Are you an ambitious entrepreneur looking to expand your business horizons and tap into the booming market of Dubai, UAE? Look no further! Establishing a branch office in this vibrant city is a game-changer and a testament to your entrepreneurial prowess. However, keep the thought of navigating through the unfamiliar territory from intimidating you.
In this step-by-step guide, we will unravel the secrets to successfully setting up a branch office in Dubai, making it as seamless and exciting as exploring the stunning desert landscapes or indulging in exquisite Middle Eastern cuisine.
So, fasten your seatbelts and get ready for an exhilarating journey towards building your business empire amidst the glittering skyscrapers of Dubai! Shuraa Business setup will help you with this guide to Starting a branch office in Dubai.
Benefits of Setting Up a Branch Office in Dubai, UAE
Setting up a branch office in Dubai offers several advantages:
1. Tax-Free Environment
Dubai provides a tax-free environment for corporate and personal income, capital gains, and withholding taxes, allowing businesses to maximise profits for reinvestment.
2. Ease of Establishment
Dubai offers a straightforward setup process and government initiatives facilitating easy establishment for foreign companies. Many free zones also permit 100% foreign ownership.
3. Strategic Location
Dubai offers unparalleled access to global markets at the crossroads of Asia, Europe, and Africa, making it an ideal base for expanding businesses.
4. Access to Skilled Workforce
Dubai boasts a diverse and highly educated workforce, providing companies with access to talent from various backgrounds to drive innovation and growth.
5. World-Class Infrastructure
The city features modern transport, telecommunications, banking services, and commercial facilities that create a conducive environment for business operations.
6. Competitive Business Environment
With its strategic advantages and supportive ecosystem, establishing a branch office in Dubai enables businesses to thrive in today’s competitive market while enhancing their global presence.
Process for starting a Branch Office in Dubai, UAE
The process for starting a branch office in Dubai is as follows:1. Initial Approval from the DED
Submit required documents such as the parent company’s business license, board resolution, and passport copies of shareholders. Non-UAE nationals need an Emirati sponsor.
2. Trade Name Registration
Register a unique trade name with the Department of Economic Development (DED) and secure its reservation for six months, with the option to renew twice.
3. Notarisation of Legal Documents
Sign and notarize all necessary documents related to establishing the branch office.
4. Submission for Final Approval
Submit all legalised documents and application forms at the DED’s one-stop-shop counter for final approval.
5. Receipt of Commercial License
Upon verification, receive the commercial license within three working days.
6. Corporate Bank Account Opening
Open corporate bank accounts in Dubai using the new commercial license.
For a smooth setup process and to ensure compliance with all legal procedures, seek professional guidance from Shuraa Business Setup.Types of Offices for Rent in Dubai
Navigating the Dubai office rental market can be challenging for foreign entrepreneurs. We offer fully-equipped office spaces across Dubai to meet all your business needs, including Mainland and Free Zone offices. We provide three types of office spaces:
- Serviced Office: These ready-to-use spaces are ideal for quick setup. They come with internet access, telephone lines, pantry facilities, and more, ensuring a hassle-free move-in experience.
- Onshore Office: These unfurnished spaces offer customisation options, perfect for long-term rentals and tailored setups to suit your business needs.
- Free Zone Office: Essential for Free Zone companies, these offices meet the specific space requirements of each Free Zone. We assist in finding the perfect Free Zone business centre tailored to your business activity.
Our range of office spaces ensures convenience, flexibility, and suitability for all your business ventures in Dubai.
Corporate Structure and Shareholding Requirements for Establishing a Branch Office in Dubai, UAE
1. Corporate Structure- Limited Liability Company (LLC): Requires 100% UAE national ownership or a local sponsor.
- Branch Office: Acts as an extension of the parent company and does not form a separate legal entity.
- LLC: Can be established without needing a UAE national as a shareholder.
- Branch Office: Wholly owned by its parent company without specific shareholding requirements.
- Memorandum of Association: Outlines business details.
- Proof of Identity: Required for shareholders, directors, and sponsors.
- Certificate of Incorporation: Attested by the UAE Embassy for foreign entities.
- Board Resolution: Names the authorised representative(s).
- Power of Attorney: Grants authority to act on behalf of the parent company.
Compliance with these requirements is essential for a successful branch office setup in Dubai. Consulting legal experts can ensure a smooth registration process and prevent potential issues.
Documents and Registrations Needed for Office Setup in Dubai, UAE
The Documents and Registrations Needed for Office Setup in Dubai, UAE1. Trade License
- Get a trade license from DED.
- You must complete an online form, provide personal and company information, submit required documents, pay fees, and obtain necessary approvals.
2. Memorandum of Association (MOA)
- Includes company objectives, ownership structure, and shareholding details.
- Must be notarised by an approved legal translator and attested by the Chamber of Commerce and Industry.
3. Shareholder/Investor Visa
- Apply through DED or the General Directorate of Residency and Foreigners Affairs (GDRFA) with valid passport copies and visa application forms.
- Include sponsor-signed forms and ID copies (locally issued).
4. Office Space Rental Agreement
Submit a valid tenancy contract registration certificate from RERA Dubai/Ejari.
5. MoE Registration Certificate
- Required to register for educational projects/PAGEs in Dubai.
6. Corporate Bank Account
Open with a local bank using a valid passport, company registration documents, and other relevant papers.7. Insurance Coverage
- Compulsory insurance for branch offices as per UAE labour law.
- Provide a copy of all employees' trade licences, labour cards, Emirates IDs, and other company details.
Follow all necessary steps and procedures to avoid delays or complications in obtaining these crucial documents and registrations for your branch office in Dubai, UAE.
Visa and Residency Permits for Staff
Acquiring visas and residency permits for staff is crucial for setting up an office in Dubai, UAE. The process involves:
- Employment Visa: Sponsored by the company.
- Work Permits: Applied through the Ministry of Human Resources & Emiratization (MOHRE).
- Entry Permits/Temporary Residence Visas: Secured for employees.
- Emirates ID Cards: Obtained for identification.
- Residency Permits: Applied at the General Directorate of Residency and Foreigners Affairs (GDRFA) in Dubai.
Ensure all processing is completed before entry permit expiry to avoid legal issues. Engaging a reputable sponsor or consulting firm can streamline the process, ensuring compliance and a smooth transition for employees to work and reside legally in the UAE.
Choosing the Perfect Location for Your Branch Office
Selecting the right location for your branch office in Dubai is crucial for its success and growth. Consider these key points:
- Determine the size, layout, accessibility, amenities, and cost requirements.
- Opt for areas with good road connectivity and nearby public transportation options.
- Choose locations close to your target customers, such as commercial hubs or financial districts.
- Find a balance between affordability and quality amenities when considering office space costs.
- Begin your search early to secure a location that meets all requirements before competition increases.
Setting Up Your Business in Dubai, UAE
Here’s a step-by-step guide to starting a branch office in Dubai:
- Understand Legal Requirements: Choose the proper company structure (LLC, Free Zone, or Branch Office) and comply with relevant regulations.
- Secure Required Licenses: With professional guidance, obtain the necessary permits and approvals for your business activities.
- Choose Your Business Location: Research and select the best location considering your budget and preferences—mainland, free zone, or offshore.
- Obtain Necessary Visas: Apply for foreign owner's and employee visas, ensuring you submit all required documents.
- Determine Visa Requirements: To avoid delays, understand the number of visas needed based on business size and activities.
- Manage Your Finances: Open a local bank account for financial transactions, ensuring compliance with UAE laws.
- Hire Local Staff: Comply with labour laws when recruiting local employees, seeking professional guidance for the recruitment process.
Free Zones vs. Mainland Locations
Below are the differences between Free zones and mainland locations:
| Aspect | Free Zones | Mainland Locations |
| Ownership | 100% foreign ownership | 100 per cent ownership of major business activities |
| Benefits | 9 per cent corporate tax, VAT 5 per cent | 9 per cent corporate tax and VAT depending on the business activities. |
| Business Activities | Restricted to operations within the free zone boundaries, no commercial activities outside | Allows business activities across the UAE |
| Ease of Doing Business | Streamlined processes within one authority | Dealing with multiple government agencies |
| Cost Considerations | Tax-exempt status, but additional fees for lease agreements subject to annual and renewal charges | Lease agreements are usually less expensive, longer terms |
Setup your branch With Shuraa Business Setup
When partnering with Shuraa Business Setup, it’s important to note that certain options may impose restrictions on specific business activities or limit foreign ownership. Additionally, there might be challenges in obtaining work visas, which could impact the recruitment and retention of employees.
It’s crucial to meticulously research and weigh these pros and cons when selecting the optimal setup for your Dubai branch office. By carefully considering your business goals and requirements, you can make an informed decision, positioning your branch office for success in Dubai’s dynamic business landscape.
