Establishing Branch of a Foreign Company in UAE

Branch of a Foreign Company is an extension or the additional presence of the parent company where the company can operate with the same name and carry out the same line of activities. The parent company can also establish the branch for the purpose of representation of their company in other locations as well. The Branch of Foreign Company can be established in two jurisdictions; namely, Mainland and Free Zone. In this article, we will discuss about the formalities, approvals and requirements to establish the Foreign Branch in mainland and Free Zone.

Foreign Branch Office Registration in Mainland

Establishing the branch of Foreign Company in Mainland is a complex process which requires drafting and authentication of legal documents at the country of origin.  A local agent needs to be appointed to open the Foreign Branch in the mainland, however 100% ownership of the company shall be retained by the parent company.A service agent’s responsibility is to render labour and immigration services for the company. They hold no financial liabilities or obligations related to the company inside and outside the Emirate. In UAE mainland, the branch of Foreign Company can be established as;

• A Foreign Company can establish its branch in the UAE mainland where the office here can operate the same activities of the Parent Company, however, Foreign branches in the mainland are not permitted to perform commercial and industrial activities

• A Foreign company can also establish its branch in the UAE mainland as a Representative office. The main objective of setting up a Rep Office is to act as a marketing and communication office in the Middle East. Under this setup, the branch office cannot commercially trade or sign contracts in UAE.

Process of establishing Branch of Foreign Company in UAE Mainland

• Authentication of corporate documents of the Parent Company
• The Department of Economic Development will verify the documents and issue Initial approval certificate. the name of the company can also be registered as per the DED guideline
• Immigration approval for the signatory
• Drafting and notarizing Local Service Agent Contract agreement
• Bank account opening
• Registration at the Ministry of Economy
• Special approval from external authorities might be required depending on the business activities
• Registration of Office Tenancy Contract(Tawtheeq for Abu Dhabi and Ejari for Dubai)
• After the successful submission of all documents, DED will issue the license
• E- channel registration
• Applying for E- signature card
• Opening Labor and Immigration file
• Applying for the quota and initiating visa process. 

Foreign Branch Office Registration in Free Zone

The process of Foreign branch registration in the freezone is quite hassle free, the registration process might take between 3 days to 30 days based on the free zone jurisdiction and the line of business.

Advantages of MBG Sponsorship

• MBG handles all the necessary paperwork to establish your business in a timely manner. This includes applying for visas, licenses, obtaining labor quotas, translation services and assisting with the opening of corporate bank accounts
• The branch retains 100% Management Control and 100% Financial Control
• Full Management Team on hand 24/7
• Suitable for entrepreneurs, SMEs and MNCs entering the UAE market
• Transparent and reliable, keeping you fully informed

 

Vipin Nair works as DGM in MBG Corporate Services. He has more than 12 years of experience in Company formation, Corporate PRO solutions and providing advisory solutions to various entities in UAE. He has successfully completed several assignments in Oil & Gas, IT, Financial Services, Telecom  and Contracting where he was able to reduce operational cost by offering customized PRO solutions based on client requirements.

Vipin has helped clients in setting up Foreign Branch,  Offshore and Holding companies to protect the rights and ownership of the investors who operates their business especially from the Middle East region.

Email us:- [email protected]