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 email@example.com
Find out how much it cost you to setup your Dream Business
Other Recent Blogs
Introduction In recent years, Dubai’s food industry has grown to become a global tourist destination in its own right. The region is home to world-class cuisines, multi-cultural restaurants, and fantastic attractions. The love for food and fine dining has exploded in...
As the world around us continues to evolve, more and more entrepreneurs are forging new and clever business solutions that will pave the way for the world of tomorrow. Behind the many inspiring success stories lies important steps that business owners use to get...
Offshore company formations in the UAE have proven to be a very popular business setup category. Offshore company setup offers several advantages, including owing no tax or low tax to the local UAE government. Offshore companies are businesses that are allowed to...
The Abu Dhabi Global Market (ADGM) is an international economic center, strategically positioned on Al Maryah Island in Abu Dhabi. The financial center was established in 2013 by the Abu Dhabi Chamber of Commerce, and became fully operational in October 2015. The ADGM...
What is VAT? Value Added Tax or VAT is a consumption tax imposed on goods and services, which is levied at each stage of the supply chain where value is added, ranging from production to the point of sale. VAT is based on consumption, rather than on income. Unlike...
Starting any type of business is a challenge in itself, but getting a new business off the ground in a foreign country adds another set of unique logistical challenges. Are you interested in launching your own consulting business in the UAE? If so, that’s a challenge...
Subscribe to Our Newsletter
We’ll keep you updated on the latest trends and news