August 17, 2020

Breaking Ground Initiating Business Setup for International Companies in the UAE

Branch of a Foreign Company | Dubai | UAE

Under Commercial Companies Act No. 8 of 1984 & Ministerial Decision No. 69 of 1989, a branch office of a foreign or international company is not a separate body. It only represents the parent company and carries out business under its name.

Generally, a branch office may endorse and sometimes market the products of its parent company, execute transactions and settle agreements in the name of its parent company, and provide services to its customers. In the United Arab Emirates, the Ministry of Economy and Commerce issues the license to a branch of a foreign company for business setup.Other than the foreign or international companies licensed by authorities to operate from the free zones in UAE, a foreign corporation can go ahead and carry on its Business activity in UAE or it can establish an office or its branch after issuance of a license by the Ministry of Economy and Commerce.Requests or application for business set up a branch office in the UAE must have the trade name, legal form, address of headquarters of the parent company and the name of the country where it carries its business activities, type of business activity intended to be carried out in the UAE, name of the national agent and case agent is a legal firm or entity, then its legal form, investment or capital, partners name, and their nationality and other related information.The initial step to open a branch of a foreign company in the United Arab Emirates including a branch office of an international business organization is to discover and appoint a local agent. Our experts at MSZ corporate services provider in Dubai and all over the United Arab Emirates offer company registration and business incorporation services.

First of all local agent needs to visit the Department of Economic Development (DED) to take the name reservation and then it needs to apply for initial approval from the Ministry of Economy and commerce for opening a branch office of the foreign office in Dubai or UAE.

Documentation Requirements for Initial Approval

For business set up a branch of the foreign company following documents may require by authorities:

  • Company formation as a branch of the foreign company requires registration and licensing application form with proof of reserved trade name of business organization.
  • A business set up as a branch requires a no-objection letter from the director’s sponsor.
  • A Photocopy of the director’s passport and national agent’s passport & identification of UAE naturalization.
  • Company formation as Branch requires approval from the Ministry of Economy & Commerce (to carry out commercial activities).
  • A duly Arabic translated Company’s Board of Directors’ Resolution authorizing the opening of the branch in UAE.
  • Business setup as branch requires Power of attorney issued in favor of the director of the business.
  • Memorandum of Association of the parent organization.
  • Parents Company certificate’s copy of Incorporation duly translated in Arabic.
  • Business setup requires approval by other Government authorities according to the nature of the activity.
Additional Documentation Required to Setup a Branch of a Foreign Company

After getting initial approval from concerned authorities in UAE following documents may be needed:

  • Receipt of an initial approval
  • All other documents that were submitted before authorities to get an Initial Approval.
  • Photocopy of office lease agreement including the number of plots.
  • The national agent’s original appointment contract duly authenticated by the Notary Public.
Benefits of Business setup as Branch Of a Foreign Company

By business set up as a branch in UAE, you can get unlimited benefits, however, few benefits are the following:

  • Business setup in UAE as a branch office offers state of the art developed transportation infrastructure.
  • Business setup in UAE as branch office provides free creativity system
  • The United Arab Emirates has a State-of-the-art telecommunications system.
  • The United Arab Emirates has Top international exhibitions and conference venues which will benefit greatly to your business setup.
  • The United Arab Emirates has high-quality offices for your business setup.
  • The United Arab Emirates offers Inexpensive Workforce and flexible Recruitment Procedures
  • Reliable energy, power, utilities, and other facilities
Our services:

MSZ corporate services provider can help you start your business as a branch office. With a stronghold on the legal system and business environment of UAE, we can help your business set up at very cost-effective rates. For inquiries please Click Here to Contact MSZ or Email to info@msz.ae