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 info@mszconsultancy.com

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