Branch /Representative Office of a Foreign Company
The most significant is that foreign company owners just get 49% portions of Dubai Mainland Company, while local sponsor holds staying 51% portions of a foreign company. In any case, a foreign company can undoubtedly maintain a strategic distance from this condition and increase total responsibility for business by opening a branch/representative office in Dubai.
Difference between a branch/representative office of a foreign company
It permits the branch office of a foreign company to perform any business exercise like that of its parent company. It can likewise win profit with these business exercises.
A representative office of a foreign company cannot do trading. A representative office may exercise just a promotional business for the items and services given by the parent company.
Benefits to set up a branch/representative office
A foreign company in Dubai holds 100% portions of its business through a branch/representative office. When related to Dubai Mainland Company, it does not need local sponsors.
The only demand for the representative/branch office is to choose the LSA (local sponsor agent). These agents have no part to play in tasks or the management of an organization, but they just perform an administrative function.
It permits a branch office to do a business exercise in favor of its parent company. It can win profit through these exercises.
A representative office can’t earn a profit; However, it may promote the products and services of its parent company. As a result, it will give exceptional profits to its parent company by introducing its services in Dubai and different parts of the UAE.
Requirements to set up a branch/representative office
It requires a branch or representative of the foreign company to present a bank certification of AED 50,000 for the Ministry of Economy as it is a piece of the license preparing process.
To open a branch or representative office in Dubai; However, it must select a manager to represent the company; the manager must have an allowed act by the Board of Directors to open the branch.
What MSZ Offers
Our team has incorporated companies in Dubai. We will take care of the whole process. Starting from initial approval until the complete process of business registration with the Department of Economic Development (DED) Dubai. For further information please contact us on firstname.lastname@example.org
Find out how much it cost you to setup your Dream Business
Other Recent Blogs
The Golden Visa: An Overview In 2019, the United Arab Emirates, in a bid to draw in foreign residents and expand businesses in the region, implemented a new 5 or 10 year residential visa system to allow foreign owners to work, live, and study in the UAE without the...
IFZA One of the Leading Free Zones in the UAE IFZA, or The International Free Zone Authority, remains one of the most cost-effective solutions for business setup in the UAE. Their focus on hosting a wide variety of business activities under a single license while...
The United Arab Emirates (UAE) has been a bastion for businesses for decades, with thousands of companies flocking to the region to conduct business. And despite the effects of the pandemic, the rate of growth is expected to pick back up in 2021. There has never been...
There are very few things on Earth that are as immediately striking as the city skyline of Dubai. From the beautiful blue waters of the gulf to the sparkling tower of Dubai’s Burj Khalifa, the city has developed an aesthetic that is envied by every major city in the...
What is a Special Purpose Vehicle? No, it's not a Land Rover or some four-wheel-drive made for a specialized purpose like traveling in snow or driving through standing water. In fact, it really has nothing to do with transportation at all. Instead, it's a legal entity...
Foreign Aspirants Can Now Launch Their UAE Business Venture with 100% Ownership Yep, you read that headline right. Foreign business aspirants can now launch their dream venture in the UAE while retaining 100% business ownership! And this also means that 100% UAE...
Subscribe to Our Newsletter
We’ll keep you updated on the latest trends and news