A branch office is a business that represents the parent company in a particular country. These offices can also represent a number of companies. In the United Arab Emirates (UAE), the headquarters of the parent company is located in Dubai. This company is known as the parent company, which is also called the home office. The home office has several branches, such as a London branch and a Singapore branch. These branches are similar to foreign branch offices. There are different types of foreign branch offices, such as regional and international offices.
Appoint a Local Service Agent
Many companies need to appoint a local service agent for Business setup in Dubai. This is a person who represents the company’s interests while it is doing business in a particular country. You can get a local service agent in many ways. If you are a UAE national, you can get a local service agent by simply filling out an application form and going to a DED branch. You should know that you have to pay an initial fee for the application and then a monthly fee for your local service agent. If you are not a UAE national, you can also get a local service agent. You can hire one if you have a company that is owned by UAE nationals.
Obtain Approval from the MOE
The application for obtaining approval from the MOE includes the details of the company i.e., head office, nature of the business, share capital, the name of the general manager in UAE, etc. along with the mandatory documents, such as:
- Memorandum of Association (MOA)
- Article of Association (AOA)
- Certificate of Incorporation
- Parent Company’s Good Legal Standing Certificate
- Board Resolution stating the formation of a Branch Office
- Power of Attorney in favour of the General Manager, giving him the rights to operate and manage bank accounts on behalf of the parent company.
Obtain a commercial licence from the DED
For Company registration in Dubai is a commercial licences must first apply to the Ministry of Economy. After the application is submitted, the Ministry of Economy will send the initial approval letter to the two local departments – ADED or DDED. The required documents include:
- MOE initial approval letter
- Copy of documents submitted to MOE
- Copy of proposed lease in UAE (known as “Tawtheeq” in Abu Dhabi and “Ejari” in Dubai)
- Engagement letter from a locally registered UAE auditor confirming company existence and two-year financial statements of the parent company.
- After the initial approval letter is issued, the company will submit a formal application for the commercial licence with the department.
Ministry of Economy (MOE) Registration
It is essential to make sure that your company is registered properly. To be able to do this, you need to complete the MOE registration process. You can do this by applying for a Foreign Branch Trade Licence from the Department of Economic Development. You will need to provide all the information about your company, such as its legal address, VAT number, company status, registration number and the address of your headquarters. You will need to provide all the necessary documents to the relevant departments. The next step will require you to submit the required documents to the relevant authorities. After that, you will be required to pay the applicable fees.