Foreign companies can open a Branch or appoint a representative in the UAE. In case of a Branch, they can conduct all those activities for which they are legally licensed to do so overseas. In case of a representative being stationed in the UAE, the company can only promote its products or services, but not conduct its main business activities or trade goods directly.
Some terms and conditions while opening a branch office in the UAE:
- The parent company must be registered with the Ministry of Economy & Planning’s register of foreign services
- The parent company must apply for a license to open a branch in the UAE with the above Ministry before obtaining a license from the concerned authority in the concerned Emirate.
- A service agent appointed by the parent company must be a UAE national.
- The service agent is neither obligated to undertake any financial obligations on behalf of the parent company nor should he/she interfere with the company’s functioning. He or she is only obliged to handle or manage statutory activities such as obtaining permits, licenses and processing transactions with Govt. agencies.
- The branch or representative office must submit AED 50,000 favoring the above ministry, in order to obtain a license.
- Within two years from the date of expiry, the license must be renewed, else, it stands cancelled. The renewal fees are deducted from the above guarantee.
General note: There may be slight variations in the Terms & Conditions for setting up the company in Dubai, as against rest of UAE. Please consult CSU for more details.