Opening a branch office in sharjah

Last updated on November 29, 2021

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Opening a branch office in Sharjah is one of the major things which a businessman conducts here in the UAE. More often, business owners perform a business setup in Sharjah; and expand into the free zones to do business over there. Nevertheless, there is quite a big confusion between branch office and representative office.

Opening a branch company in Sharjah only means that you already have a license company in the UAE; or out side of UAE. Approximately the same procedure of choosing an office; warehouse and site is applied when you form a branch of a company. You would require a national service representative when you set up a branch. This agent should be either an individual; who is a UAE citizen or a company which is own by a UAE nationals. It must be noted, that this representative will not have any share in the branch. This is only done because the federal and local government requires this too.

Types of branch office for Opening a branch company in Sharjah

There are four common kinds of branch offices to consider Opening a branch company in Sharjah. The one which will best suits your requirements will depend on your business activities; your company formation and a few other important factors.

Opening a branch office in Sharjah as a corporate shareholder

Here the mother company can be base either in the UAE or abroad. Business shareholder offices permit for an individual shareholder to hold a stake in the business along with the license. Such as, a business can be own 50% by a UK company; 25% by an individual and 25% by another individual. It is also possible to have numerous corporate owners.

Opening a branch office in Sharjah as a Branch office

This is the most general setup in the UAE. As with the corporate shareholder option, the branch company’s mother can be based either in the UAE or abroad. However, branch companies differ from business shareholder offices in that the mother company remains the single owner. In isolation, there is no share capital compulsory to open a branch office. The branch company also uses the parent’s articles of inclusion.

Opening a branch office in Sharjah as a Representative Office

offices of the agent are generally the most cost-effective of all the branch types. Again, the parent company can be based either in the UAE or overseas. The main deference with representative offices is that; their business activities are just to promote and sourcing work for the parent company. Representative offices are not allow to make a profit in the UAE; and must outsource all work back to the parent company.

Opening a branch office in Sharjah as a Subsidiary

Subsidiaries are possibly the most exceptional of the branch kinds; in which they are considered a separate officially authorize identity to the parent company; and should be manage from within the UAE. It means that the subsidiary assumes whole liability for its actions as well as business activities. Parents of subsidiaries can be base in the UAE; or out of the country but management of the subsidiary itself with in the UAE.

Benefits of opening a branch office in sharjah

As with all other business setup, benefits does going alongside with Opening a branch office in Sharjah. Moreover, businessmen who already contain their organizations in the UAE; would like to provide their customers in other parts of the country by setting up other branch; so that to make sure that the order for their products and services is full fill. This is a best way to meet their customers half way and even recognized a better rapport; than what’s already been recognized between them and the consumers.

Furthermore, with this type of expansion; the name of the company also has the opportunity to be recognized by other consumers; and might even grab a new target market that they can put in to their potential customers. This will also provide the organization a strong presence in the country; as it gradually works its way up to the prominent names in its industry.

Setting up a branch gives a move up for the profits of the whole enterprise. Apart from this, the people will see how concrete your company foundation is; which you has managed to enlarge into somewhere else. So to say, when done right as well as execute properly.

This is known to be a general procedure that a local company does; when they have already develop a strong relationship with a number of clients or consumers. A study must also be done before going onward with such decisions; as it can be risky if you don’t have any figures to base on for taking this undertaking.

The best thing about receiving a national service representative is that they deal with the government authorities. They pay attention of all the requirements that need to be done or processed for your branch setup to get open.

Benefits for how to open a branch office in uae

Tax benefits: It’s not possible to discuss the advantages of setting up any kind of company in the UAE; without touching on the country unbelievable tax policy. Depending on jurisdiction and state of origin; parent companies of branches can take benefit of the UAE’s 0% corporate tax rate.

Audit trail for Opening a branch company in Sharjah

Auditing for a multi-national companies can be a challenge. Setting up a branch office helps to defeat much of such a pain. All money which passes between the parent as well as branch company is officially tracked. It provides a watertight audit trail for parent companies which need audited books.

Low administrative burden for Opening a branch company in Sharjah

Along with office and auditing, running offices all around multiple countries can be complex. Again, much of such challenges are avoided when operation a branch office. There is not generally a need for a separate finance role within UAE branch offices; as they are not obligatory to submit audited accounts.

Cost effective route into new markets for Opening a branch office in Sharjah

Coming to new markets mainly those from abroad can be expensive. Not so when forming a branch company in the UAE. As there is no share capital requirement; branch offices provide an opportunity to business setup without high upfront costs. What is more, as branch offices are frequently smaller than separate organizations; running expenses are usually lower too.

Try before you buy for Opening a branch company in Sharjah

All the probability studies as well as field research in the globe; can never match up to actual experience of trading in a new market. Branch office provide an experience of the real knowledge; allowing foreign businesses an opportunity to obtain a foothold in the local market; and create the viability of opening a superior enterprise within the UAE.

How to open a branch office in UAE

If you are searching to get a presence in the UAE; and are convince for the branch office; then the good news is that it is very straight forward to get start. The entire process comprises four steps.

First, get in touch with your agent law firms, licensing jurisdiction or a company formation consultant. With specialist advice, your expedition towards a UAE branch office can really find under way.

Next setp in how to open a branch office in uae is to make a decision; that is on what company structure best suits your desires. Different branch office types offer different compensation. For those who hope only to make business to a company established else where; an agent office is the perfect solution. If you desire to trade within the UAE but keep on managing your business from abroad; a company shareholder office or branch company office are the finest options. However, if you wish to form an independently managed company in the UAE, a subsidiary is the approach to go.

Then, bring together the necessary paperwork. If your selection of branch contains a corporate shareholder; now it is the time to start; compiling as well as attesting the important corporate documents of the parent company. These include: certificate of incorporation; memo and articles of association or certificate of incumbency / certificate of excellent standing; board resolution resolving the integration of the new company; power of attorney giving general/limited power of attorney to the individual in charge of the new company.

Finally, the last step for Opening a branch office in Sharjah is the license application. Once you confirm that all of the paper work meets the license criteria; then you can carry on with applying for your branch office in Dubai.

Requirements for how to open a branch office in uae

  • copies of Passport for the shareholders
  • Passport copies and CV (resume) of the manager. The manager should have a university degree.
  • Personal information sheet for each and every shareholder and manager
  • evidence of trade name reservation for the new branch
  • evidence of initial approval for the activities for the new branch
  • MOA of your existing main branch at the place of origin; this should be notarize from the UAE notary public.
  • Article of Association of your existing main branch at the place of origin. This should be notarized by the UAE notary public.
  • The board of directors of your existing main branch will determine the board resolution; that is to express their intent that how to open a branch office in uae.
  • A valid Certificate of Registration / trade license of your existing main branch
  • Also a valid Chamber of Commerce certificate of your existing main branch
  • Notarized Power of Attorney appointing Us as your officially agent; in order to act on your behalf.
  • Lease agreement (documents) as testimony of a physical address of your new branch; the least space require is 550 sq. ft. (around 60 sq. m.). Your registration agent, We can help out you in searching for your physical address.
  • Your main branch company profile