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
When it comes to business-friendly cities, Dubai is at the top of the list. Entrepreneurs from around the world are interested in investing in the city’s growing sectors. If you’re ready to get your business started in Dubai, there are several steps and procedures...
Dubai has a reputation around the world as being a business-friendly city with excellent incentives for entrepreneurs. This is especially true for e-commerce businesses. Now, more than ever before, people are increasing their spending habits online. Dubai is prepared...
Are you thinking about starting a business in Dubai? There is no better time than now! The economy in the UAE is booming, and there are several big events planned in the city for 2021 that are expected to bring in even more business to the area. So, if you’re ready to...
Covid-19 may have stopped events dead in their tracks in 2020, but Dubai is planning to make up for the lost time in 2021. The city has scored a number of major bids for big events that will bring in professionals from all over the world. The Dubai Business Expo 2021...
Are you wondering if your company needs to register for Value Added Tax? Value Added Tax, or VAT, is one of the most common types of tax around the world. More than 180 countries have implemented this tax, including the UAE. While some countries have raised their tax...
The United Arab Emirates is known around the world for its business-friendly environment. Over the years, the country has put new rules and regulations into place to attract foreign investors, and it has paid off big time! Switzerland, the United Kingdom, India, the...
Subscribe to Our Newsletter
We’ll keep you updated on the latest trends and news