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The branch of a foreign company in UAE can conduct the same activity as the parent company, given that the direct industrial and commercial activities will be subject to the approval of competent authorities.
A simple way for foreign companies to get 100% foreign ownership under the Commercial Company Law in the United Arab Emirates is to incorporate a Branch or Representative Office that permits 100% ownership by the parent company. These forms don’t have a separate lawful identity and are treated as an expansion of the foreign company that stays liable for their activities.
A Branch is allowed to engage in commercial activity in the United Arab Emirates and to get profits. It is licensed for the reasons set out in its commercial license and can just engage in activities like those carried on by the foreign company in its home jurisdiction.
A Representative Office (RO) isn’t allowed to get the profits inside the UAE and its activities are limited to promoting or marketing the services and products of its foreign parent company in the UAE.
Both the Branches and Representative Office (RO) should operate under the authority of commercial registration and the license in the name of the foreign company, and both are required to appoint a Local Service Agent (LSA), which must be a UAE national individual or a 100% UAE national-owned.
What are the Documents Required to Setup a Branch of a Foreign Company in UAE?
The following documents are required must be attested and legalized at the UAE Embassy/Consulate from the country of origin of the mother company.
- Certificate of Registration/Incorporation
- Certificate of Good Standing of the company
- Memorandum and Article of Association
- A company’s Board Resolution calling for the establishment of a branch in UAE and guaranteeing full financial commitment and appointment of the following, all notarized and attested by the UAE Embassy:
•Appointed Manager / Representative
•Appointed Negotiator / Legal Representative
•Power of Attorney for Manage
- Manager passport copy and legal representative
- Two years audited financial report of the Mother company
- CV of the manager of the UAE Office (Attestation not required)
- CV of the Directors of the Mother company (Attestation not required)
- Mother company Profile
- NOC from the present sponsor if the manager is on UAE Residence visa
IMPORTANT NOTE:
All the documents of the foreign companies must be attested by the consulate of the United Arab Emirates in the respective foreign company as well as the Ministry of Foreign Affairs in the UAE.
What is the timeframe to set up a branch of a foreign company in UAE?
It takes 3-5 working days after receiving the documents from your end to get a license.
What are the advantages of setting up a branch of a foreign company in UAE?
- 100% foreign ownership
- Foreign companies are not required to show over 2 years of incorporation as well as business experience in their home country. (But some Free Zones in UAE require longer)
- The company can legally conduct the activity that is approved in its license anywhere in the UAE, including Free Zones
- There are no restrictions on the area where the company can buy/rent office premises
- The authority has permanently waived any paid-up capital necessities.
Branch of a foreign company in UAE – FAQ
What is a branch of a foreign company?
The branch of a foreign company in UAE can conduct the same activity as the parent company, given that the direct industrial and commercial activities will be subject to the approval of competent authorities.
What are the approvals required for the registration of this legal form?
The Ministry of Economy (for the companies that wish to practice industrial and commercial activities only). No such approval is required for professional activities.
What is the role of the Local Service Agent?
The role of the Local service Agent is restricted to liaising with authority offices on administrative functions. The Local Service Agent is paid a yearly fee for providing such services.
Speak with one of our business setup consultants who will guide you on the right legal structure based activity of the business plans to undertake in the UAE, as well as its intended markets. We at MSZ corporate services provider will assist you in set up a branch of a foreign company in UAE. don’t hesitate,Click Here to Contact MSZ or Email to info@msz.ae.
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Can MSZ help with registering products in the UAE & Saudi Arabia?
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