How to Start a Foreign Company Branch & Representative Company in the UAE?

foreign branch company in uae

How to Start a Foreign Company Branch

As far as the Gulf region is considered, UAE is the place where you can form the company in a very easy manner. The procedure or the steps to form the company in any Emirates in UAE are very simple and straight forward. Mainly in the UAE, there are three types of jurisdictions to conduct business operations. They are:

  • Mainland or Onshore entities
  • Free Zone entities
  • Offshore entities

All the above-said jurisdictions have their own advantage depends on the business activities or business model.

To form a foreign company in UAE jurisdictions, it is either a foreign branch company formation or a representative’s company. This type of legal entity is treated as the extension of the foreign company.

Let’s discuss further foreign company branches and representative companies in the UAE.

Details about Foreign Company Branch In The UAE

To from a Foreign Company Branch in the UAE, it means the extension of the parent company. A Foreign Company Branch in the UAE can be formed either in a free zone or in the mainland UAE. The business activity of the branch company will be the same as the parent company. Also, to form a Foreign Company Branch in the UAE there is no capital requirement.

What Documents are required to form a Foreign Company Branch In The UAE?

  • Copy of Incorporation certificate of the parent company.
  • Copy of Memorandum of Association / Articles of Association of the parent company.
  • Copy of the goods standing certificate of the parent company.
  • Board of resolution should be prepared by the parent company, mentioning there is no objection to open a branch company and in the same board resolution, the parent company can also mention who will be the general manager of the branch company.
  • Passport copy of the manager.
  • Bank reference letter.

Also note, while forming a Foreign Company Branch in the UAE all the documents of the parent company should be attested and notarized from the UAE embassy of the applicant’s home country. Once we decided to start a Foreign Company Branch in the UAE, we have to initiate the attestation and notarization process because it may take significate time.

Once we finish the attestation and notarization of all the legal documents, then we have to do the translation to Arabic and legalize all the documents of the parent company. These documents should be attested from the Ministry of Foreign affairs and the Ministry of Justice.

Details About Representative Company In The UAE

A representative office is almost the same as a branch company that confuses the common people. But the most significant difference is that branch companies can do the business in the UAE, but the representative companies can only represent their parent company’s presence in the UAE. Representative companies cannot conduct any business activity that earns a profit. Some representative companies can do marketing for their parent company. 

What Are The Documents Required To Form A Representative Company In UAE?

  • Copy of Incorporation certificate of the parent company.
  • Copy of Memorandum of Association / Articles of Association of the parent company.
  • Copy of the goods standing certificate of the parent company.
  • Board of resolution should be prepared by the parent company, mentioning there is no objection to open a representative company and in the same board resolution the parent company can also mention who will be the general manager of the representative company.
  • Passport copy of the manager.
  • Bank reference letter.

Also, note that all the documents of the parent company should be attested and notarized from the UAE embassy of the applicant’s home country. Once we decided to form a representative company in the UAE, we have to initiate the attestation and notarization process because it may take significate time. Once we finish the attestation and notarization of all the legal documents, then we have to do the translation to Arabic and legalize all the documents of the parent company. These documents should be attested from the Ministry of Foreign affairs and the Ministry of Justice. After attesting and notarizing all the legal documents of the parent company then we can proceed for company formation of the representative company in the UAE with the Economic Department.

  • Steps To From A Representative Company In The UAE

Step 1: We have to take initial approval for forming the representative or branch company formation.

Step 2: Once we got initial approval for company formation then as a next step we can go for name approval.

Step 3: As a third step we have to go for activity approval from the economic department.

Step 4: Once all the approvals are done then we can go for court signing with a local sponsor, which is signing the memorandum of association.

Step 5: Once we sign the memorandum of association, then we have to select the office space.

Step 6: After selecting the office space, then we have to register that office space under on company name and get ejari contract under the company name.

Step 7: As the last stage once we are submitting all these documents to the economic department, we will get a license.

Step 8: For getting the residence permit of the manager or staff we have to apply for an establishment card and labour card.

Step 9: Once these cards are ready, we can apply of visa quote.

Step 10: Once the visa quote is ready then we are eligible to apply for the visa.

Emirates Chartered Accountants Group houses Company Formation experts that deal with setting up a foreign company branch and representative company in the UAE by assisting the clients to set up their businesses. Our Company Formation Team handles the complete process with strategic recommendations and negotiations with local stakeholders along with documentation formalities which shall be progressed in accordance with the UAE laws and its regulations.

To Form A Foreign Company Branch & Representative Company In The UAE

 Mr. Viju Divakaran

Asst.Manager – Company Incorporation

Mobile : +971 55 4028899

Phone.  : +971  4 2500 290

Email: viju@emiratesca.com

 

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