The foreign branch in UAE is basically an extension of the mother company incorporated in another country. This is an advisable option for international companies that want to expand their activities and penetrate their brand name in UAE .
The branch must have the same business activities as the parent company, it cannot perform different business activities. Setting up of branch of foreign company in UAE not allowed trading activity. Depending on the business activities performed by the branch, it may require special permits and licenses to function. Moreover, one particularity of the branch is that it is completely dependent on the parent company. This business form is part of the foreign entity, it does not have legal personality and any action or liability of the branch in UAE will directly affect the parent company. The brand name of the branch of foreign opened in UAE must be the same as the name of the foreign company. The UAE foreign branch setup does not require a minimum share capital but all the financial liabilities vested to parent company.
For setting up of branch in UAE must have appoint authorized person who will represent the foreign company. The representative will be acting as the legal representative of parent company and he have full operational, managerial and banking powers on behalf of parent company.
A branch of a foreign company needs to be registered in Ministry of Economy and Department of Economic Development in UAE.
Following documents are required to make the registration and completion of branch of foreign company formation in UAE.
- Passport copy of the representative of the company with UAE entry stamp/visa
- Family book, passport copy, Emirates ID of the UAE National.
- Last 2 years balance sheet of parent company along with auditor’s report.
- Profile of the company and presentation on project did by parent company.
- Notarised & attested Board of Resolution from parent company to open a branch in Dubai.
- Notarised & attested Power of Attorney to the representative of proposed branch.
- Notarised & Attested Incorporation Certificate of parent company.
- Notarised & attested Chamber of Commerce Certificate of parent company
- Notarised & attested MOA of parent company.
- NOC from the parent company to open the branch in UAE – Dubai
- Under taking letter from the parent company in the case of financial liabilities
- Tenancy contract.
- Letter from the bank for capital deposit in Ministry of Economy.
- Attested manager’s experience and academic qualification certificate.
Note: All the foreign documents should be notarized and attested by UAE consulate / embassy from the Company’s Country of origin (to be done by the client).If the parent company document is not in English, then please translate into English and then only notarize by UAE embassy /consulate. The same documents should be translated into Arabic and attested from Ministry of Justice and Ministry of foreign affairs UAE
Foreign companies need assistance for registering a branch or to open a Dubai Company can contact our company formation consultants.
