Top 3 Reasons To Open A Branch Office In Dubai

Opening a branch office is quite a popular way for foreign companies to extend their business in other markets. Doing so offers many benefits. Among the various types of company formation in UAE, one of the most important ones is the branch office setup in Dubai.

1. Holding 100 percent Foreign Ownership

A branch office setup in Dubai permits 100 % foreign ownership with you performing all activities similar to the parent company. The branch office is not considered a separate legal entity. Rather, it is an extension of the parent company. Branch office formation in the city needs only a local service agent by your side. The local service agent is a UAE National or a company wholly owned by a UAE National. They do not acquire any rights in the branch; only offering services related to authorities, such as visa applications. The local service agent charges a fixed annual fee for the administrative support. The branch office in Dubai is 100 % foreign owned.

2. Renting an Office Irrespective of the Location

A branch company formation in Dubai can be done within Dubai mainland or any of the several free zones. While a branch in one of the several free zones in UAE needs to rent an office within the free zone area, a branch formed in Dubai mainland can rent an office anywhere within the city. Dubai mainland allows you to open your branch office at the location suitable for your business needs. You can profit from infrastructure, more walk-in clients at prime locations and less expenses due to falling rents outside the city center. Opening a branch office in Dubai mainland, therefore, offers you the advantage to rent an office anywhere in Dubai.

3. Trading with Dubai Mainland Companies

Branch offices’ set up in free zones are allowed to trade with other free zone companies in or outside the UAE. Free zone companies can, therefore, not directly trade with the local market. Doing so, however, becomes possible with the support of a local distributor, who charges a certain fee for his assistance. In case you are planning a business setup in Dubai to trade with the local market, opening a branch office in Dubai mainland may prove to be beneficial.

Business setup consultants in Dubai are well-aware of the ins and outs, when it comes to setting up your business in Dubai. Many documents from the parent company are needed, including a Memorandum of Association, a Certificate of Incorporation and a Shareholder’s Resolution authorizing the branch office setup in Dubai. All the corporate documents of the parent company are required to be fully legalized up to the UAE embassy. The PRO Service of Abdulla Bin Dasmal Group assists you with the legalization process. Our industrious and experienced business setup consultants in Dubai are ever-ready to assist you with your branch office formation in Dubai.

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