Foreign Co. Rep/Branch Office Setup

A foreign branch office is the local representation of a company or establishment that is registered elsewhere in the world. This branch is obligated to engage only in the same or similar activities undertaken by the parent company. Under UAE law, a branch office is an extension of its parent company, and the parent company therefore remains responsible for any liabilities of the branch office in Dubai.

To establish and open a branch of a foreign company in Dubai, a manager from the foreign company must be appointed to represent the company. The manager must have an approved motion by the Board of Directors to open the branch.

The parent company holds 100% ownership of the branch or representative office, which must function under the same name and conduct the same business as the managing company. There is no discrete legal identity.

A branch or representative office requires to appoint local service agent, who has no rights, interests or financial participation in the business. This can be a UAE National or a company owned by one or more UAE national, who will represent the company with regards to government measures and management.

The license will be based on the activities of the parent and the branch company whether it’s Professional, Trade/Commercial and Industrial License.