Foreign Company Branch Registration in Dubai

1. Determine Your Business Activity

The first step is to define the business activity you plan to conduct in Dubai. The Dubai Department of Economic Development (DED) will require this information as part of your application. Make sure the activity is allowed under Dubai’s business laws and regulations.

2. Choose the Type of License

Foreign companies typically set up branches under the following licenses:

• Mainland License: A branch operating within the mainland of Dubai can conduct business directly with the local market and may require a local sponsor or service agent depending on the type of activity. Mainland licenses typically cost around AED 8,000, plus 5% of office rent costs.

• Free Zone License: If you choose to set up in one of Dubai’s free zones, you benefit from 100% ownership and no need for a local partner. However, free zone companies are usually limited to conducting business within the free zone or internationally.

3. Get Approval from the Ministry of Economy

Foreign company branches must obtain approval from the Ministry of Economy in addition to the Dubai Department of Economic Development (DED). The approval process involves two stages:

• Initial Approval: The first stage costs AED 3,500 for initial approval, which is a prerequisite for registering the branch.

• Branch Registration: The second stage costs an additional AED 7,500 for branch registration. These fees do not include any setup or office rental costs, which will vary based on your location and space requirements.

4. Appoint a Local Service Agent (LSA)

For foreign companies wishing to operate a branch on the Dubai mainland, you must appoint a Local Service Agent (LSA). The LSA is a UAE national who acts as a liaison between your company and the government. This agent will not have ownership but is required to help with government dealings.

5. Register Your Business with the Dubai Department of Economic Development (DED)

Once your business activity and license type are chosen, you will need to register with the DED. The registration process involves submitting the following documents:

• A copy of the parent company’s incorporation certificate.

• A copy of the parent company’s Memorandum of Association (MOA).

• Proof of the business’s legal status in the home country.

• A passport copy of the branch manager.

• An agreement with the Local Service Agent (if applicable).

6. Obtain Additional Approvals

Depending on your business activity, you may need additional approvals from relevant regulatory authorities or government bodies in Dubai. For instance, if you’re in the healthcare or finance sectors, there may be specific licenses and permits required.

7. Lease Office Space

Once you have your registration and approvals, securing office space is the next step. While free zone branches may operate from the free zone itself, mainland branches require a physical office within Dubai. This could be a commercial space, a business center, or even a coworking space, depending on your needs. Office rent costs for a mainland license typically include 5% of the office rent on top of the license fees.

8. Open a Corporate Bank Account

Opening a bank account in Dubai is necessary to manage your company’s finances. Banks in Dubai require documentation such as your company’s trade license, passport copies of the owners, and other legal documents to open a corporate account.

9. Hire Employees (if needed)

Once your branch is operational, you may need to hire staff. Dubai has strict labor laws that protect both employers and employees, so it’s important to understand the employment regulations, visa requirements, and other HR policies.

10. Start Operating

After completing the above steps, your foreign company branch is ready to start operations. You’ll be able to begin conducting business, issuing invoices, and operating as an established branch of your parent company.