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What is a Branch Office?

A branch office is a direct extension of your foreign parent company, operating in Dubai under the exact same legal name and identity. Unlike other business structures, a branch does not have its own separate legal personality, meaning the parent company carries full financial and legal liability. All strategic decisions, ownership rights, and major approvals remain with the parent company. The Department of Economic Development (DED) and the Federal Foreign Companies Committee oversee registration, ensuring that the branch complies with UAE laws while staying tied to its global headquarters.

To set up a branch office in Dubai, the parent company must be fully established and active for at least one year in its home country. Once registered, the branch can operate just like the main company: providing services, executing projects, issuing invoices, and signing legally binding contracts under the parent company's name. This structure gives businesses a seamless way to expand into the UAE while keeping their brand, processes, and international standards consistent across markets. It is especially useful for companies wanting controlled expansion without creating a separate entity.

For mainland operations, appointing a Local Service Agent (LSA) is mandatory, but the LSA does not hold any ownership or influence over business activities. Their role is limited to facilitating government procedures and ensuring compliance with local regulations. This setup gives companies full operational control with straightforward administrative steps, making the branch office model ideal for foreign companies looking to test the UAE market, strengthen regional presence, or manage long-term projects with minimal restructuring.

Steps to Branch Office Formation in Dubai

Setting up a branch office involves obtaining parent company approval, selecting an activity scope, securing a local service agent, obtaining governmental approvals, leasing office space, and receiving your license.

Prepare Parent Company Documentation

Prepare Parent Company Documentation

Obtain Ministry of Economy Approval

Obtain Ministry of Economy Approval

Secure Local Service Agent Agreement

Secure Local Service Agent Agreement

Apply to Federal Foreign Companies Committee

Apply to Federal Foreign Companies Committee

Receive DED Consent and Approvals

Receive DED Consent and Approvals

Secure Office Lease Agreement

Secure Office Lease Agreement

Register Commercial License

Register Commercial License

Register with Chamber of Commerce

Register with Chamber of Commerce

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Benefits of Branch Office in Dubai

100% Foreign Ownership

100% Foreign Ownership

Maintain complete ownership and control. No local equity partner required. Parent company retains all decision-making.

Direct Market Access

Direct Market Access

Operate throughout Dubai and UAE mainland. Invoice clients and sign contracts directly. Conduct business under name.

Simplified Setup

Simplified Setup

Not a separate legal entity means fewer regulatory requirements. Lower compliance burden than establishing subsidiary.

Operational Control

Operational Control

Parent company directs all branch operations and strategy. Unified business policies across parent and branch offices.

Cost Efficiency

Cost Efficiency

Lower setup and administrative costs compared to subsidiary formation. Streamlined licensing and compliance procedures reduce.

Expanded Reach

Expanded Reach

Leverage parent company's reputation and market presence. Access GCC markets as gateway from Dubai location available.

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Is Company Formation in the UAE Costly?

Considering the international standards, people assume that UAE company incorporation costs a lot! But this is different, company formation in Dubai or anywhere in the UAE can be easy and affordable with the right advisors. Experience competitive company formation packages with Avyanco, your company formation consultants in Dubai.

We analyse your requirements and offer you the best company formation services and packages to start a business in the UAE. Avyanco provides one-stop solutions to reduce UAE company formation costs through our custom-made pricing structure. Our advisors consider all your company start-up requirements and offer packages depending on your budget.

Dubai Business Setup Cost Calculator

Get a comprehensive cost breakdown for establishing your company in Dubai

Mandatory Registration

How We Help with Branch Office Formation

Parent Company Review

Parent company documentation review and preparation ensuring complete and accurate submission.

Government Coordination

Federal Foreign Companies Committee and DED liaison handling all governmental interactions.

Local Service Agent Setup

Local Service Agent agreement negotiation and finalization for mainland registration compliance.

Documentation Management

Complete documentation preparation meeting all authority requirements precisely and completely.

Office Space Assistance

Office lease negotiation and Ejari registration support securing appropriate business location.

License Application

Commercial license application and Chamber of Commerce registration from submission to approval.

How Can We Help You?

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