Opening a Branch Office in UAE – Requirements, Setup & License Cost
Opening a new branch of business is one of the things that businessmen conduct here in the UAE. More often than not, business owners carry out a business setup in Dubai and expand into the free zones to do business in there. However, there is quite a confusion between branch office and representative office.
Difference Between Branch & Representative Office
A parent company can set up another entity that is registered to that state or country and under it jurisdictions but is still considered as part of the aforementioned parent company. The ownership still belongs to the parent company of the branch that should be licensed with the same name and activity.
On the other hand, a representative office is defined as an activity of a branch that is for the sole purpose of marketing the products and services of the company; however, delivery and trading cannot be done by this office. Anyone who wishes to establish a representative office in Dubai needs to go to the UAE Ministry of the Economy and Dubai Department of Economic Development to be registered.
Opening a branch company in Dubai simply means that a person already has a licensed organization in the UAE (outside the free zones) and would like to cater to other and potential clients inside those zones. Almost the same procedure of choosing an office, warehouse, and location is applied when you set up a branch of a local company. In addition to this, you would need a national service agent when you set up a branch. This agent must be either an individual who is a UAE national or a company that is owned by UAE nationals. It should be noted, however, that this agent will not have any rights on the branch that is set up. This is only done because the federal and local government requires this so.
There are additional steps to be done and procedures to follow when starting a business in Dubai, which is basically a branch. For this reason, a consultant is advisable to be sought for further information for your guidance. A consultant can definitely answer your question of how to open a branch office in UAE, giving you a detailed explanation and step-by-step process so you will grasp the pros and cons of doing so. You can find out from them the cost of setting up branch office in Dubai as well so that you can be financially prepared when you enter this venture. Opening a new branch of business may not be a simple task but it is something that can be done systematically, adhering to the laws of the land, when the right people do it on your behalf.
Whether you are after a company formation in Dubai, setting up a branch, or setting up a representative office in Dubai, your consultant can help you decide and weigh in things. The information that you need to know will be provided by them, such as if you set up a branch, you are definitely allowed to do the same activities that your parent company does.
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Following industries you can setup in UAE
We covers all the following industries, even if your industry not in list you can consult with us we can help you setup.
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Benefits of Setting up Branch of Local Company in UAE
As with any other business setup, advantages do go alongside setting up a business in Dubai and a branch as well. More often than not, businessmen who already have their organizations in the UAE want to cater their customers in other parts of the country by setting up another branch to ensure that the demand for their products and services is met. This is a great way to meet their clients halfway and even established a better rapport than what’s already been established between them and the consumers.
Moreover, with this kind of expansion, the name of the company also has the opportunity to be known by other consumers and might even catch a new target market that they can add to their potential clients. This will also give the organization a strong presence in the country as it slowly works its way up to the notable names in its industry.
Show moreSetting up a branch gives a raise for the revenue of the entire enterprise. Aside from this, the people will see how solid a foundation your company has that it has managed to expand into somewhere else. So to say, when done right and executed correctly, it will give positive effects to the whole organization as a whole.
This is considered to be a common procedure that a local company does when they have already formed a strong relationship with a number of clients or consumers. A study should also be done before going forward with this decision as it can be risky if you don’t have any figures to base on for taking this venture.
The good thing about getting a national service agent is that they deal with the government authorities. They take care of all the requirements that need to be done or processed for your branch setup to get started.
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Business Setup Requirements & Procedure
Requirements for Dubai Company Registration
- Proof of tradename reservation (our firm’s task)
- Proof of initial approval for the activities (our firm’s task)
- Passport copies of the shareholders
- Passport copy and CV (resume) of the manager
- Personal information sheet of each shareholder and manager (template will be forwarded by our firm)
- Lease agreement (documents)—having a physical address for your business/office is mandatory in the UAE. The rent in average within the free zone area is USD 25 up to USD 45 per sq. ft. (USD 225 up to USD 400 per sq. m.). Our firm can assist you while searching for your physical address. You can learn more about leasing and rental cost here. (This item will be required only after we obtain the initial approval from the authority.)
- Notarized and attested Power of Attorney appointing our firm as your legal representative, so that we can act on your behalf and/or on behalf of the shareholders (template will be forwarded by our firm).
- There are some activities which might require third-party/authority pre-approval—accordingly, additional cost and professional fees might be applicable.
- Also during the process, the authorities might require a few other documents.
- The procedure of processing the company setup would range from 2 to 4 weeks.
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Support Services Offered in UAE
FAR Consulting Middle East is one of the leading consulting companies in Dubai that deal with corporate business services Dubai. We assist people who have questions on how to open a business in Dubai.
We can provide the following services when you let us handle your affairs when it comes to company setup in Dubai:
- Applying and following up on behalf of the client until the collection of the Certificate of Business Registration (Trade License)
- Representing the client in front of the authorities
- Assisting the client in bank account opening
- Assisting the client in account opening with the Ministry of Labour
- Assisting the client in account opening with the UAE immigration
- Assisting the client in leasing a premise as an address for the business
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Business Setup Cost in UAE
Below is the estimated Dubai business setup cost with our own assessment of the fees. You can contact us for further information regarding this table of estimation.
UAE Mainland Estimated Official Cost for Study Case/New Business Setup Fees/Cost/Receiver Narration Cycle Cost (AED) Payment Comments Trade Name Reservation Govt. Agency One Time 610 100% Adv. View Initial Approval for Your Business Govt. Agency One Time 110 100% Adv. Local Citizen – Sponsorship Fee Your Business’ Local Sponsor Yearly 15,000 100% Later View MOA – Legal Translation Services Translation Services One Time 1,280 100% Adv. View Notarization of MOA Govt. Agency One Time 960 100% Adv. View Licensing & Certificate of Incorporation Fees (For Specific Business Activity) Govt. Agency Yearly 7,000 100% Adv. View File Opening – Immigration (Establishment Card) Govt. Agency One Time 860 100% Adv. File Opening – Ministry of Labour (Establishment Card) Govt. Agency One Time 2,053 100% Adv. E-Signature Card – Ministry of Labour Govt. Agency One Time 1,000 100% Adv. Farhat Office & Co.’s Fees – Your Business Registration Consultant’s Professional Fees
All Following Services are Included:
» MOA drafting – Arabic / English
» Power of attorney Drafting – A/E
» Side Agreement Drafting – A/EProfessional Fees/Farhat Office & Co. One Time 15,000 100% Adv. TOTAL 43,873 View ATTENTION – NOTEAll fees for government and related authorities are an estimation only. The exact government fees will be determined at the time of submission of the applications. We are obligated to provide our clients with all receipts of government and related agencies against the amount that will be paid. Every amount that will expense for your business registration will be supported by documents. In case of shortage, the client has to repay us. In case of excess, we have to refund the client.
Our professional fee covers consultation, drafting of legal documents, introducing reliable local citizen service-agent when required, assisting in document notarization from the local notary public, assisting in local bank account opening, and applying to the concerned authorities on your behalf.