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Setting Up a Branch Office in Dubai

branch office in dubai

Poised at the intersection of East and West, Dubai is a dazzling beacon of growth and prosperity in the business world. This international commercial nexus, fuelled by its strategic location and visionary leadership, presents an abundance of opportunities for global enterprises to broaden their horizons. Indeed, as Dubai unfurls an ambitious economic plan estimated at a whopping $8.7 trillion for the next decade, the time has never been better for international companies to carve their niche in this dynamic city. One effective strategy embraced by several international firms is establishing a branch in the beating heart of Dubai. Here’s your guide to understanding and navigating this route to global expansion.

A branch office serves as an extension of the parent company situated in a different geographical location. It operates under the parent company’s legal identity and performs the same business activities. Establishing a branch office in Dubai offers foreign businesses the opportunity to conduct operations under their existing brand identity, thus leveraging Dubai’s burgeoning market.

Perks of Establishing a Branch Office in Dubai

Access to Flourishing Markets: A branch office in Dubai serves as a conduit for overseas firms to directly access the flourishing UAE market and the expansive Middle East region, bolstering their growth and reach.

Operational Autonomy: Unlike a representative office that is confined to marketing roles for the parent company, a branch in Dubai enjoys operational autonomy and can undertake income-generating activities in line with its parent company.

Upholding Brand Uniformity: Operating under the same banner and corporate identity as the parent entity, a branch in Dubai ensures brand consistency and familiarity are maintained.

No Capital Requirements: The process of establishing a branch in Dubai doesn’t demand any minimum capital, making it an economically feasible option for business expansion.

The Procedure to Establish a Branch Office in Dubai

Initial Approval from the Ministry of Economy (MoE): The journey begins with obtaining preliminary approval from the MoE. Your application should encapsulate detailed information about the parent entity and its proposed business activities in Dubai.

Registration with the Department of Economic Development (DED): Once you’ve obtained initial approval, your next move should be to register your branch with the DED in Dubai.

Obtaining a Commercial License: Upon successful registration, the next step is to apply for a commercial license from the DED, which enables the branch to carry out business activities in Dubai.

Appointment of a National Service Agent (NSA): In line with the rules, each foreign branch office is obliged to appoint a UAE national as an NSA. The NSA’s responsibilities are primarily administrative, and they do not command any operational control or ownership of the branch.

Opening a Corporate Bank Account: After securing the commercial license, the office is permitted to establish a corporate bank account in Dubai. This account aids in managing the office’s business transactions.



How Can Choose UAE Help

The journey to establish a branch office in Dubai can be intricate, necessitating a thorough understanding of the local laws and business customs. At Choose UAE, we aim to simplify this journey for you. Our team of seasoned professionals can provide end-to-end assistance, from securing initial approval to procuring office space, ensuring a seamless setup of your business in Dubai. Reach out to us today to understand how we can facilitate your business’s expansion into the dynamic Dubai market.

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