Over the years, Dubai has been steadily strengthening its position as a leading hub for global trade and business. Due to this rapid growth, many companies from different parts of the world now feel the need to set up a branch office in Dubai. The strong economy, world-class infrastructure, prime geographical location, diverse workforce, and attractive tax regime continue to attract businesses to the city. These advantages make Dubai an attractive choice for companies looking to expand their presence in international markets.

Another major factor supporting business setup in Dubai is the opportunity to easily expand and operate in free zones. When businesses consider all these benefits together, opening a branch office in Dubai seems like a smart and practical move. However, many business owners still face confusion when choosing between a branch office and a representative office in Dubai, as both options serve different purposes and are subject to different regulations.

What Is a Branch Office?

A branch office refers to a business location that operates separately from the main office or parent company. Companies use branch offices to conduct business activities in different locations. These offices usually handle specific functions of the business, such as finance, marketing, administration, or human resources. For foreign companies planning to enter the UAE market, setting up a branch office remains one of the most preferred options, as it allows them to have 100% foreign ownership. According to the law, a branch office acts as a direct extension of the parent company and has no separate legal identity. As a result, the parent company takes full responsibility for all the liabilities and obligations of the branch office.

How to Open a Branch Office in Dubai?

There are various ways to open a branch office in Dubai. You can handle this process yourself or get the support of a professional. If this is your first setup in Dubai, you should always work with an experienced business advisor. An expert helps you avoid mistakes and saves both time and money.

To set up a branch office in Dubai, you can follow these steps:

Appoint a Local Service Agent (LSA)

The role of an LSA is very important in Dubai, especially for paperwork and approvals. Most government procedures and documents are in Arabic, so you should appoint a Local Service Agent who is a UAE citizen.

Submit an application

Before starting the branch office setup in Dubai, you need to submit an application to the Ministry of Economy for initial approval. This step allows your business to proceed with the setup process.

Finalize the office space

Choose an office space that matches your business activity. Depending on your needs, you can opt for a physical office or a virtual office. After selecting the space, sign the lease agreement.

Apply for a business license from DED

After obtaining approval from the Department of Economic Development (DED), apply for a business license. DED issues the license for one year, and you can renew it every year.

Obtain the necessary approvals from the authorities

Before opening a branch office in Dubai and starting operations, you must obtain approval from the Ministry of Economy. After that, you need approval from the Federal Foreign Companies Committee.

Register with the commercial authorities

Once you have completed all the documents and licensing, register the branch office with the commercial authorities. The Ministry of Economy and Commerce then enters the branch office into its official register.

Finally, you must register a branch office with the Dubai Chamber of Commerce and Industry.

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What Are The Benefits of Opening a Branch Office in the UAE?

• You can retain 100% ownership and full decision-making authority over the branch office.
• The branch office can legally conduct business activities in the UAE and earn profits.
• This structure helps to reduce internal administrative workloads, including accounting, bookkeeping, and audit-related tasks.
• You continue to have full financial and operational control over the branch without external interference.
• The branch has the legal authority to hire employees and sponsor UAE residency visa.
• Tax Benefits - One of the main benefits of a branch office is the 9% corporate tax rate, one of the lowest in the world. Many corporate groups choose this setup to simplify operations and benefit from the UAE's tax-friendly system.
• A National Service Agent represents the branch and handles all transactions with government departments.
• You can directly manage labour and immigration procedures under the branch structure.
• Creating a branch office helps to separate business operations, which makes international audits easier and more manageable.
• Cost Benefits - Opening a branch remains budget-friendly as it does not require paid-up share capital. Only standard government fees apply to establish a branch.

Documents Required to Open a Branch office in Dubai

• Trade Name Approval Certificate
• Parent Company Records - Memorandum of Association, Articles of Association, Certificate of Incorporation and Certificate of Good Standing
• Board Resolution approving the establishment of a branch office in Dubai
• Power of Attorney issued for the General Manager
• Copy of passport of the appointed General Manager
• Audited financial statements of the parent company for the last two years
• Detailed list of major business activities and trade operations carried out in Dubai
• Local Service Agent Agreement with copies of identity documents

Establishing a branch office proves to be a viable option for free zone companies as well as mainland companies that want to expand strongly in the local market of the UAE and explore new business opportunities.

Cost of Setting Up a Branch Office in Dubai

There are various types of costs involved in setting up a branch office in Dubai. Below is a simple cost overview:

License Fees

The cost of a business license depends on your business activity. In most cases, the annual license fee falls between AED 10,000 and AED 50,000.

Other Running Costs

In addition to the main costs, you must plan for staff salaries, professional service fees, promotion costs, and daily business operating costs.

Office Rental Costs

Office space in Dubai often comes at a high price, especially in prime locations. Annual rents typically start at AED 40,000 and can go up to AED 150,000, depending on the size and area of the office.

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Why Will DBS Business Setup Group Open a Branch Office in Dubai?

Opening a branch office in Dubai often seems tedious and confusing. The process is as labour-intensive as starting a new business in the city. You need to manage heavy paperwork and submit multiple documents to various authorities. This is where professional consultants like DBS Group make the journey easier.

DBS Business Setup Group is a trusted corporate business setup consultancy that helps you open a branch office in Dubai. We provide complete support including PRO services, company registration, document filing and all related approvals. Our team clearly explains every step and requirement to open a branch office in the UAE at a cost-effective price. With our guidance, you can easily start your Dubai branch office and focus on growing your business without unnecessary stress.