Business Setup in UAE

How to Start a Branch Office in Dubai, UAE

Starting a branch office in Dubai is a method through which overseas business people can extend their business in the United Arab Emirates. While the nation gives different advantages to start business in UAE, there are also many perks of holding a branch of an overseas corporation in Dubai emirate.

The business people are steering ample due diligence to make sure that the business framework they choose for the business is suitable for their commercial objectives. Moreover, forming a branch office in Dubai provides you a geographic benefit as well, thanks to the strategic business spot of Dubai.

Business people with well-settled corporations or high-brand value in other national looks for the chances to start a branch office in this emirate. Understanding this, the officials have allowed a simple and fast method to form a representative office in Dubai. The business professionals would assist you to form a branch office in Dubai.

The Steps to Open a Branch Office in Dubai UAE

You can form your branch office with the assistance of a professional or by yourself. Although this is your first-time to start company in Dubai, this is greatly advised that you look for assistance from the experts. Any mistakes in the formation of a corporation would lead to a few expensive backs that would cost you both money and time. The steps you have to comply with are –

• Appoint Local Service Agent

The local service agent requires to be an Emirati, and they would work as the mediator between the concerned governing body and you. They would get licenses, permits, visas, approvals, and more, for you. As so much paperwork and official procedures are operated in the Arabic Language, this is essential for overseas corporations to hire an LSA. If needed, the LSA would share ownership of the corporation but won’t take part in any management or operational activities of the corporation. They won’t take a part of the profit and would only need a minimal yearly charge.

• File Your Branch Office Application

To get begun, you have to file an application to the Economy Ministry in this emirate. You will require to get the initial approval from them to go ahead with the next move. This is why you have to fill the application form with care with authentic detail that is free from any mistakes. Your LSA would assist you in filling up the form to make sure that are no mistakes. A service agent contract is also needed to officially declare that the LSA would be working on your behalf to start company in Dubai.

• Get Necessary Approvals

You would require to submit the necessary documents to the Economy Ministry to obtain their approval. You would also require approval from the Federal Foreign Companies Committee to begin working your business activities in the country. The Economy Ministry would forward the application to the FFCC, so you don’t have to worry about this. If everything is in place, then a permit letter would be sent, and you would obtain the approval for your Dubai office branch.

• Get the Business License

The DED in Dubai is liable for giving business licenses for business setup in UAE. After you get your approval, you can make an application for the business license from the Dubai Economic Department. Note that you can only conduct the business activities that you registered for when making an application for the business license. Hence, this is advised to choose all the concerned commercial activities carefully when making an application for the business license. The business license has to be renewed yearly.

• Register with Commercial Authorities

Once you have registered your branch office successfully and received your business license, the final move is to register it with commercial administration. For instance, if your branch office is based in Dubai emirate then you have to register it with the Chamber of Commerce and Industry of Dubai.