dubai, the entrepreneur must file an application with the Ministry of Economy. It is important that while submitting the application, a service agent agreement is provided. Having a UAE national as your service agent during the process of establishing a branch office is a must requirement.
Obtain Consent from the Ministry of Economy
After the Economic Department of Dubai or the Emirate in which you want to open your branch approves, the UAE Ministry of Economy will provide an agreement. Consequently, the Ministry of Economy will send the application to the local government body for consent.
Get Approval from the Ministry Of Economy and Federal Foreign Companies Committee
Ministry of Economy will issue their approval and then further documents (hard copy) will be required to submit. The Ministry of Economy will forward the application to Federal Foreign Companies Committee with a note that mentions the specific activities that are granted to a branch office in Dubai.
Obtain License from the Ministry of Economy
After the authorities approve the branch office, the ministerial license will be provided to the company. The license given by the ministry of economy will also specify the business activity undertaken by the company.
Obtain a Business License from DED
After MOE approves the application, you need to apply for a commercial license at the DED. The DED will issue the license, which is valid for 1 year, and to be renewed annually.
Documents Needed for Setting Up a Branch Office
For getting the initial approval from the Ministry of Economy (MOE), the following documents are needed:
Application forms for registration
Proof of trade name reservation
Memorandum and Articles of Association
(MAA) of the parent company
A copy of the Certificate of Incorporation of the parent company
Passport copy of the director
A no-objection letter issued by the parent company
Copies of the passport and naturalization book of the local service agent
A power of attorney for the local director
Parent company’s management board resolution for starting a branch in Dubai
The Certificate of Incorporation and the MAA must be translated into Arabic and duly notarized by a public notary.
For acquiring commercial license from the DED, the documents needed are:
The initial approval from the MOEA statement which lists the business activities to be carried out, issued by the parent company
The parent company’s audited financial statements for the last 2 years
A copy of the property lease agreement of the branch office in Dubai, stating the plot number
Copies of all the documents that are submitted earlier to get the initial approval
After successfully completing the documentation work and licensing, the branch office can register itself with commercial authorities. Then it is entered in the register of the Ministry of Economy and Commerce. The branch office is registered at the Dubai Chamber of Commerce and Industry.
Bizvise can help you open a branch office in Dubai, UAE and make sure that all your business needs are fulfilled.