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
Dubai is one of the most attractive markets in the region for retailers with growth opportunities in the UAE. Setting up a retail shop in Dubai can be very advantageous and growth-oriented for entrepreneurs and business people. To start a retail shop in Dubai, there...
The foodstuff trading business is growing drastically in Dubai. If you are planning to start this business in Dubai then you have made the right decision, due to its immense potential as most of the food supplies in the UAE are exported imported, packed and...
To set up an industrial company in Dubai it requires various documentation procedures to be followed and is a tedious process. Industrial licenses are issued to the organizations that convert natural resources to finished goods. If you are planning to start an...
Dubai holds the first position in the business professional list. Due to its tax-free norms and ease of doing business, it attracts international investors dealing in any business industry. To start a business in Dubai is one of the perfect options for entrepreneurs...
Local Sponsor in UAE refers to local service agents and nominee shareholders in mainland companies with foreign investments. It is mandatory that a sponsor has to be a UAE national. A local sponsor in the UAE acts as a sleeping partner in your business who has to own...
The main agenda of the branch office is to promote and market the products/services of the parent company, finalize agreements and offer services to its customers. Branch in Dubai is ideal for regulated industries like banking, financial services, and industries....
Subscribe to Our Newsletter
We’ll keep you updated on the latest trends and news
Request a call back
Would you like to speak to one of our business advisers over the phone? Just submit your details and we’ll be in touch shortly. You can also email us if you would prefer.