UAE Local Company Branch Office
A business office in UAE is categorized as branch office or representative office according to the type of a company it represents. Herein, we are going to run through the difference between branch offices and representative offices and what differentiates one from another and can help you identify easily what kind of business setup in UAE or company formation will best suit your needs. Some of the questions frequently asked are whether there is a difference between opening a branch office in Dubai or a representative office in Dubai. Some even put up an illegitimate representative office in order to gain a good market share. This scenario created loss among businesses that were trying to do business legitimately. For this reason, it is essential to know the difference between these two types of offices. Since more businesses are tending to expand their market reach globally, the term representative office is popping up in conversations quite often. The two terms sound alike, but in reality they are as different as night and day. It is necessary to know what representative offices are for business operations here in Dubai and worldwide.
In a nutshell, a representative office is registered with the relevant department of the UAE government (Dubai Economic Department or any other department) whereas a branch office is one that has been registered with the Dubai authorities. A representative office does not require registration if carried out under company sponsorship under the same sponsor as the main company. Representative office is a smaller version of branch office. It can be established in UAE by non-profit organizations, foundations and international corporations that are eligible to register under Dubai Chamber of Commerce. A business entity that is a branch of a company may also be considered as the affiliate of the parent company. As an affiliate, it is more business-oriented than as a branch and should be registered separately from the parent company with its own registration number or share holders. The legal structure can vary according to the location where it is being registered and licensed to operate. The parent company can have a proportional share of ownership in the branch and must have a controlling ownership in at least one parent company. This type of ownership is common with many companies who wish to work in different countries but must keep their activities under the same brand. A multi-jurisdictional approach is always a choice you can make. Our Business Setup and Company formation experts can devise a structure through which you can maintain ownership with operational flexibility, while maintaining a presence in other countries or jurisdictions.
An operating company has to be different in every field of business. For example, if you are a manufacturer and want to open another branch in Dubai, then you have to know all the applicable rules and regulations as regards registration procedures, obtain any necessary licensing and approvals, and even may require a bond. The same principles apply for opening a branch office for your local firm, which may or may not need an operating certificate depending upon the nature of business conducted by that organization. Different licenses are required when conducting various activities in different zones, such as in mainland or in freezone. You will first need to fill out the application forms that would be assessed by the Department of Economic Development and are approved on the same day. The fees and charges for opening a branch company vary from location to location and there is no prejudice in finding an affordable Dubai registered company this way. To establish a branch office of an existing UAE company in Dubai has always been more business-friendly. Compared to the process of setting up a new company, which involves hiring of new staff, shifting and getting all permits and licenses, starting a branch in Dubai is less expensive and time consuming. Businesses that want to enter into the uae market can hire employees for local UAE companies and still have their company’s identity preserved. However, you would need a UAE national as your local service agent to who will be associated with this company. However, he will have no rights or role in your company and you can still do the business freely at your own terms and conditions by paying a small fee to the UAE National local service agent.
We have prepared a quick list of documents which are mandatory and required to process your branch. These include but are not limited too:
- A verification of your reservation of trade name, can be the same as your parent company or different, subject to approval.
- The chosen activities for the specific branch you wish to open.
- You and your shareholder’s passport copies to verify the identity.
- The appointed manager’s passport copy and resume may be required as well.
- A ejari is required as well which is basically the tenancy contract of your physical office, warehouse and etc. Incase your wish to have only virtual office, our team will be available to readily help you in meeting all the requirements.
- Power of Attorney which is mandatory and you have to appoint us to process on your behalf. This document will be attested and notarized for your official records and a copy will be provided to you and your shareholders.
- A pre-approval is required from Dubai Municipality, Dubai Economic Department and so on depending on the business activities and trade license you create.
Upon submitting all the documents to us, it may take between 2 to 4 weeks time. We have a fast track service and VIP service which you can avail by getting in touch with us.
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.