Dubai is one of the world’s most attractive investment destinations, providing an ideal environment for companies seeking to expand and strengthen their presence in regional and global markets. Among the options available to companies seeking to expand, establishing a branch in Dubai stands out as an ideal option, allowing parent companies to benefit from the emirate’s unique advantages.

One of the most important advantages of establishing a branch in Dubai is the ability to conduct the same activities as the parent company without the need for a local partner, in addition to the ease of obtaining licenses and tax exemptions granted by free zones. A branch in Dubai also provides access to a diverse and thriving market, as well as advanced infrastructure and global logistics services that facilitate expansion and growth.

In this article, we will review in detail the advantages of establishing a company branch in Dubai , highlighting the most important benefits that make this step a smart investment that guarantees companies success and sustainability in a competitive and supportive business environment.

What is the company branch in Dubai?

A Dubai branch is a legal extension of a foreign or local company established outside the emirate or in another country. This type of entity allows parent companies to conduct the same business activities in Dubai without the need to establish a new, independent entity. The branch remains fully subordinate to the parent company, meaning all financial and legal obligations fall on the parent company.

Corporate branches in Dubai enjoy several advantages, including access to the thriving UAE market, expanding business operations, and taking advantage of Dubai’s advanced infrastructure. The branch can be established on the mainland under the supervision of the Department of Economic Development (DED), or in one of the free zones, where it enjoys benefits such as tax exemptions and 100% foreign ownership.

A Dubai branch does not require a local partner, but a local service agent is required if the branch is affiliated with a foreign company and intends to operate on the mainland. The branch must use the same trade name as the parent company and conduct the same business activities. It must also obtain all necessary licenses and permits to operate legally.

Steps to establish a company branch in Dubai

Establishing a company branch in Dubai requires following a set of legal and administrative procedures, whether the branch is affiliated with a local or foreign company. Here are the basic steps for establishing a company branch in Dubai:

Choosing the legal location of the branch:
It must be determined whether the branch will be established on the mainland under the supervision of the Department of Economic Development (DED) or in one of the free zones, as the laws and procedures differ between them.

Obtaining initial approvals:
A formal application is submitted to the relevant authority, such as the Dubai Department of Economic Development (DED) or the selected free zone authority, along with a copy of the parent company’s commercial register, articles of association, and registration certificate.

Appointing a Local Service Agent (For Foreign Companies in the Mainland)
If a foreign company opens a branch in the Mainland, the law requires the appointment of a local service agent (a UAE national), who does not own any share in the company but assists with legal procedures.

Cost of establishing a company branch in Dubai

The cost of establishing a company branch in Dubai varies based on several factors, including the type of parent company, the nature of the business, and the location of the branch—whether on the mainland or in a free zone. Costs include registration and licensing fees, which vary depending on the regulatory authority responsible for issuing licenses, in addition to the cost of renting an office, which is a basic requirement for opening a branch.

Costs related to legal and administrative services, such as preparing necessary contracts and certifications, must also be factored in, along with government fees associated with branch registration procedures and obtaining official approvals. If the branch requires hiring employees, there are also costs for visas, residency, and health insurance, which are part of the initial operating expenses.

If you choose to establish a branch in a free zone, some areas offer benefits such as tax exemptions and reduced customs duties, which can positively impact the overall cost. On the other hand, opening a branch on the mainland requires compliance with the regulations of the Dubai Department of Economy and Tourism, which may add additional licensing requirements and operational costs.

In general, the total amount required to establish a company branch in Dubai depends on proper financial planning and choosing the optimal location, while taking into account all operational expenses and legal compliance to ensure a successful launch of the new branch.

Types of company branches in Dubai

Each of these types of branches differs in terms of legal requirements, costs, and procedures required for registration, according to the laws of Dubai and the United Arab Emirates.

Documents required to establish a company branch in Dubai

To establish a branch of a company in Dubai, whether the parent company is local or foreign, a set of documents must be submitted to the relevant authorities, such as the Department of Economic Development (DED) if the branch is established on the mainland, or the Free Zone Authority if the branch is located in one of the free zones.

Basic documents required

• A copy of the parent company’s commercial license, notarized and certified by the official authorities.
• The parent company’s articles of association and bylaws, notarized and translated into Arabic (if not in Arabic).
• Certificate of registration of the parent company from the competent authority in its country of origin.
• The Board of Directors’ decision to approve the opening of a branch in Dubai, with the appointment of a responsible manager.
• A legal power of attorney for the manager responsible for the branch, certified by a notary public.
• Passport of the responsible manager and recent personal photos.
• A copy of the commercial office lease contract certified by the Real Estate Regulatory Authority (Ejari) if established on the mainland.
• Appointment of a local service agent (only required for branches of foreign companies on the mainland).

Additional documents depending on the activity

• Regulatory approvals from the relevant authorities if the activity requires a special license (such as financial or medical activities).
• Branch business plan for some business activities, such as financial or investment consulting.

There’s no doubt that the advantages of establishing a company branch in Dubai make it an ideal choice for companies seeking expansion and taking advantage of promising investment opportunities. Thanks to flexible laws, tax exemptions, and modern infrastructure, a company branch can achieve rapid growth and benefit from an open global market.

If you’re considering expanding your company’s presence in the Gulf and Middle East, establishing a branch in Dubai gives you a golden opportunity to take advantage of the emirate’s many advantages, helping you achieve success and expand in a dynamic and prosperous economic environment.

Top Frequently Asked Questions About Establishing a Company Branch in Dubai