If you already hold a business somewhere in the UAE. Do you wish to initiate a Branch Setup In UAE? A branch office in UAE is simple when done with the assistance of professionals. This is even the best for an overseas company can access the market in this country. In case you already hold a completely operational company in another nation and you wish to access the Middle Easter market, then a branch office in UAE is a good choice.
With a branch office in this country, your corporation can act on business activities like marketing products, selling goods and services, entering contracts, holding transactions, and more. Although in case the parent company isn’t permitted to act in some business activity, then the branch office in UAE, can’t work on that business activity also.
What is a Branch Office in UAE?
There are some features that define a branch office in UAE. Overseas enterprises that wish to form their existence in the country can select between branch office, subsidiary, and representative office. There are three distinct company frameworks with their own features and advantages.
Here know some features of a branch office in UAE –
- This work the similar activities as the parent corporation.
- The branch office should make an application for a relevant business license that permits those business activities.
- This isn’t deemed an individual legal unit from a parent corporation.
- The parent enterprise would be liable for the debts and duties of the branch office.
- The Business Center In UAE would be taxed depending on their income in the country.
- The branch office would hold the same name as the parent corporation.
The Procedure to Begin a Branch Office in UAE
You can establish a branch office in UAE by yourself or with the support of the business setup consultants like Start Any Business UAE. Although in case this is your first time beginning any type of company in the country, this is highly recommended that you get assistance from the consultants.
1. Appoint an LSA
The Local Service Agent requires to be a country citizen, and they will work as the intermediate between the concerned governing unit and you. They would get business licenses, approvals, visas, and more, for you.
The local service agent would share company ownership but won’t participate in any functional activities of the company. They would not participate in earning and would just need a cost annually.
2. File your branch office formation application
To start, you have to file an application to the Economy Ministry in UAE. You have to get pre-approval. That’s why you have to fill the application carefully with authentic details that are free from any mistakes.
3. Get Required Approvals
You would require to present the necessary documents to the Ministry of Economy to get their approval. You would even require approval from the Federal Foreign Companies Committee to begin performing your business activities in the country.
4. Get Business License
The DED is liable for giving a business license to new companies in UAE. Once you have to get your approval from the Ministry of Economy, you can create an application for a business license from the Economic Department.