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Branch

Onshore

Branch FormationA company in this category is formed to act as the branch or representative of a foreign company. The commercial company law stipulates that such companies must have a 100% foreign ownership. However, a local service agent must be appointed. Only a UAE national or company's 100% owned by UAE national can be a service agent. The local service agent will not be involved in the activities of the foreign branch, but assist the company in acquiring visas, labor cards etc. The service agents are paid a lump sum and/or profits on turnover. In general, branches and offices of foreign commercial companies are not licensed to engage in importing activity except for re-export or in the case of products of a highly technical nature.

Documents required for Initial Approval

  • Registration and licensing application, as well as proof of reserved trade name.
  • Photocopy of the director's passport, and no-objection letter from the director's current sponsor.
  • Photocopy of the national agent's passport & UAE naturalization identification.
  • Approval from the Ministry of Economy & Commerce (commercial activities only).
  • The Company's Board of Directors' Resolution authorizing opening of the branch in Dubai, duly translated into Arabic.
  • Power of attorney issued in favor of the director.
  • Main company's Memorandum of Association.
  • Photocopy of the main company's certificate of Incorporation duly translated into Arabic.
  • Approval issued by other Government authorities according to the type of activity.

Documents required after getting the Initial Approval

  • Initial Approval receipt
  • All documents submitted before in order to get the Initial Approval.
  • Photocopy of office lease including the plot number.
  • The original appointment contract of national agent duly authenticated by the Notary Public (Engineering Consultancy Companies are excluded).

The following are the steps involved in the formation of a branch/representative firm.

  • Initial Approval from licensing department of the economic department
  • Attestation of Service Agreement by a Notary of Court
  • Inspection & registration of office space of company
  • Getting approval from the economic department for entry into the commercial register
  • Once approval is granted, the company will be entered in the commercial register. The license will then be issued by the Economic Department.
  • Registration of the firm in Chamber of Commerce and Industry

GBS will be able to help you incorporate your business in UAE. Our dedicated teams will help and support you right from preparation of relevant documents to obtaining license.

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal, tax or other professional advice. We do not accept any responsibility, legal or otherwise, for any errors or omissions.