Branch Business Setup in Dubai

  • Home
  • Branch Business Setup in Dubai
Branch-Business-Setup-in-Dubai

Branch Business Setup in Dubai, UAE

Setting up a branch office in Dubai gives your business access to the growing markets of the Middle East and North Africa (MENA). With a strong economy, modern infrastructure, and business-friendly laws, Dubai is a great choice for international companies. Mehar Business Solution LLC helps with every step from getting approvals and licenses to meeting legal requirements and planning future growth to make your entry into the UAE market smooth and easy.

Why Choose a Branch Office in Dubai?

A branch office is not a separate legal entity but an extension of your existing company. It allows you to:

  • Operate under your company name: Maintain brand consistency across markets and leverage your global reputation.
  • Retain 100% foreign ownership: Unlike mainland companies, no equity sharing with local partners is required.
  • Access regional markets: Leverage Dubai as a strategic hub for the Gulf Cooperation Council (GCC) and wider Middle East operations.
  • Benefit from tax incentives: Enjoy corporate tax advantages, exemptions, and no personal income tax.
  • Expand business activities: Conduct sales, marketing, and service operations seamlessly under your parent company umbrella.

Benefits of Mainland Company Formation in UAE?

  • Strategic Location: The UAE serves as a gateway between East and West, providing easy access to regional markets across the Middle East, Asia, and Africa. Its major cities, Dubai and Abu Dhabi are bustling commercial hubs.
  • Tax Advantages: The UAE offers a highly favorable tax regime. With the introduction of a 9% corporate tax (as of 2023), the UAE remains one of the most tax-friendly locations for businesses. Additionally, the country does not impose personal income taxes, capital gains taxes, or withholding taxes.
  • Ease of Doing Business: The UAE is consistently ranked as one of the easiest places to do business globally, thanks to its simplified registration procedures, supportive legal framework, and modern infrastructure.
  • Access to Talent: Setting up a mainland company enables you to recruit top-tier talent from the UAE and abroad, allowing you to build a skilled workforce.
  • Reputation and Credibility: A mainland company holds a certain level of prestige, as it is registered directly with the UAE government, which can enhance your company’s credibility when dealing with local businesses and governmental entities.

Key Differences: Branch Office vs. Foreign Subsidiary

Understand the best structure for your business expansion:

Branch Office

A branch office operates as an extension of the parent company, with the parent company responsible for all its obligations. It does not have a separate legal identity and is usually faster and easier to set up. This option is ideal for companies that want to test the market or expand their existing operations.

Foreign Subsidiary

A subsidiary company is a separate legal entity with its own liability. It provides limited liability protection for the parent company and requires a minimum share capital with a more formal setup. It involves more complex management and compliance but is suitable for long-term and fully established operations.

Step-by-Step Branch Setup Process in Dubai

1. Engage a Local Service Agent (LSA)

Every branch office must appoint a UAE national or company as a Local Service Agent. The LSA handles government correspondence, licensing approvals, and other administrative requirements. Mehar Business Solution LLC can assist in identifying and managing this relationship to ensure smooth processing. Learn more about our Local Service Agent services

2. Obtain Initial Approval from Ministry of Economy

Prepare your application with supporting documents such as the parent company Memorandum and Articles of Association, certificate of incorporation, board resolution, and power of attorney. The Ministry of Economy will review and forward your application to the Federal Foreign Companies Committee.

3. Receive Federal Permission and Apply for Trade License

Once federal approval is granted, submit your trade license application to the Department of Economic Development (DED). Choose business activities carefully to reflect your parent company’s values and comply with UAE regulations. Check our detailed guide on business licenses in Dubai.

4. Secure Office Space and Register Locally

Dubai requires physical office space or flexi-desk options. After leasing, register your office with the Dubai Chamber of Commerce and Industry and other relevant municipal authorities. Explore our office space rental solutions.

5. Visa and Labour Registration

Apply for employee visas, work permits, and Emirates IDs as needed. Our professional PRO services in Dubai streamline immigration and labour compliance, allowing you to focus on growing your business.

Documents Required for Branch Office Registration
  • Memorandum & Articles of Association (MAA) of the parent company, attested
    Certificate of Incorporation of the parent company
  • Trade name reservation certificate
  • Board resolution and power of attorney for branch setup
  • Passport copies of directors and appointed LSAs

Cost Estimate and Setup Timeline

The total cost to establish a branch office typically ranges from AED 80,000 to AED 120,000, varying based on business activity, office location, and service fees. The setup process usually takes between 4 to 8 weeks. For a detailed breakdown, visit our pricing page.

  • Government fees and refundable deposit: AED 50,000
  • Local Service Agent annual fee: AED 5,000 to 10,000
  • Office rent and Ejari registration: Varies by area
  • PRO and document processing fees: AED 7,000 to 12,000

Who Benefits from Branch Business Setup?

Many companies from different industries have expanded successfully by opening branch offices in Dubai. Common examples include setting up regional sales and distribution centers for FMCG brands, creating marketing and service hubs for technology companies, and establishing customer support centers for automotive businesses.

Common Challenges and How to Overcome Them

Incomplete or Incorrect Documentation

Missing attestations or errors in board resolutions can delay approvals. Our expert team at Mehar Business Solution LLC thoroughly reviews all documents before submission to prevent such issues. Learn more about our document attestation services.

Activity Selection Errors

Applying for unauthorized activities results in license rejections. We carefully match your business scope to licensed activities, ensuring compliance and operational freedom.

Some FAQ About This Service

No. A Local Service Agent is mandatory for administrative purposes but holds no ownership or equity in the branch.

Yes. Branch offices can sponsor visas and employ staff under UAE labor laws. Find out more about our visa and immigration services

Trade licenses must be renewed annually. Mehar Business Solution LLC offers ongoing license renewal and compliance services.

Trade licenses must be renewed annually. Mehar Business Solution LLC offers ongoing license renewal and compliance services.

Typically, it takes between 4 and 8 weeks, depending on document readiness and government processing times.