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Expanding your business operation on foreign soil is one of the profitable steps in your companies growth. It’s a long term investment that leads your products or services to the other parts of the country. And what’s better than having a branch office in the UAE, where you can meet all the business giants in one place. Opening a branch of business is one thing that every business person conduct here in the UAE.
A branch office is an offshore company that is located abroad. The purpose of a branch office is to market and promote products/services of the parent company into the current region or other regions. It also performs transactions and finalizes agreements in the name of the parent company. However, it is not allowed to perform any activity which is not permitted by the parent company. A branch office in Dubai is an ideal choice for regulated industries like Banking, Financial Services and Insurance (BFSI). The ownership of the branch company belongs to the parent company and is licensed under the same name.
A branch office extends a business organization to the other parts of the world. Opening a branch office in Dubai is more convenient because they can make profits compared to liaison offices and can engage in commercial activities.
As branch office is not considered as a separate legal entity, so basically it provides complete ownership. A branch office in Dubai doesn’t require a 51% local Shareholder. Instead, you’re required to have a Local Service Agent. The service agent doesn’t have any right in the branch, however, they provide services like visa application, documentation, legal support, etc.
A branch office formation in Dubai can rent an office space in one of the country Free zone regions or mainland.
A mainland company can perform its business trade with free zone companies. In general, branch office situated in free zones is only allowed to perform business trade within the free zone or outside the UAE. It becomes possible to trade with mainland companies if you acquire a local distributor.
To set up a branch office in Dubai, the following steps are performed:
Setup Dubai Business services of branch office formation are derived from years of experience with public departments. We can assist you with your application documents, Identify the right local service agent, obtaining approvals from government entities, support for opening a corporate bank account, and assisting with branch office location and business setup. We at Setup Dubai Business have our expert team of Management Consultant that you help your firm to set up their office in Dubai. If you have any query regarding accounting services and company formation, please send us a quick inquiry. Drop-in your details and one of our representative will call you back.
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