How to open a branch office of a foreign company in Dubai, UAE

How to open a branch office of a foreign company in Dubai, UAE - Makebiz

The United Arab Emirates is a promising region for doing international business and opening branches of medium and large enterprises.

The functions that branches perform are:

  • placing an office with employees to serve customers;
  • official registration in the Emirates is particularly useful for the purposes of company representation and establishing partnerships;
  • business environment, holding various thematic events and exhibitions allow to promote their services and goods;
  • easing the tax burden;
  • expansion of production capacities.
  • investment and capital saving, thanks to a reliable and developed banking system;
  • providing fast logistics to new destinations.

Dubai is chosen for expansion of existing businesses for a number of reasons: low tax burden, simplified registration process, favorable geographical location, low cost of energy resources, a wide range of highly qualified specialists and developed infrastructure. The most significant advantages for foreign companies are the possibility of full ownership, no restrictions on repatriation of profits.

Let’s highlight the main forms of activity:

1. Representative office is more focused on advertising and marketing functions, allowing the company to reach a new level of development.

2. Subsidiary firm is considered a separate legal entity and has greater independence with the ability to produce goods and services demanded in a particular region.

3. The branch remains dependent on the main office in all matters. 

The first step in opening a company is to determine the economic zone for conducting business, depending on the long-term goals of the business: mainland or FEZ. When focusing on foreign markets it is worth considering specialized freezones, and when focusing on work in the UAE — the mainland. Next, it is necessary to prepare a package of documents, legalize them and apply for a license. If necessary, office space can be selected.

Makebiz specialists will provide you with professional assistance and support you in every step of opening a company and branch. Sign up for a free consultation and find out how to open a branch of a foreign company in the UAE.

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