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Are you considering expanding your business globally by opening a branch office in Dubai? As a foreign company, establishing a branch allows you to create a physical presence in one of the world’s most dynamic business environments without forming a completely new entity. Dubai’s strategic location at the crossroads of Europe, Asia, and Africa makes it an ideal gateway for international expansion into the Middle East and beyond.
A branch office operates as a direct extension of your parent company, sharing the same legal identity, name, and organizational structure. This arrangement offers significant advantages: you maintain full ownership, leverage your existing brand recognition, and benefit from streamlined operations. According to the Dubai Chamber of Commerce, over 51,561 new companies registered during the first nine months of 2024, demonstrating the emirate’s continued appeal to international businesses.
Whether you’re exploring business setup in Dubai for the first time or expanding an existing international operation, this comprehensive guide covers everything you need to know about branch office setup in Dubai including requirements, costs, timelines, and step-by-step procedures.
A branch office in Dubai is a legal extension of a foreign parent company that allows international businesses to operate in the UAE market. Unlike forming a new company in Dubai, a branch is not a separate legal entity. Instead, it functions under the parent company’s umbrella, using the same trade name with “Branch of [Parent Company Name]” as its official designation.
The branch shares the parent company’s legal identity. All contracts, liabilities, and obligations are the responsibility of the foreign parent company, not a separate UAE entity.
Foreign companies retain 100% ownership of their branch office. No local partner or shareholder is required, though mainland branches need a UAE national service agent for administrative purposes.
The branch can conduct the same commercial activities as the parent company, provided these activities are licensed in the UAE. Activities must align with the parent’s registered business scope.
Establishing a branch office in Dubai offers substantial advantages for foreign companies seeking Middle Eastern market access. Here’s why thousands of international businesses choose Dubai for their regional headquarters:
Dubai sits at the intersection of Europe, Asia, and Africa, providing access to markets covering over 2 billion consumers. The city’s world-class ports and airports enable efficient logistics and distribution across the GCC, MENA region, and Indian subcontinent within a 4-hour flight radius.
The UAE offers competitive tax rates with 9% corporate tax only on profits exceeding AED 375,000, and no personal income tax. Free zone branches may qualify for 0% corporate tax on qualifying income, maximizing your profit retention.
Opening a branch office is typically less expensive than establishing a completely new subsidiary. You leverage existing corporate infrastructure, avoid minimum capital requirements, and benefit from streamlined registration processes that reduce setup costs significantly.
Dubai provides exceptional telecommunications, logistics, and transportation infrastructure. From the busiest international airport to advanced fiber-optic networks and modern office spaces, every business need is comprehensively supported.
Dubai’s diverse population includes professionals from over 200 nationalities, providing access to multilingual talent with international business experience. The city’s quality of life attracts skilled workers, making recruitment for your branch office straightforward.
The UAE government continuously improves ease of doing business through digital services, simplified procedures, and investor-friendly policies. Branch offices benefit from straightforward PRO services and efficient government interactions.
When planning your branch office setup in Dubai, you’ll need to choose between two primary jurisdictions. Each offers distinct advantages depending on your business model and target market:
A mainland branch office operates under UAE Commercial Companies Law and the Department of Economy and Tourism (DET). This option provides unrestricted access to conduct business anywhere in Dubai and across the UAE without geographic limitations.
Ideal for: Companies seeking direct access to the local UAE market, participation in government tenders, and flexibility in choosing office locations throughout Dubai.
Free zone branches operate within designated economic zones like Jebel Ali Free Zone (JAFZA), DMCC, Dubai Internet City, or Dubai Media City. Each zone specializes in specific industries and offers tailored benefits.
Ideal for: International trading companies, regional headquarters, technology firms, and businesses focused on import/export rather than local UAE retail sales.
The branch office registration process involves several stages, from initial planning to final licensing. Here’s a comprehensive walkthrough of establishing your foreign company’s branch in Dubai:
Gather all required documents from your parent company including certificate of incorporation, Memorandum and Articles of Association, audited financial statements (typically last 2 years), and board resolution authorizing the establishment of a Dubai branch. All documents must be notarized and attested by the UAE Embassy in your home country.
Designate a branch manager who will oversee operations in Dubai. For mainland branches, you must also appoint a UAE national service agent who handles administrative liaison with government authorities. The service agent receives an annual fee but has no ownership rights or involvement in business operations.
File your branch registration application with the UAE Ministry of Economy along with the service agent agreement. The Ministry reviews your parent company credentials and proposed business activities. This approval is mandatory before proceeding to the local economic department.
Reserve your branch’s trade name with the Dubai Department of Economy and Tourism. The name must include “Branch of [Parent Company Name]” and comply with UAE naming conventions. Once approved, this name reservation is valid for a limited period during which you must complete registration.
Obtain a physical office that meets DET requirements. Options include traditional office leases, serviced offices, or virtual office arrangements (where permitted). The tenancy contract or Ejari registration is required for license issuance. Office size requirements vary based on business activities and visa quota needs.
Submit all documentation to the Department of Economy and Tourism for initial approval, including the Ministry of Economy license, tenancy contract, and all attested parent company documents. The department reviews your application and issues initial approval upon satisfactory verification.
Register your branch with the Dubai Chamber of Commerce and Industry. This membership is mandatory for all commercial entities operating in Dubai and provides access to business services, trade certificates, and networking opportunities essential for your operations.
Upon completing all approvals, pay the required fees to receive your official trade license. This license authorizes your branch to legally conduct business activities in Dubai. The license is typically valid for one year and must be renewed annually.
Register your branch with the Ministry of Human Resources and Emiratisation to obtain an establishment card. This enables you to apply for employee visas, labor cards, and work permits. Submit visa applications through the General Directorate of Residency and Foreigners Affairs (GDRFA) for your staff.
Establish a corporate bank account in Dubai to manage your branch’s finances. UAE banks require your trade license, shareholder documents, and KYC documentation. Our consultants can introduce you to banking partners and facilitate the account opening process.
Our licensed consultants handle the entire registration process, from document preparation to final license collection.
Proper documentation is critical for successful branch office setup in Dubai. All foreign documents must be notarized, legalized, and attested by the UAE Embassy in your country of origin. Here’s what you’ll need:
Certificate of Incorporation – Original or certified copy proving legal establishment of the parent company.
Memorandum & Articles of Association – Company constitution documents detailing ownership structure and business scope.
Board Resolution – Official decision authorizing establishment of Dubai branch and appointment of branch manager.
Audited Financial Statements – Typically last 2 years of audited accounts demonstrating financial stability.
Power of Attorney – Legal authorization for branch manager to act on behalf of parent company in UAE.
Passport Copies – Clear copies of passports for all directors and the appointed branch manager.
Manager’s CV – Professional resume of the designated branch manager outlining relevant experience.
No Objection Certificate – If the manager is currently employed in UAE, NOC from current employer.
Service Agent Agreement – Contract with UAE national service agent (mainland branches only).
Tenancy Contract – Office lease agreement registered with Ejari (Dubai rental registration system).
Initial Approval Certificate – Preliminary approval from Ministry of Economy.
Trade Name Reservation – Confirmation of approved branch name from DET.
Important Note: Document attestation requirements may vary based on your country of origin. Some countries have bilateral agreements with the UAE that simplify the legalization process. Our team provides guidance on specific attestation requirements for your jurisdiction and can connect you with authorized attestation services.
Understanding the costs involved in Dubai business setup helps you plan your budget effectively. Here’s a comprehensive breakdown of typical expenses for establishing a branch office in Dubai:
Costs vary based on business activities, office location, number of visas required, and specific free zone selected. Contact our consultants for a personalized quote based on your requirements.
When expanding to Dubai, foreign companies often debate between establishing a branch office or forming a subsidiary. Understanding the key differences helps you make the right choice for your business strategy:
Not sure which structure suits your needs? Our business consultants can analyze your specific situation and recommend the optimal legal structure for your Dubai expansion. Learn more about LLC formation in Dubai if a subsidiary might be more appropriate.
Avoid these frequent pitfalls that can delay your branch office registration or create complications later:
Documents not properly notarized, legalized, and UAE Embassy attested are rejected, causing significant delays. Ensure complete attestation chain before submission.
Selecting a free zone when you need mainland market access (or vice versa) limits your business potential. Assess your target customers before deciding.
A poor service agent can hinder government processes and renewal procedures. Partner with reputable, established agents recommended by experienced consultants.
Document attestation, ministry approvals, and bank account opening take longer than expected. Start preparations at least 2-3 months before your intended launch.
Learn more about common business setup mistakes in Dubai and how to avoid them.
A branch office in Dubai is an extension of a foreign parent company that operates under the same name and legal identity. Unlike a subsidiary, it is not a separate legal entity but acts as a representative of the parent company to conduct business activities in the UAE.
Branch office setup costs in Dubai typically range from AED 25,000 to AED 50,000 for mainland registration, including license fees, service agent fees, and initial approvals. Free zone branch offices may cost between AED 15,000 to AED 40,000 depending on the zone selected. Contact us for a personalized quote.
Required documents include: parent company certificate of incorporation, Memorandum and Articles of Association, board resolution authorizing branch establishment, audited financial statements, passport copies of directors and manager, and a power of attorney for the branch manager. All documents must be attested by the UAE Embassy.
The branch office registration process typically takes 2-4 weeks for mainland setup and 1-2 weeks for free zone registration, assuming all documents are properly prepared and attested. Document preparation and attestation may add additional time.
Yes, foreign companies can open a branch office in Dubai. The branch can operate the same activities as the parent company. Mainland branches require a UAE national service agent for administrative purposes, though no local partner ownership is required.
For mainland branch offices, you need a UAE national service agent (not a sponsor) who assists with government procedures but has no ownership stake or involvement in business operations. Free zone branches do not require any local agent.
Yes, branch offices can hire employees and sponsor their visas. The branch must register with the Ministry of Human Resources and obtain an establishment card to employ staff and process work permits. Learn more about UAE visa and labor laws.
A branch office is an extension of the parent company sharing the same legal identity and liability, while a subsidiary is a separate legal entity with its own identity. Branch offices are simpler to establish but have unlimited parent company liability, whereas subsidiaries offer liability protection but require more complex setup procedures.
As of 2023, UAE introduced a 9% corporate tax on profits exceeding AED 375,000. Branch offices are subject to this tax. However, free zone branches may qualify for 0% tax rates if they meet qualifying income conditions.
A branch office can perform the same commercial activities as its parent company, including trading, services, consulting, and contracting. The activities must be specified in the branch license and align with the parent company’s registered business activities.
Since 2010, Setup Dubai Business has been helping international companies establish their presence in the UAE. Our licensed consultants bring years of experience working with government authorities and understand the nuances of branch office setup in Dubai.
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We handle everything from initial consultation and document attestation guidance to license collection and bank account opening. You focus on your business while we navigate the bureaucracy.
We connect you with reliable, vetted UAE national service agents with proven track records. Our partners understand the importance of responsiveness and professionalism.
Our relationship doesn’t end at license issuance. We provide PRO services, license renewals, visa processing, and accounting services to keep your branch compliant.
No hidden fees or surprise charges. We provide detailed cost breakdowns upfront so you can budget accurately for your Dubai expansion. View our package comparisons.
Get a free consultation with our branch office setup experts. We’ll assess your requirements and provide a customized plan for your Dubai expansion.
Have questions about branch office setup in Dubai? Our consultants are ready to assist you with personalized guidance for your business expansion.
Phone: +971 4 344 7020
Email: info@setupdubaibusiness.com
Office: Dubai, United Arab Emirates
for more details call +971 55 378 8000 or e-mail us in info@ebsuae.com
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