When you consider establishing a branch company in Dubai, you are taking an important strategic step towards expanding your business and accessing an exciting new market of opportunities. Dubai is one of the world’s leading cities in the field of business and trade, and provides an ideal investment environment for various companies to expand their presence and increase their influence in the global market.

Establishing a branch of your company in Dubai means benefiting from advanced infrastructure and modern legislation that supports business, in addition to accessing a wide network of local and international companies and clients. Through your branch in Dubai, you will be able to better meet your customers’ needs and deliver your services and products in a more efficient and effective manner.

You must carefully plan the establishment of the branch, from choosing the appropriate legal structure and setting goals and strategies for the branch, to correctly recruiting personnel and managing operations effectively. You should also understand the challenges and opportunities you may face in the Dubai market, such as competition, government regulations and the local business culture.

In this article, we will generally review the important aspects of setting up a company in Dubai , focusing on general strategies and principles without going into the finer details of the procedures. This overview will be a useful guide for you to start the journey of establishing a successful branch in the Emirate of Dubai.

Establishing a company branch in Dubai

Establishing a company branch in Dubai

If you want to establish a company branch in Dubai, you must follow certain procedures and adhere to specific guidelines. Here are the basic steps to establish a company branch in Dubai:

1. Market Study and Planning: Conduct a careful market study to understand the business environment in Dubai and the opportunities available for your company branch. Determine the main goal of establishing the branch and determine the services or products that you will provide in the local market.
2. Find a local partner or agent: Depending on the laws and regulations in Dubai, it may be necessary to work with a local partner or agent to establish the branch. The local partner can be a UAE citizen or a local registered company. The local partner helps facilitate establishment procedures and obtain the necessary licenses.
3. Licenses and Permits: Learn about the licenses and permits required to establish your company branch in Dubai. You may need licenses from relevant authorities such as the Department of Economic Development in Dubai and other government agencies concerned with your specific business activity.
4. Bank Account: Open a bank account for your company branch in a local bank in Dubai. You will need to provide the documents required to open the account, such as a copy of the articles of incorporation, company licenses, and company and shareholder information.
5. Registration and establishment: Submit an application to register and establish the branch with the relevant authorities in Dubai. You will need to submit required documents such as a copy of the articles of incorporation, company licenses, and details of the parent company and shareholders.
6. Compliance with legal requirements: Ensure compliance with all legal and regulatory requirements related to operating the company’s branch in Dubai, such as compliance with labor laws, taxes, and customs regulations.

Please note that procedures and legal requirements may vary according to company activity and local laws. Get a consultation now from our business experts in Dubai to get personalized and accurate advice for your individual case.

How to establish a company branch in Dubai

Establishing a company branch in Dubai requires following several steps and legal procedures. Here is a simple guide to how to establish a company in Dubai :

• Research and planning: Before starting the process of establishing the branch, the parent company must conduct the necessary research and develop a detailed establishment plan that specifies the goals and necessary steps.
• Choosing a trade name: The parent company must choose a trade name for the branch, and must ensure that the name is available and does not violate local laws and legislation.
• Appointing a lawyer: The parent company must appoint a local lawyer accredited in Dubai to represent the branch and submit legal documents.
• Preparing documents: The necessary documents must be prepared, such as a copy of the parent company’s documents (memorandum of association, articles of association, etc.), notarized and certified.
• Submitting a registration application: Next, you must submit an official application to register the branch with the Department of Economic Development in Dubai, submitting the required documents and paying the prescribed fees.
• Obtaining an activity license: A commercial activity license for the branch must be obtained from the Department of Economic Development, according to the activity that the branch intends to practice in Dubai.
• Appointment of a legal representative: A local legal representative must be appointed for the branch in Dubai. This legal representative is responsible for submitting documents and negotiating with local authorities.
• Work visas: Work visas must be obtained for employees assigned to the branch, and these visas can be obtained through the Ministry of Human Resources and Emiratisation in Dubai.
• Ensure legal compliance: The parent company must ensure that all procedures and documents comply with local laws and legislation in Dubai.
• Commencement of commercial operations: After all procedures and requirements are met, the commercial operations of the branch in Dubai can begin and the implementation of the planned activities can begin.

The cost of establishing a company in Dubai

The cost of establishing a company in Dubai is affected by several factors, including the type of company, the size of planned business activities, geographical location, and other factors. However, general estimates of the cost of setting up a company in Dubai can be provided:

1. Licenses and registration fees: These include company registration fees and license fees necessary for the company’s activity, and these fees vary based on the type of company and location.
2. Legal consultation fees: You may need to consult a specialized lawyer to assist you in the company establishment procedures, and the cost of these services changes based on the lawyer and the scope of work required.
3. Rental costs: If a company needs an office or work space, there will be a rental cost, and these costs vary depending on the location and size of the space required.
4. Attorney and Consultant Fees: You may need the services of attorneys or consultants to assist with planning and implementation, and the cost of these services varies based on the complexity of the work and the experience of the attorney or consultant.
5. Advertising and marketing costs: You may need to invest in advertising and marketing to promote the company and attract customers, and these costs change based on the marketing strategy and the scope of the campaigns.
6. Employee costs: If a company needs employees, there will be a cost for salaries, benefits, health insurance, and other business-related expenses.
7. Company management fees: These fees include daily management costs such as electricity, water, communications, and maintenance.

Documents required to establish a company in Dubai

Establishing a company in Dubai requires submitting a set of necessary documents. This is a list of basic documents that are usually required to establish a company in Dubai:

1. Copy of Passport: A coloured, certified copy of the passport must be provided to all major shareholders and directors.
2. Personal photographs: Some government agencies may require recent personal photographs of shareholders and key directors.
3. Registration application form: The company’s registration application form must be filled out accurately and submitted to the competent authorities.
4. Parent company documents: A copy of the parent company’s documents, such as the articles of association and articles of association, must be submitted, and these documents must be certified by the competent authorities.
5. Legal authorization: A legal authorization must be provided that allows the authorized person to represent the company in the incorporation and registration process.
6. Bank letter: A letter must be obtained from the bank proving the transfer of the capital required to establish the company to a bank account in Dubai.
7. Lease Contract: If the company plans to rent an office, a copy of the lease contract or rental license must be provided.
8. Business Plan: Some government authorities may require the submission of a detailed business plan outlining the company’s goals and plans.
9. Company Registration Forms: Registration with the Department of Economic Development may require filling out and signing official company registration forms.
10. Personal papers for officials: Government authorities may require personal papers for legal officials and key employees of the company.

Establishing a company branch in Dubai

Licenses required to establish a company in Dubai

To establish a company in Dubai, you may need to obtain several licenses and permits depending on the type of company and its activity. Here is a list of some common licenses that may be required:

1. Business License: All companies operating in Dubai are required to obtain a license for their business activity from the Department of Economic Development.
2. Profession license: It is a license related to the company’s activity, issued by the Department of Economic Development.
3. Municipality License: Granted by the Dubai Municipality and necessary for some activities such as restaurants and hotels.
4. Civil Defense License: Issued by Civil Defense and necessary to ensure that buildings and facilities comply with security standards.
5. Environment License: Issued by the Dubai Environment Agency and necessary for certain activities that may affect the environment.
6. Health and Safety Licensing: Companies in some sectors such as food and beauty may be required to obtain a license from health authorities.
7. Warehouse and storage license: This is an appropriate license for facilities that store goods.
8. Transportation license: This is a license for transportation and delivery companies.
9. Advertising License: A company may need a permit to place advertising signs.
10. Work License: May be necessary to hire foreign employees in some cases.

Advantages of establishing a company in Dubai

Establishing a company in Dubai offers many competitive advantages and opportunities for entrepreneurs. Here are some of the benefits and advantages you may get when establishing a company in Dubai:

• Thriving Business Environment: Dubai has a dynamic and prosperous business environment that provides broad opportunities for growth and expansion for companies in various sectors.
• A global business center: Dubai is a global business center where companies from all over the world meet, providing opportunities for companies to deal with international companies and increase their scope of work.
• Advanced Infrastructure: Dubai has a developed and modern infrastructure that supports businesses with high-quality facilities such as international airports, ports, highways and modern communications.
• Supportive legal legislation: Commercial laws and legal legislation in Dubai provide a favorable business environment and protect the rights of investors and companies.
• Diversified Economy: Dubai’s economy, which is based on many diverse sectors, including real estate, tourism, trade and financial services, provides opportunities for diversification and growth for businesses.
• Easy access to regional and global markets: Thanks to its strategic location, companies in Dubai have easy access to regional and global markets, facilitating international trade and business expansion.
• Government Facilities: The Dubai Government provides a range of facilities to companies, including electronic government services and simple procedures for establishing companies.
• Tax-free environment: Dubai has a favorable tax environment as it does not impose taxes on personal or corporate income in most sectors.

When there is talk about establishing a company branch in Dubai, attention turns to the enormous opportunities and fruitful economic environment that this global city offers. Dubai is a global financial and commercial centre, making it an ideal destination for establishing corporate branches and expanding businesses.

Establishing a company in Dubai requires a clear vision of future goals and strategies. Businesses can benefit from Dubai’s advanced infrastructure, flexible government policies, and distinguished human resources, enhancing opportunities for growth and prosperity.

Important aspects that must be considered when establishing a company branch are extensive research and analysis of the market, determining appropriate plans and strategies, and selecting a qualified management team and experienced local employees.

Emphasis should also be placed on the availability of specialized legal and financial advice to help overcome the legal and administrative challenges that the company may face in the process of establishing the branch.

When these steps are implemented correctly and thoughtfully, the company’s Dubai branch can be successful and achieve growth and sustainability in the local and global market.

In conclusion, establishing a company branch in Dubai is a strategic step that reflects aspirations for expansion and development, and must be implemented carefully and professionally to ensure the achievement of the set goals and sustainable success in the future.

The most frequently asked questions about establishing a company branch in Dubai