Branch Office Setup In Dubai, UAE: Cost, Benefits & Process

The evolving economy and investor-friendly policies of the UAE attract foreign investors to expand their businesses in the UAE. Foreign entrepreneurs often face challenges in selecting the most suitable option for starting the same business operations in the UAE. In this scenario, the branch office setup in the UAE is one of the most effective options, providing a flexible way for global firms to establish their presence without creating a new entity.

By opting for branch office setup in Dubai and other emirates, companies can carry out the same activities as their parent company while benefiting from the UAE’s advanced infrastructure, business-friendly regulations, and tax-efficient framework. Now Consultant offers professional guidance to help foreign businesses establish their branch office successfully in the UAE.

Cost of Setting Up A Branch Office Setup In Dubai:

The cost of setting up a branch office in Dubai typically ranges from AED 50,000 to AED 100,000. The final amount depends on factors such as the business activity, the chosen jurisdiction, the emirate you register in, and the specific government approvals required.

The following table highlights the factors and their estimated cost included in a branch office setup in the UAE:

Benefits Of A Branch Office In The UAE

The following are the benefits of setting up a branch office in the UAE for foreign companies:

Full Foreign Ownership:

Foreign companies can fully own their branch office in the UAE Free Zone. A Local Service Agent (LSA) is required only for government coordination and administrative work. However, foreign owners have full control over their businesses, as LSA has no ownership rights in the branch offices set up on the UAE mainland.

Market Expansion:

A branch office serves as an extension of the parent company, operating under the same activities and principles. It provides direct access to the UAE’s fast-growing market and diverse customer base. This makes expansion easier and more effective for foreign businesses.

Build Trust in the Market:

Because the branch office setup is an extension of a foreign company, it builds trust in the UAE market. It builds trust with clients, banks, and authorities in the UAE. This recognition strengthens the brand reputation and partnerships of the company.

Tax Benefits:

A branch office in the UAE enjoys tax benefits, as it is taxed at the same level as the parent company. There is no withholding or other forms of repatriation tax on the transfer of income or profit between branches and their parent company. 

Strategic Location:

The UAE has an attractive strategic location as it connects Asia, Europe, and Africa, making it a global trade hub. Therefore, a branch office of a foreign company in the UAE offers excellent access to international markets. This location advantage supports growth and global expansion for foreign entrepreneurs.

Legal Structure Of A Branch Office In Dubai

The following are the key aspects of the legal structure of a branch office in Dubai: 

Full Liability of Parent Company:

A branch office in Dubai does not have its own legal identity and is considered part of the parent company. As the parent company holds full control, it is responsible for any debts or legal issues arising from its branch office in the UAE. 

Business Activity Restrictions:

A branch office is allowed to perform only those business activities that are already carried out by the parent company. If your branch office is involved in certain activities, such as direct trading of goods, it requires additional approvals from the concerned authorities in the UAE.

Link with the Parent Company:

A branch office setup in Dubai functions as an extension of the parent company. Therefore, it operates under the same trade name, ownership, and brand identity as the parent company. There exists a strong link between the branch office and the parent company.

How We Help In Branch Setup In The UAE (Process)

At Now Consultant, we simplify the setup of branch offices in Dubai and other emirates of the UAE. The following is the step-by-step process for establishing a branch setup in the UAE: 

Step 1: Decide Location and Activity

In the first step, we help you decide on the particular location and activity for your branch office. This decision depends on the nature of your business and where you want to operate, either in Dubai or other emirates in the UAE. Our experts compare the benefits and scope of activities with respect to location, so you can make an informed decision without confusion.

Step 2: Appoint a Local Service Agent

The second step for establishing a branch office in the mainland is to appoint a Local Service Agent (a UAE national or an Emirati-owned company). Now Consultant supports you by connecting you with reliable Local Service Agents. We ensure that your agreements with LSA are transparent and based on the regulations set by the UAE authorities..

Step 3:Obtain Initial Approval

In the third step, you must apply for initial approval from the Ministry of Economy (MoE). This approval confirms that the government has no objection to your business activity and allows you to move to the next steps. Our experts ensure accuracy and avoid errors that could delay your approval.

Step 4: Secure Office Space

After the initial approval, you need to secure a suitable office or business space for your branch, especially in the mainland. At this stage, Now Consultant helps you find the right office space that matches your requirements. Our experts negotiate lease terms and ensure the office space is approved by the concerned authorities.

Step 5: Prepare Required Documents

Once your office space is secured, you need to gather and submit all the required documents. Now Consultant makes this process easier by preparing and organizing all documents on your behalf. Our experts check every detail to ensure compliance and accuracy before submission.

Step 6: Apply for the License

In the sixth step, you have to submit an application for the branch office setup to the concerned authorities in the UAE. The license is issued by the DED for the mainland branch or by the Free Zone Authority for the Free Zone branch office. Our experts fill out the application form for your branch office and ensure you receive your license without unnecessary delays.

Step 7: Open a Corporate Bank Account

With the license of a branch office in your hand, you can open a corporate bank account in the UAE for all financial transactions related to your branch. Our experts also assist you in document completion and meeting other requirements to open a bank account in the UAE. 

Documents Required for Branch Office Setup In Dubai:

The following are the required documents necessary for a branch office setup in Dubai, UAE:

• Passport copies of shareholders and managers.
• Certificate of Incorporation of the parent company.
• Completed registration application forms.
• Approval from the UAE Ministry of Economy.
• Board Resolution approving the branch setup in the UAE.
• Power of Attorney authorizing a representative in the UAE.
• A no-objection certificate provided by the parent company.
• Parent company’s audited financial statements for the last two years.
• Memorandum and Articles of Association (MOA and AOA) of the parent company.
• Copies of the passport and family book (naturalisation document) of the local service agent.

All documents must be notarized, legalized, and attested by the UAE embassy in the parent company’s home country.

Why Choose Us For Branch Office Setup In The UAE?

Now Consultant offers comprehensive support for foreign entrepreneurs looking to expand their businesses in the UAE. Our business setup experts possess in-depth knowledge of UAE business regulations and government policies, ensuring every step of your branch setup is legally compliant and secure.

With long-standing relations to UAE authorities, we avoid delays by facilitating fast approvals and efficient processing of all necessary applications. We provide an end-to-end solution that aligns with your market entry strategy and long-term vision in the UAE.

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