Last updated on November 29, 2021
A common way for a foreign company registration in Dubai is to retain 100% foreign ownership; that is under the Commercial Company Law in the UAE; they can set up a branch office or representative Office in Dubai (RO); which allow 100% ownership to the parent company. This kind of set up do not have a separate legal structure; and so consider as an extension of the foreign company registration in Dubai; which remains liable for their activities.
A Branch setup in UAE is allow to take part in commercial activity in UAE and to earn some profits. It is license for the purposes to perform a commercial activity; but it can only engage in activities which a foreign company performs in its home jurisdiction.
An RO is not allow to earn profits within the UAE; it is only use for the purpose of marketing as well as the promotion of the products and services; of its foreign company in the UAE.
Both Branches as well as ROs must operate under the authority of a commercial registration; and license in the name of the foreign company; and for both we need to appoint a Local Service Agent (LSA); which has to be a UAE national individual or a 100% UAE national own corporate entity.
Key steps to foreign company registration in Dubai
Speak with one of our consultants who will guide you on the correct legal structure; depend on the type of activity that a business plans to start in the UAE and its future markets. A client may additional choose to obtain a legal view to confirm our advice. Appoint a Local Service Agent (LSA); which must be either a UAE national or a company which is under the sole ownership of UAE local. There are a number of 100% local own LLCs; which are fully manages as well as controls through a power of attorneys and other legal agreements. This type of a company can be use as the LSA.
Document for branch or representative Office in Dubai
To register a foreign company in Dubai you need the following documents.
- Certificate of incorporation (or equivalent), MOA as well as AOA; and a certificate of good standing Which can be obtain from the parent company’s home jurisdiction;
- A board resolution to authorize the opening of the Branch or RO; to appoint a GM and to grant a power of attorney to the GM; and to confirm that the company accepts accountability for the obligations of the office when open in the UAE;
- A statement set out the company’s core tasks and activities;
- Audited accounts of the parent company for the last 2 years;
- 1 x CV for the General Manager;
- 2 x Certified proofs of address for the General Manager;
- Passport copy for the General Manager;
- 1 x Professional / bank reference letter for the General Manager.
All docs needs to be notarize as well as attest; that is in both the home country and at the relevant UAE consulate. You also need to start notarization process as early as possible because it can take a lot of time.
If the docs are not in Arabic; then you need to translate this into Arabic from an official translator; before we can present this to the authorities in the UAE. You need to submit all the documents to us for foreign company registration in Dubai; which we will then manage the application process from start to finish. The licensing authority will be the DED, with the approval of Ministry of Economy.
Advantages of a foreign company registration in Dubai
- foreign company registration in Dubai can retain 100% foreign ownership in the UAE;
- The foreign company registration in Dubai may legally conduct the approved activity; in its license anywhere in the UAE, including Free Zones;
- Foreign company is only need to show 2 years of setup time; as well as need to show only 2 years of business experience in its home country;
- No limits on the site where the company can rent or buy office premises;
- The gov’t has remove any paid up capital requirements.
Disadvantages of a Branch or Representative Office in UAE:
- A branch office in Dubai has some restriction in respect of its trade activities; mainly to trading in the UAE main land. If the parent company involve in trading; then it can only incorporate an RO for the purpose of marketing or promoting its products and services; or to enable an agreements between the parent and its customers. However most service activities can be lead through a branch.
- It take Longer time to setup as compare to the free zone company, typically 8 to 10 weeks;