How2uae - Business Setup in Dubai - Free Zone, Onshore, Offshore & Bank Account Setup

If you are looking at setting up a branch office in the UAE and license it through the Economic Department. There are some conditions that are applicable to all branch office and branch setups:

  1. The branch office should be willing to carry out its activities or have an office in UAE is required to obtain a license from the competent authority of the emirate and a registration certificate with the Ministry.
  2. The branch office should have a local agent.
  3. All branches and offices operating in the UAE should be registered and licensed.
  4. The name of branch office opened in the UAE must be identical to the name of the mother facility abroad.
  5. The facility branches may open branches in the UAE to practice its activities except for the following activities:
  • Commerce and any ancillary activities representing, in general, the sale and purchase of products or commodities.
  • Restaurants, coffee shops, and food catering services.
  • Hajj and Umrah services.
  • Labour supply.
  • Commercial agencies.
  • The following social activities:
    – Care centres for disabled persons.
    – Rehabilitation centres for disabled persons.
    – Centres and clubs for elderly care.
    – Social service centres; and Any office or centre concerned with social services after indicating its objectives and the field of its social work.
    – Cultural activities including the facility of print and publishing houses, newspapers and magazines.

6. The branch office’s activity in the UAE shall be limited to:

  • The Branch Office shall enhance relations and dealings with the facilities customers.
  • The Branch Office shall Provide the facilities head office with information about local markets and the relevant legislation.
  • The Branch Office shall Furnish details and information on the UAE market where the facilities head office locates.
  • The Branch Office shall Promote the products and services offered by the facility.
  • The Branch Office shall Provide investment services to clients.
  1.  The facility shall secure the prior approval of the concerned authorities to conduct the activities for which special approvals are required.
  2. The agent’s obligations towards the facility and third parties shall be limited to the provision of services necessary for the facility without assuming any responsibilities or liabilities as to the business or activities of the facility branch or office inside or outside the UAE.
  3. In case the competent authority has granted the facility more than one license at a single head office, the following conditions must be observed:
    • If the license activities are similar, all such activities shall be included in the Ministry’s branch certificate and the amendment fee shall be paid for each license.
    • If the activities are different, a registration certificate shall be issued separately for each license and the prescribed fee shall be paid accordingly.
  4. In case permits are issued, without obtaining an independent license by the competent authority, to open additional branches/offices to the facilities entered into the register, the following shall be observed:
    • If the head office of the additional branch office is located in the facilities location (in the same building), the facility shall submit a description amendment application to the Ministry and shall pay the fee prescribed
    accordingly.
    • If the additional branch office is located in a different location (in another building), the facility must apply to the Ministry for licensing and registration as per the applicable regulation and shall pay the prescribed fee accordingly.

http://www.economy.gov.ae/english/Pages/default.aspx

For further information about setting up a branch office, please contact us on [email protected]