Set Up a Branch or Representative Office in Dubai
Looking to expand your business into Dubai?
We specialize in helping international companies establish a Branch Office or Representative Office in the UAE.
Whether you’re planning to open a fully operational branch or a non-transactional representative office, our team ensures a smooth and compliant setup process in line with UAE regulations.
Set Up a Branch or Representative Office in Dubai
Why Choose a Branch Office Instead of a Mainland Company?
Setting up a Dubai Mainland Company is a popular option for foreign investors due to its numerous advantages. However, it does come with a significant limitation: foreign investors can only own 49% of the company, while 51% ownership must be held by a local sponsor.
Fortunately, there’s a better alternative—establishing a Branch Office in Dubai. This allows foreign businesses to retain 100% ownership while still operating in the UAE market.
Branch Office in Dubai: A Smart Business Move
For entrepreneurs looking to tap into Dubai’s thriving economy, a Branch Office offers the best of both worlds: access to the local market without surrendering control. This structure allows your parent company—whether based in the UAE or abroad—to remain fully liable and in control of the Dubai branch.
A branch office functions as an extension of the parent company, carrying out similar business activities, and operating under the same legal identity. It can generate profits, but only within the scope of the parent company’s licensed activities.
Types of Branch Offices in Dubai
There are four primary types of branch setups in the UAE:
1. Corporate Shareholder Office
Parent company can be UAE-based or international.
Shared ownership among corporate and individual shareholders is allowed.
Offers flexibility in shareholder structure.
2. Branch Company
Most common structure.
Parent company retains 100% ownership.
No share capital required.
Uses parent company’s legal documents.
3. Representative Office
Most cost-effective option.
Cannot conduct commercial business or generate profit.
Can only promote and market services of the parent company.
Ideal for brand awareness and market presence.
4. Subsidiary
Treated as a separate legal entity from the parent.
Must be managed from within the UAE.
Responsible for its own liabilities and operations.
Key Considerations Before Establishing a Branch Office
Must perform only the same activities as the parent company.
Requires licensing through the Department of Economic Development (DED) and Ministry of Economy.
Parent company remains legally responsible for all debts and obligations.
Profits earned in the UAE are subject to local taxation.
Steps to Open a Branch Office in Dubai
Appoint a Local Service Agent (LSA)
– Required for administrative representation (no ownership or control).Reserve a Trade Name & Obtain Initial Approval
– From DED and other relevant authorities.Submit Formal Application
– Including parent company documents, board resolution, and power of attorney.Ministry of Economy & Committee Approval
– Secure clearance for foreign company registration.License Issuance
– Final license issued by the DED.Office Space & Administrative Setup
– Secure office location and complete required registrations.Commercial Registration
– Finalize registration with relevant business and commercial bodies.
Benefits of Setting Up a Branch Office in Dubai
✔ 100% Foreign Ownership
✔ No Local Shareholding Required
✔ Direct Market Access
✔ Lower Setup & Operational Costs Compared to a New Entity
✔ Tax Advantages
✔ Simplified Legal Framework
✔ Streamlined Operations via Existing Parent Company Documents
Our Services – How We Help You
We provide end-to-end support for setting up a branch or representative office in Dubai:
✔ Assisting with government approvals and licensing
✔ Preparing and reviewing legal documentation and MOA
✔ Helping you find a reliable Local Service Agent (LSA)
✔ Supporting bank account setup
✔ Office space selection and rental assistance
✔ Managing all administrative and legal formalities
Ready to expand your business to Dubai?
Let us simplify the process for you. Contact us today to begin your journey into the UAE market with confidence and compliance.
Sohi Pro Services is your trusted partner for business setup in the UAE. We specialize in company formation, licensing, and consultancy across all major free zones and mainland jurisdictions. Let us simplify your journey to success in the UAE.
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