Branch Office of a Foreign Companies Setup in Dubai

Branch Office of Foreign Company Setup in Dubai – UAE. Apart from foreign companies licensed to operate in the UAE free zones, a foreign company can operate its business or establish an office or branch in the UAE after obtaining a license from the Ministry of Economy and Commerce. The license specifies the activities that the company is permitted to conduct in the UAE. The Commercial Companies Act stipulates that the foreign company must appoint a UAE national or a corporate body (not a commercial agency), the partners or shareholders of which are all UAE nationals, as agent of the company for getting the license.

The duties of the local agent or third parties cover rendering services required without undertaking financial liability related to the business or activity of the company in the UAE or abroad. The agent cannot claim any rights or authority over the business of the company. The agreement determines the local agents’ rights as per services rendered.

The application of the foreign company to set up a branch in the UAE must include:

• Trade name
• Legal form
• Address of Headquarters
• Country where it operates
• Nature of activity intended to be exercised in the UAE
• Name of national agent (if the agent is a legal entity, then its legal form)
• Capital
• Names of partners, their nationality, and addresses.

Under Commercial Companies Act Number 8 of 1984 and Ministerial Decision Number 69 of 1989, a branch office of a foreign company in Dubai does not have a separate entity. It merely represents the parent company and carries on business under its name. Usually, a branch office may promote and market the products of the parent company, enter into transactions and conclude agreements in the name of the parent company, and offer services to its customers.

Documents required for Initial Approval

• Registration and licensing application, as well as proof of a reserved trade name.
• Photocopy of the director’s passport and a no-objection letter from the director’s current sponsor.
• Photocopy of the national agent’s passport and UAE naturalisation identification.
• Approval from the Ministry of Economy and Commerce (commercial activities only).
• The company’s Board of Directors’ Resolution authorising the opening of the branch in Dubai, duly translated into Arabic.
• A power of attorney was issued in favour of the director.
• Main company’s Memorandum of Association.
• Photocopy of the main company’s certificate of incorporation duly translated into Arabic.
• Approval issued by other government authorities according to the type of activity.

Documents required after getting the Initial Approval

• Initial Approval receipt
• All documents submitted before the Initial Approval.
• Photocopy of the office lease, including the plot number.
• The original appointment contract of the national agent is duly authenticated by the Notary Public (Engineering Consultancy Companies are excluded).