Ways to establish a company branch in Dubai

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When you think about ways to establish a branch company in Dubai, you are reviewing an important strategic step to expand your business and enhance your presence in a thriving market like Dubai. Dubai is a gateway to both opportunities and challenges, so it is important to understand the different aspects of this process and prepare well to achieve success.

Establishing your company\’s branch in Dubai includes several important aspects, including choosing the appropriate legal structure for the branch, determining the goals and strategies you want to achieve from the presence of this branch, providing the necessary infrastructure to work efficiently, in addition to dealing with and adhering to local and international legislation.

Sure, establishing a company branch in Dubai requires careful study and analysis of the market, competitors, and potential customer needs, which requires good strategic and financial planning. Recruitment and training aspects must also be considered to ensure that professional and qualified personnel are available to manage the branch successfully.

In this article, we will generally review the general foundations and principles for establishing a branch of your company in Dubai, focusing on the strategic and planning aspects without going into details of the precise methods. This comprehensive overview will be a useful guide for you to get started on this important investment journey in Dubai\’s diverse and dynamic market.

Ways to establish a company branch in Dubai

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Ways to establish a company branch in Dubai

When you consider establishing a branch company in Dubai , you need to consider several important aspects that affect the success of your business in this dynamic market. Establishing a branch of a company in Dubai is not just a legal procedure, but rather a strategic step that requires careful study and good planning to achieve your business goals. Dubai is an ideal business destination due to its advanced business environment and the vast opportunities it offers. Here are some basic ways to establish a company branch in Dubai:

Market study and economic analysis: You must start with a good understanding of the Dubai market and the sector to which your company belongs, by conducting a comprehensive market study and economic analysis of opportunities and challenges.
Choosing the appropriate type of branch: You must choose the appropriate type of branch, whether it is a branch of the parent company or an independent branch, based on your business strategy and your legal and regulatory needs.
Apply for the necessary licenses and approvals: You must obtain the necessary licenses and approvals from the relevant government agencies in Dubai, such as the Dubai Department of Economic Development (DED) and the Dubai Financial Affairs Authority (DIFC), depending on the location of your company branch.
Determine the location and main office: You must select a suitable location for your company branch in Dubai, and secure a head office that is compatible with your business needs and local law requirements.
Appointment of a Branch Manager: You must appoint a local branch manager in Dubai, in accordance with local laws and requirements of government bodies, to ensure efficient operation of the business in accordance with legal legislation.

In short, establishing a company branch in Dubai requires careful consideration and strict legal procedures, and can be a successful strategic move if well planned and properly implemented.

Steps to establish a company in Dubai

Dubai is one of the most important commercial and economic centers in the world, offering an ideal environment for entrepreneurship and establishing companies. Entrepreneurs enjoy endless opportunities in this vibrant city, where they can benefit from advanced infrastructure, flexible legislation, and a prime geographical location. In this article, we will take a look at the basic steps for setting up a company in Dubai. Here are the steps for establishing a company in Dubai :

Study the market and formulate a business plan: Study the local market and identify opportunities and challenges.
Choose the company type: Decide whether you want to establish a sole proprietorship, limited liability company, partnership, or branch.
Choose a company name: Choose a company name and make sure it is not similar to any existing company and complies with local regulations.
Determine location and legal address: Determine a location for the business and ensure compliance with licensing requirements and regulations.
Preparing the required documents: Prepare the required incorporation documents
Submitting an application for a license: Submit the documents to the authorities concerned with licensing, such as the Department of Economic Development or the Emirate Authority.
Completing legal procedures and licenses: After approval, complete the necessary legal procedures such as signing contracts and documentation.
Obtaining work permits and visas: You may need a work license and labor permits. Apply for these licenses after obtaining the license.
Opening a bank account for the company: Open a bank account in the name of the company and deposit the required capital into it.
Registration in other government agencies (as needed): You may need to register with other government agencies depending on the company’s activity.
Starting work: After completing all procedures, you can officially start work.

These steps depend on the type, size and requirements of the company, and may require additional procedures depending on the individual case.

Documents required to register the company branch in Dubai

To register a company branch in Dubai, the documents required may vary slightly depending on the type of parent company and the requirements of local authorities. However, here is a general list of required documents:

Branch registration application form: It is filled out and submitted to the local authorities in Dubai, and contains information about the parent company and the branch.
A copy of the parent company’s articles of incorporation: A copy of the parent company’s articles of incorporation must be submitted, which contains information such as the company’s name, activity, and organizational structure.
Legal authorization: If there is a person authorized to represent the branch, a legal authorization must be presented proving his authority to do so.
A copy of the passport of the general manager of the branch: A copy of the passport of the general manager of the branch must be submitted.
Copy of the parent company’s commercial registration certificate: A copy of the parent company’s commercial registration certificate must be submitted, to show that it is registered and effective.
Parent company financial report: Local authorities in Dubai may require the parent company to submit a financial report to ensure its financial stability.

What are the differences between a branch company and the parent company?

the side	company branch	main company
Establishment	It is based on an existing parent company and does not require separate incorporation procedures	It requires separate incorporation procedures and registration as an independent company
Legal structure	It has no legal personality independent of the parent company	It has a legal personality independent of the parent company
the responsibility	The parent company bears full responsibility for the branch\’s operations	The parent company bears responsibility for its business and for the business of its branches
Revenues and losses	Revenues and losses go back to the parent company	Revenues and losses accrue to the parent company and subsidiaries
Administration	The branch is managed by the parent company	The parent company and subsidiaries are managed independently
Control and inspection	It is subject to the supervision and inspection of the parent company	There may be a level of oversight and inspection from the parent company but branches can also be subject to local oversight
finance resource	The branch can benefit from the financial and technical resources of the parent company	The parent company and subsidiaries benefit from the same resources

This table summarizes some of the main differences between the company\’s branch and the parent company in Dubai. The parent company provides control and oversight over the branches, while the branch gets support and resources from the parent company.

Taxes that the company branch must pay in Dubai

In the UAE, the branch is subject to certain taxes and fees. Here is a list of some of the taxes that a company branch may have to pay in Dubai:

Value Added Tax (VAT): VAT was imposed in the UAE in 2018 at 5% on most goods and services.
Income tax: The UAE is considered one of the countries free of income taxes for individuals and companies. However, the branch may be subject to income taxes if it has business activity in the country.
Registration and renewal fees: There can be fees for branch registration and renewal annually.
Municipal fees: Municipal fees vary depending on the type of activity and branch location.
Environmental and health fees: If the company is active in sectors that require environmental or health licenses, there may be fees associated with them.
Customs duties: If a company imports or exports goods, there may be customs duties that apply.

Establishing a company branch in Dubai

Legislation that the company branch must adhere to in Dubai

In Dubai, a company branch must adhere to a variety of local and national legislation and regulations. Among these legislations:

Corporate and trade laws: These include laws that specify the types of permitted companies, the conditions for their establishment and management, and general labor and trade legislation.
Taxes and Fees: The branch must comply with local tax legislation, including value added tax (VAT) and income taxes if applicable.
Labor laws: These laws regulate employment conditions, contracts, and employees’ rights and duties.
Occupational safety and health: This legislation establishes requirements to ensure the safety and health of workers in the workplace.
Environment: Environmental legislation regulates the use and impact of companies on the local environment and the application of environmental policies.
Financial legislation: This legislation stipulates requirements for financial reporting, disclosures, and auditing practices.
Immigration and Residence Legislation: This legislation regulates immigration and residency procedures for foreign workers and investors.
Customs legislation: This legislation specifies procedures related to import, export and customs.

Fees for establishing a company in Dubai

Company establishment fees in Dubai vary according to the type of company, its activity, and its location, and may also be affected by the additional services needed by the business owner. Here are some of the basic fees you can expect when setting up a company in Dubai :

Company registration fees: These fees include the costs of registering the company and notarizing the necessary contracts and documents.
License fees: There may be fees to obtain the necessary licenses for the company\’s activity, such as a business license or municipal license.
Legal Services Fees: If you use the services of an attorney or legal advisor to assist you in the incorporation process, consulting or legal fees may be added to the cost.
Chamber of Commerce Registration Fees: This fee includes registering the company with the local Chamber of Commerce.
Real estate fees: If you are purchasing or leasing a corporate office, you will incur real estate fees related to the process.
Accounting and auditing fees: You may need accounting and auditing services to provide the required financial reports, which may require paying additional fees.
Fees for establishing an individual company: If you intend to establish a sole proprietorship, there may be special fees for this.
Visa and permit issuance fees: If you intend to employ foreign workers, you may need to pay fees to issue the necessary visas and permits.

Establishing a company branch in Dubai is considered an important strategic step that reflects the company\’s desire to grow and expand into new markets. Dubai provides an ideal environment for these operations thanks to the availability of advanced infrastructure and government policies that are open to investment and business.

One of the main benefits of establishing a company branch in Dubai is access to a diverse and wide international market, as Dubai is a global financial and trade platform that attracts companies and investors from different parts of the world. Dubai also provides advanced infrastructure in the field of transportation, logistics and communications, which facilitates distribution, marketing and service provision with high efficiency.

In addition, Dubai offers legal and tax advantages that make establishing a company branch there an attractive option for companies wishing to grow and expand. These benefits include flexible government policies and full support for business and foreign investments.

We cannot forget the vital role of consulting companies and lawyers specialized in the field of company establishment in Dubai, as they can provide the necessary advice and guide companies through the branch establishment process efficiently and smoothly.

In general, establishing the company\’s branch in Dubai is an important opportunity to benefit from the benefits of the global market and the distinguished investment environment, which contributes to strengthening the brand and achieving success and sustainability in the business.

The most frequently asked questions about establishing a company in Dubai

What types of companies can be established in Dubai?

Companies can be established in Dubai in various forms such as sole proprietorships, limited liability companies, and public and private joint stock companies.

Is a local partner required to establish the company?

A local partner is required in some cases, but there are types of companies that can be established without a local partner.

What are the tax benefits of establishing a company in Dubai?

Companies in Dubai enjoy exemption from income taxes for a specified period, in addition to no corporate and capital tax.

Can I establish a company in Dubai with only a copy of the passport?

No, other documents must be provided, such as financial proofs and necessary agreements depending on the type of company.

How long does it take to establish a company in Dubai?

The time for incorporation varies depending on the type of company and the completion of legal and administrative procedures, and usually takes a few weeks.