Are you looking to expand your business into the United Arab Emirates? Dubai is the gateway to the Middle East, offering foreign-owned companies access to the entire Gulf region. Establishing a Dubai branch enables international investors and entrepreneurs to enter Dubai’s thriving market and expand their businesses.
A Dubai branch operates as an extension of the parent company, meaning it must conduct the same business activities. To start operations, a business license is required.
Why Start a Dubai Branch?
Dubai is a top business destination with zero personal and corporate income tax, a stable currency pegged to the US Dollar, and business-friendly regulations. Additionally, the UAE government has introduced new Residence Visa policies, making it even more attractive for investors.
Dubai’s world-class infrastructure, quality of life, and connectivity to over 97 countries make it an ideal location for expanding businesses.
Steps to Open a Dubai Branch
Step 1: Partner with Dubai Business Service
The first step in setting up a Dubai branch is to partner with Dubai Business Service. Our experts handle trade license applications, company registration, and documentation to ensure a smooth setup process.
Step 2: Appoint a Local Service Agent (LSA)
A local service agent (LSA) is mandatory for branch offices, acting as a liaison between the UAE government and the business.
Step 3: Submit an Application
Foreign companies must obtain initial approval from the Ministry of Economy (MOE). Only an LSA can submit this application on behalf of the parent company.
Step 4: Obtain Ministry of Economy Approval
Once the Dubai Department of Economic Development (DED) approves the application, the MOE issues an initial approval certificate.
Step 5: Secure Approval from the UAE Federal Foreign Companies Committee (FFCC)
The FFCC must approve the branch office setup. The MOE forwards the application for additional approvals before issuing the final permit.
Step 6: Apply for a Trade License
After obtaining all necessary approvals, businesses can apply for a trade license from the DED. Companies must specify business activities, as only licensed activities can be conducted.
Step 7: Register with Authorities
Once the trade license is issued, the Dubai branch must be registered with the Ministry of Economy Companies Register and the Dubai Chamber of Commerce.
Required Documents for a Dubai Branch
To open a Dubai branch, companies must submit:
- Proof of trade name reservation (same as the parent company)
- Application forms for initial approval and trade license
- Memorandum and Articles of Association (MAA) of the parent company
- Certificate of Incorporation of the parent company
- Director’s passport copy
- No Objection Letter from the parent company
- Passports and naturalization book copies of the Local Service Agent
- Power of Attorney for the branch manager
- Parent company’s management board resolution authorizing the branch
Cost of Opening a Dubai Branch
The cost of opening a Dubai branch typically ranges between AED 80,000 to AED 100,000, depending on factors such as:
- Local Service Agent fees
- Government approvals and trade license fees
- Office space rent
- Company formation services
For an accurate cost estimate, consult Dubai Business Service for professional guidance.
Why Choose Dubai Business Service?
Setting up a Dubai branch involves complex legal procedures and requires multiple government approvals. Dubai Business Service simplifies the process by offering:
- Trade license and visa processing
- Company formation and registration
- Regulatory compliance assistance
Start Your Dubai Branch Today!
Expanding into Dubai is a strategic move for businesses looking to grow in the Middle East. Contact Dubai Business Service today and let our experts handle your Dubai branch setup seamlessly!
