Representative Office / Branch Office Of Foreign Company in Dubai
The Companies Law, in article (313) allows a foreign company to conduct its main activity in the UAE by opening a branch or a representative office.
The difference between Branch & representative office is that the foreign company which opens a branch in the UAE may conduct freely the same activities for which it is licensed whereas a representative office may exercise only promotional business for the products and services provided by the parent company.
Branch or or representative of the Foreign company are required to submit a bank guarantee of AED 50,000 favoring the Ministry of Economy as it is a part of the license processing procedure.
To open a branch or or representative in Dubai, a manager must be appointed to represent the company; the manager must have an approved motion by the Board of Directors to open the branch.
Branch Office / Representative Office – Details At Glance
- Branch office is allowed to exercise the activities (Licensed) of its parent entity
- Branch Companies are permitted to enter into contracts and conduct local business
- Representative offices are only for promoting the business of the parent companies
- Representative offices are not permitted to conduct any local business
- Additional approval is required in some cases for the Branch of foreign company from Ministry of Economy
- Getting approvals and permissions from concern departments
- Preparing the obligatory documents and MOA
- Identify a trusted and qualified local service agent
- Assistance in opening the bank accounts
- Assisting to find suitable office premises
- Handle other documentation formalities