Foreign companies are legally allowed to open up their offices in Dubai with 100% ownership guaranteed to them.
There are two kinds of branch office setups available to foreign companies. A representative branch office is one which may indulge in promotion and advertisement of the foreign company’s products or services. On the other hand, a branch office is allowed to perform all the activities which the parent company is already performing albeit in a foreign location. In both cases, the company is required to submit at least 50,000 Dirhams as bank guarantee in the name of the Ministry of Economy. It is also a part of the company incorporation process.
Only the manager appointed by the BOD of the parent company will be authorized to represent the company in all matters in Dubai.
Salient Features of a Branch Office/Representative Office
- A branch office can perform the same duties & functions as the parent company
- A branch office can forge its own contracts with other businesses in Dubai
- A representative office can run promotions on behalf of the parent company
- A representative office is prohibited from doing business or getting into contracts with other businesses in Dubai
- In certain cases, branch offices are required to seek permission from the Ministry of Economy in order to perform certain functions.
KWS-ME Offers These Services
- Drafting MOAs and other important documents for incorporating your branch office
- Obtaining authorizations and approvals from different government organs
- Introduction to bank accounts
- Helping your business find a reliable and suitable Emirati service agent
- Handling your documentary requirements on your behalf
- Helping you find a place for your branch/representative office