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 of 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
Foreign companies can enter UAE market by setting up a representative office. Representative office in UAE/foreign office setup in Dubai are not allowed conduct business or trade in UAE but can undertake marketing and promotional activities on parent company’s product on behalf of the mother /parent company.
Features of Representative Office in UAE
- 100% ownership with parent company are permitted in UAE representative office
- Representative office are only allowed to promote/market the business activity of parent company.
- Local service agent is compulsory for the formation of representative office in UAE. 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 representative office.
- Representative offices are not permitted to enter business transactions
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.
We offer a business blend of international management know-how, successful entrepreneurial experience, financial and legal insights and a hand –on business approach. Our team of specialists can guide your company through the maze of company setup in Dubai and growing your business in Dubai, UAE. We are always set to go the extra mile to have all the needs of yours. Our know-how, competitive rate and trusted and quality service have made us one of the most preferred consultants for company setup in Dubai UAE and service providers in UAE.
Kindly contact us for foreign company setup in Dubai /setting up of branch of foreign /representative office in UAE.