Branch of Foreign Company
What is the Branch of Foreign Company?
A foreign branch office in Dubai is like an extension of a foreign parent company that operates in the UAE. A foreign company can establish a Branch or Representative Office (RO) in the UAE, allowing 100% ownership by the parent company.
The branch of foreign company is not considered a separate legal entity from the parent company, which means it is permitted to engage in commercial activities in the UAE as those carried on by the foreign company in its home jurisdiction.
Also, both foreign company branches and representative offices (ROs) must operate under a commercial registration and license in the name of the foreign company. In the UAE, a representative office (RO) is not allowed to generate profits.
It is also required that the non-GCC entrepreneur get a trade license with the same name and for the same activities that the parent company carries out. The branch must obtain a commercial license from the Dubai Department of Economic Development (DED) and is required to abide by UAE commercial law, which includes the Commercial Companies Law. This law covers everything related to creating, managing, and dissolving companies in the UAE.
Additionally, the branch of foreign company must adhere to several regulations such as getting visas for employees and complying with labour laws. The branch owner can appoint a local service agent to handle government liaison and other administrative matters.
Documentations Required to Open Branch of Foreign Company in Dubai
- Certificate of Incorporation (or equivalent)
- Memorandum and Articles of Association
- Certificate of Good Standing (if available) from the parent company’s home jurisdiction
- To establish a Branch or RO in the UAE, a Board Resolution is required.
- This resolution should include authorizing the opening of the office, appointing a general manager, granting power of attorney
- to the general manager, and accepting liability for the office’s financial obligations in the UAE.
- The audited financial statements of the parent company for the previous two years is required
- A statement that outlines the company’s main operations and activities
- A copy of the General Manager’s passport
- The General Manager’s CV
- A professional or bank reference letter for the General Manager
Establishing a branch of foreign company in Dubai can be a complex process, but with Corpin Consultants, you don’t have to worry about a thing. Our team of experts can take care of all the essential documentation, advice, and processing needed to set up your branch in the UAE. We aim to simplify and streamline the process so you concentrate on growing your business!
