HOW TO ESTABLISH A BRANCH OFFICE IN UAE
What is Branch Office? A branch office in the United Arab Emirates is a site where a business is done that is separate from the main office. Brach offices are generally made up of smaller divisions that deal with various parts of the business, such as human resources, marketing, and accounting. Both the Mainland and the Free Zone have a branching legal system.
Benefits of Establishing a Branch Office • • • •
Tax Advantage Audits Streams Minimal administrative overhead Cost-Effectiveness A Path to a New Market
Process of Opening a Branch Office in the United Arab Emirates • • • •
Make a list of local agents. Make a Trade Name Reservation Submit an application to the Ministry of Economy Obtain a Department of Economic Development License • Carry out administrative responsibilities • Join the Chamber of Commerce and Industry as a member
Documents Required to Open a Branch Office in UAE
• Trade name reservation and initial approval forms • Certificate of Incorporation, Memorandum of Association (MOA), Articles of Association (AOA) • Board resolution that authorizes the opening of the branch office, certificate of good standing • Power of attorney in favour of General Manager • Director’s passport copy • Audited accounts of the parent company for the last two years • A statement that highlights the company’s establishment aim, main operational activities • Notarized agreement with the local agent • Government approval
Challenges for Opening Branch Office in UAE • • • • •
Ownership of the company. Implications of VAT Communication Styles Managing Revenue People Management
Conclusion Setting up a branch or a representative office serves as a supporting pillar and an extension of the parent company, ultimately assisting them in capturing the mass market in various parts of the world. As business advisors, Dhanguard is familiar with the establishment procedure and has assisted a number of clients in establishing their businesses in the UAE. If you'd like to move on to the next level, please contact us; we'd be pleased to help.
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