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Branch Subsidiary Setup

Branch Office Setup

A branch office is an extension of its parent company, a subsidiary set up and the parent company remains responsible for any liabilities of the branch office, which allows you to establish yourself in the country while maintaining overall control of the business. You are not required to hand over any ownership, and the structure allows for a fast and simple way of establishing a presence in the country.

Tax advantages are UAE charges a 0% corporate tax rate on money earned by branches of foreign companies (except branches of foreign banks who pay 20% on annual income).

Branch Setup in Dubai

A Glance At The Key Benefits:

Low-cost entry into a new market, Easy administrative processes, and auditing, Different options of UAE branch offices.

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Branch Office Setup In Dubai

When setting up a branch office in Dubai mainland, there are no minimum share capital requirements. A branch office extends a business organization to 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. A branch office in Dubai is free to exercise the activities for which it owns the license and earns profits. 

The purpose of setting up a branch office of a foreign company in Dubai is to promote and market the products of the parent company, undergo business transactions, make its agreements with other businesses under the name of the parent company and offer services to its customers. 

The United Arab Emirates and Dubai, in particular, have swiftly developed into one of the most important centers of International Trade and Finance. With a cosmopolitan culture, stable politics, and a rapidly flourishing economy, it is the favored destination for Entrepreneurs and Professionals who were looking for new business setup, partnerships, and booming prospects. 

When you choose to open a branch in Dubai, UAE, you must consider that, the branch office will be required to complete the same activities of the foreign company; for these activities, the parent company must apply for the necessary licenses with the Dubai authorities; the branch in Dubai is not considered a separate legal entity from the foreign company; the parent company will be liable for the obligations and debts of the Dubai branch office, from a taxation point of view, the branch office will be taxed on the income earned in the UAE. The Dubai branch office must bear the same name as the parent company.

Branch Office Setup in Dubai

The following steps are Performed by Our Experts to Set Up a Branch Office in Dubai:

  • Handling documentation formalities.
  • Reserve a trading name by the Department of Economic Development.
  • Apply for initial approval from MOE.
  • Visa processing and stamping.
  • Once the Ministry of Economy approves the application, apply for a license.
  • Arrange a labor card and visas for employees.
  • Register as Dubai Chamber of Commerce and Industry.
  • Opening bank accounts.
  • Find a proper office location.
  • Getting approvals.
  • Kick start your business.
  • Find a local service agent.
  • Drafting of the Local service agent agreement.
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