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Setting up a representative office in Dubai lets foreign companies establish a presence in the UAE without doing direct business. This office focuses on promotion, marketing, market research, and connecting with clients. Although it can’t make transactions or earn revenue, it helps expand the company’s reach in the UAE.

To open a representative office, businesses must follow rules set by the Department of Economic Development (DED) and the Ministry of Economy, including appointing a local service agent if needed.

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Benefits of Starting a Representative Office in the UAE

Cost-Effective Market Entry

Simplified Compliance

Strategic Market Presence

Flexible Operations

Future Expansion Potential

Favorable Tax Environment

Steps to set up a Representative Office in Dubai

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Partner with a Local Service Agent (LSA)

To establish a representative office, you must appoint a Local Service Agent, who is either a UAE national or a wholly UAE-owned company. The LSA will handle administrative tasks and act as your official liaison with government entities, ensuring compliance with UAE regulations.

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Register Your Trade Name

Choose a trade name that aligns with your parent company’s brand. This name must comply with UAE regulations, which prohibit certain terms, such as those related to religion or countries. It’s often recommended to incorporate “Middle East” if the desired name is already registered for a company in Dubai.

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Obtain Initial Approval from the Ministry of Economy (MOE)

Submit an application to the MOE for initial approval. This application includes details about the parent company, intended business activities, and key documents such as the certificate of incorporation, memorandum of association (MOA), and power of attorney.

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Apply for a Trade License from the Department of Economic Development (DED)

After receiving initial approval from the MOE, apply for a trade license from the DED. This license is crucial as it allows your representative office to legally operate in Dubai. The DED will review the application and issue the license once all requirements are met.

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Complete Documentation and Setup

Submit all required documents, including the notarized Local Agent Agreement, attested board resolution, and passport copies of the company’s investors (if applicable). Ensure all paperwork is accurate to avoid delays or rejections.

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Open a Corporate Bank Account

Once your representative office is licensed, you can open a corporate bank account in Dubai to manage finances and transactions related to your business activities.

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Difference Between a Branch Office and a Representative Office

Aspect Representative Office Branch Office
Scope of Activities Non-commercial (promotion, research); no revenue. Commercial (sales, revenue generation).
Legal Structure Part of parent company, no separate identity. Extension of parent, no separate identity.
Licensing Non-commercial license from DED. Commercial license required.
Financial Operations No transactions; funded by parent. Handles transactions; sends profits to parent.
Local Service Agent Required, with no ownership. Required if foreign-owned.
Taxation Not taxed (no revenue). Tax-exempt; repatriation rules apply.

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Representative Office Setup Consultants in Dubai

How Riz & Mona Consultancy Can Help?

Riz & Mona Consultancy is renowned as one of the top business setup consultants in Dubai, with over 15 years of experience facilitating a wide range of businesses throughout the UAE. Our deep connections with government officials and key authorities, combined with our extensive expertise in consultancy, streamline the process of establishing your business in Dubai. Additionally, we offer comprehensive financial, legal, and corporate services to support our clients throughout their business endeavors.

We are here to provide comprehensive support in Setting up your Representative Office in Dubai, from preparing your documents to completing the process. Connect with us now to begin your journey with a FREE consultation!

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FAQS (Frequently Asked Questions)

What documents do I need to start a representative office in Dubai?

You need the parent company’s Certificate of Incorporation, Memorandum of Association (MOA), a board resolution, power of attorney, and details of the proposed General Manager​.

What is the legal framework for establishing a representative office in the UAE?

The legal framework requires compliance with the Department of Economic Development (DED) and the Ministry of Economy, including appointing a local service agent and obtaining a representative office license.

How long does it take to establish a representative office in Dubai?

The process typically takes 2 to 4 weeks, depending on the efficiency of document preparation, approvals from the Ministry of Economy and the DED, and any additional requirements such as office leasing.

Can a representative office be converted into a branch office in Dubai?

Yes, a representative office can be converted into a branch office if the company decides to engage in commercial activities. This requires applying for a commercial license and meeting additional regulatory requirements.

What are the ongoing compliance requirements for a representative office in Dubai?

A representative office must renew its trade license annually, maintain a physical office space, and ensure ongoing compliance with UAE regulations, including the renewal of visas for its employees