Under UAE federal law, foreign companies can penetrate their brand by setting a branch of foreign company. Foreign companies can establish a branch office in the UAE. The Commercial Companies Law covers the formation and regulation of branches and representative offices of foreign companies in the UAE and stipulates that they may be 100% foreign owned, provided a local service agent is appointed. Local agent must be either a Emirati citizen or 100% Emirati owned companies. A branch office, legally regarded as part of its parent company, is a full-fledged business, permitted to perform contracts or conduct activities same or similar to those of its parent company.
Advantage of setting up the foreign branch in UAE
Branch of a foreign company in Dubai / UAE permitted 100% ownership with parent company
In setting up of branch company in Dubai /UAE local service agent is mandatory .Local service agent must be an UAE national or a company fully owned by UAE national. Local agent doesn’t have any rights in the branch office.
In UAE branch office managerial, operational and banking powers vested to the representative of the parent company
Setting up of branch office in Dubai can enter into transactions and offer its service to customers
By setting up of Branch office in Dubai /UAE companies can penetrate the UAE market by utilizing the brand name of mother company
Branch office are only allowed to offer parent company products and services
Branch office in Dubai /UAE are exemption from tax in UAE and can enjoy 100% tax benefit
Nex Consultants offering a comfortable investment experience to international organizations entering in UAE market. With our hands-on business approach, the team of NEX Consultants offers the necessary services to guide the clients effectively and conveniently for company setup in Dubai/foreign branch startup in UAE.