Foreign Branch Company-International

UAE has become an attractive heaven for foreign companies to have a business setup and do an company formation in Dubai or in any part of the UAE. The government has made flexible laws and regulations to enhance, promote and provide the best infrastructure for foreign companies to create a branch in the UAE. UAE has become a global international business hub for the world connecting East and West business districts. This is the reason so many foreign companies have opened their headquarters here in the UAE. As a foreign company, you can legally open a branch office or representative office here in the UAE. Branch Offices (BOs) and Representative Offices (ROs) are at the lowest end of the three tier system of business entities permitted by UAE law. They don’t have their own legal identity and are therefore considered as an extension of the foreign corporation, which is still responsible for their actions. The foreign parent is under direct liability for the conduct of its ‘branch’, and in UAE law, director’s duties continue to apply even after incorporation. When foreign owned, a branch office has the same commercial and company law status as a UAE-owned company. Branches have no legal personality and cannot own or convey property. The limits of liability for branches are those of the foreign company itself.

A representative office is a request to establish a branch in the UAE without any physical presence. Most of the foreign companies dealing with Company Law requiring at least one director must be accompanied by the name and program of the law or official, according to which it is governed, and a statement that the entity agrees to remain in force in relation to its obligations and laws of the state. The main benefit is that the Representative Office would be subject to no UAE source income tax or any other tax on income earned in the UAE. The Representative Office would also have no obligation to maintain audit books, accounts and other records, which could prove useful to many companies that do not have a physical presence in the UAE. A Representative Office is a cost effective means of establishing a business presence in the UAE Business landscape. An Representative Office functions at a lower cost than an LLC due to its close relationship to the parent company. Holders of these licenses are able to conduct business directly in line with the parent companies’ business plan, subject to local market requirements.

The National Service Agent (NSA) has to be established in the UAE, will be held jointly and severally liable with the foreign company for all obligations under the Law, must be a UAE national or, at least, a 100% UAE national-owned entity. It will be responsible for providing services to both branches and regional offices (RO). Each branch of a foreign company uses their own trade name. Activity of the branches and ROs is limited to selling, distributing and supplying goods of the foreign company, in addition to conducting non-financial transactions. The Unified Commercial Registration (UCR) process is an initiative undertaken by the Government of UAE to manage companies’ commercial activities. The UCR and related services are being offered by the Dubai Chamber of Commerce and Industry (DCCI) and Emirates NBD Bank PSC.

What are the key advantages of opening a Foreign company, foreign representative or foreign branch in the UAE?
  • In the UAE, international companies will maintain 100 percent foreign ownership.
  • A foreign company does not need to show that it has been in operation for more than two years in its home country (although some Free Zones do). Anywhere within the UAE, including Free Zones, the company can legally conduct the approved operation in its license.
  • There are no limits on where the business will rent or purchase office space.
  • Any paid-up capital provisions have been indefinitely waived by the government.
  • Unlike individual local partners who regularly travel during the summer months, Sovereign has several signatories who are available all year.Our Vigor business setup and company formation services have in-house local sponsors who can help and guide you over phones and meetings 24/7.
What are the basic requirements and documents required to establish a foreign company’s representative or Branch office?
  • Certificate of incorporation (or equivalent), memorandum and articles of association, and a certificate of good standing (where one can be obtained) from the parent company’s home jurisdiction.
  • A board resolution authorizing the opening of the Branch or RO, appointing a general manager and granting the general manager power of attorney; and confirming that the corporation assumes responsibility for the office's liabilities until it is formed in the UAE.
  • The previous 2 years bank statement which needs to be audited and verified.
  • A letter stating all your main business activities, operations of your company.
  • Original & copies of passport for the General Manager.
  • Residence or utiliy bills of the General Manager as proof of address.
  • Resume for the General Manager appointed.
  • Bank reference letter for the General Manager

Only English and Arabic documents and application forms are accepted by the local authorities. As a result, an official interpreter must translate all documents into Arabic. After receiving approval from the Ministry, a copy of a appointed lease of office space in the UAE must be sent to the Dubai Economic Department. Therefore you require a National Service Agent (NSA) who can cater to all these requirements.

Why do I need your company to setup a branch in UAE?

At Vigor Business Setup and Company Formation services, A business consultant can definitely give you a detailed explanation in which you can grasp the benefits on how to start your own business in UAE. Opening a branch office in Dubai, setting up a branch, or setting up a representative office in UAE is just one of the projects that they can discuss and handhold with you. When you say that you want to know the information regarding company registration UAE or company registration in dubai, they can tell you how to establish a company set-up here along with getting your final trade license. Learn more about the choices of business set-up and then make an informed decision if you want to know how to form a company setup in UAE. Vigor Business Consultants will offer you expert assistance and give you professional advice on the laws and regulations in the UAE. With our company formation and business setup knowledge and guidance, setting up a branch or representative office in UAE will seem less of a daunting task so it can help you decide and weigh in things.