A branch office is a subsidiary of a parent company that is based in another country. The purpose of a branch office is to promote and market the parent company's products and services, to enter into transactions, finalize agreements in the parent company's name, and provide services to its customers. It is not allowed to engage in any activities that its parent company is not allowed to engage in. For highly regulated industries such as banking, financial services, and insurance, a branch office in Dubai is ideal (BFSI).
PROCEDURE
The steps for establishing a branch office in Dubai are as follows:
Find and hire a local service agent (LSA), who must be a UAE national or a company with 100% UAE ownership. The LSA's job is to handle errands like obtaining licenses, permits, and visas for a fee. He is not involved in the office's operations, management, or ownership.
At the Department of Economic Development, reserve a trade name for the branch office (DED)
Request a preliminary approval from the Ministry of Economy (MOE)
After the MOE has approved the application, go to the DED and apply for a commercial license. The DED will issue the licence, which will be valid for one year and will be renewable on an annual basis.
Finalize the branch's office space.
Create a business bank account.
Arrange for the employees' visas and work permits.
Join the Dubai Chamber of Commerce and Industry as a member.
DOCUMENTS REQUIRED
The following documents would be required for initial approval from the Ministry of Economy (MOE):
Proof of a reserved trade name
Registration application forms
The parent company's Memorandum and Articles of Association (MAA)
a copy of the parent company's Certificate of Incorporation
The director’s passport copy
A no-objection letter issued by the parent company
Copies of the local service agent's passport and naturalization book
The local director's power of attorney
Agreement of the parent company's management board to open a branch in Dubai
[The MAA and the Certificate of Incorporation must be notarized by a public notary and translated into Arabic.]
The following documents are required to obtain a commercial license from the DED:
The Ministry of Education's initial approval
The parent company issues a statement listing the business activities to be carried out.
For the past two years, the parent company's financial statements have been audited.
A copy of the Dubai branch office's property lease agreement, including the plot number
Copies of all documents previously submitted for initial approval
SERVICES WE PROVIDE
If you want to open a branch office in Dubai, we can help you with the following services:
Preparing the application documents
locating a reliable local service agent
Obtaining permissions and approvals from government agencies
Assisting the branch office in opening a corporate bank account
Assisting in the search for a suitable location for the Dubai branch office
WHY CORPPLUSE MANAGEMENT CONSULTANCY?
Our branch office setup services are a combination of years of professional experience and liaison with government agencies, providing end-to-end procedural solutions for foreign businesses. Our presence across the UAE enables you to quickly open a branch office in Dubai or any other emirate.
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