Dubai has emerged as a global business hub, attracting entrepreneurs and corporations from around the world. The city's strategic location, business-friendly environment, and robust infrastructure make it an ideal destination for international companies seeking to establish a presence in the Middle East. One of the ways to do so is by obtaining a branch of foreign company license. This article aims to provide a comprehensive guide on how to obtain a branch of foreign company license in Dubai.
A branch of foreign company license allows international businesses to establish a presence in Dubai and operate as an extension of their parent company. It enables them to conduct business activities and take advantage of the opportunities in the local market while retaining their foreign identity.
Establishing a branch in Dubai offers numerous advantages for international businesses. Some key benefits include:
To obtain a branch of foreign company license in Dubai, businesses need to fulfill certain legal requirements. The following steps are involved in the process:
The first step is to register the parent company with the relevant authorities in Dubai or any other jurisdiction.
Businesses need to select a unique trade name for their branch and obtain approval from the Department of Economic Development (DED).
A Memorandum of Association needs to be prepared, outlining the objectives, structure, and activities of the branch.
A local service agent, who must be a UAE national or a company owned by UAE nationals, is required to represent the branch.
Businesses must lease or own physical office space in Dubai to serve as the branch's registered address.
The license application, along with the required documents, must be submitted to the DED or relevant free zone authority.
Dubai offers different types of licenses for foreign company branches, depending on the nature of their business activities. The main license types include:
The process of obtaining a branch of foreign company license involves the following steps:
After obtaining the branch of foreign company license, businesses must fulfill certain obligations to maintain compliance and ensure smooth operations. These obligations include:
Working with a business setup consultant can significantly simplify the process of obtaining a branch of foreign company license in Dubai. Some advantages of engaging a consultant include:
Expanding your business to Dubai through a branch of foreign company license can unlock immense growth potential. By following the legal requirements, choosing the right license, and working with experts, international businesses can establish a successful presence in Dubai's thriving business landscape.
Yes, foreign companies can open a branch in Dubai to establish a presence and conduct business activities
Benefits include access to a growing market, strategic location, tax advantages, world-class infrastructure, and favorable business regulations.
Legal requirements include company registration, trade name approval, memorandum of association, local service agent, office space, and license application.
Types of licenses include professional, commercial, and industrial licenses, depending on the nature of business activities.
You need to clearly define the activities your branch will engage in and select the appropriate license type accordingly.
No, you do not need a local partner. However, you are required to have a local service agent who represents the branch.
Yes, it is possible to operate multiple activities under one branch license, depending on the chosen license type and business activities.
The timeline can vary depending on the nature of the business and the efficiency of the application process, but it typically takes a few weeks to a couple of months.
Post-license obligations include regulatory compliance, sponsorship obligations, annual renewal, and necessary amendments or modifications.
Yes, it is possible to change the local service agent, but the necessary procedures and approvals must be followed.