A representative office in Dubai commences one or more of the following activities. As per the Central Bank’s Board of Directors Resolution, Number 57/3/1996 dated 14/4/1996 regarding Representative
Offices describe a representative office as:
- A representative office is representing the financial institution and it is licensed to deal inside the country which is including contacts on its behalf with concerned authorities as well as endorsing its services in the local market of the country.
- A representative office is providing the head office of a licensed financial institute with data or information relating to economic developments in the country.
- A representative office is also providing customers of the licensed financial institute with information on the local market.
- A representative office is providing data to a local agency, which intends to develop its business at countries wherein the licensed institutions conduct their business.
- A representative office providing customers with consultation services on banking, finance, and investment.
A representative office should represent a financial institution or bank, which is incorporated outside of the country, holding a valid license obtained from governing authorities. Such banks or financial institutions are also subject to the direct supervision and scrutiny of the governing authorities at the country of origin and/or the head office of the institute as per the laws of the country. Dubai is a great place for business setup as a representative office of a foreign company. There are many reasons to set up a representative office like a new horizon of opportunities in a business-friendly environment with flexible regulations and more. If you are planning to set up a representative office in Dubai than opening a representative office of your existing company is a wonderful idea and we at MSZ corporate services provider can help you set up your office in Dubai. When opening a representative office, various questions come to mind that is especially because of the specifics of the corporate law of the United Arab Emirates. Sometimes laws in different emirates offer the company registration in different types of companies and often having distinct statuses and possibilities for permission for various activities.
At present, there are a large number of companies present in Dubai, the United Arab Emirates from different countries each with its specialty. A substantial number of those companies are the representative office of foreign companies or institutes and their number continues to grow with time.
Activities of a Representative office:
A representative office in the UAE does not participate in sales, services, or any type of commercial activity. It only endorses, promotes, and markets the activities of its parent company. It usually gathers information and solicits orders and projects which are to be performed by the head office of its parent company.
Sponsor or National Service Agent:
Every Trade Representative office needs a local sponsor or service agent. The local sponsor has no equity contribution or liability to the business. Also, the local sponsor cannot represent the branch office or include it in its management.
Guarantee from Bank:
As a Trade Representative Office, you would have to deposit a refundable bank guarantee of AED50,000 for the period of your license and it cannot be withdrawn before or used as working capital.
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