Foreign Company Registration In UAE

 

Establish Your UAE Presence as a Branch or Representative Office

When an overseas business wants to operate inside the UAE without forming a new local company, it can register itself as an extension of the parent entity. This is called foreign company registration.

The UAE allows two main options:

  • Branch of a Foreign Company

  • Representative Office of a Foreign Company

Both structures give international companies a formal, legal footprint in Dubai Mainland or other emirates.


Branch of a Foreign Company

A UAE branch is not a separate or independent business. It remains fully connected to the parent company abroad.

Important features:

  • The branch functions as an extension of the parent company

  • Ownership stays with the foreign head office

  • It can conduct professional, technical, and service activities

  • Local management is appointed to run UAE operations

  • Profits and liabilities belong directly to the parent company

  • It cannot undertake general trading inside UAE Mainland

Because the branch is not independent, the legal responsibility flows from the head office. All contracts, employees, and operations are executed in the name of the foreign company.

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Representative Office

A representative office is even more limited.

Here’s what it really does:

  • Promotes and markets the products or services of the parent company

  • Builds relationships with UAE customers

  • Conducts market research

  • Coordinates between UAE clients and overseas head office

What it cannot do:

  • It cannot generate revenue in UAE Mainland

  • It cannot sign commercial contracts for services

  • It cannot perform the full range of parent company activities

The role is purely supportive and promotional.


Ministry of Economy Approval

For both branch and representative office registration:

  • Prior approval from the UAE Ministry of Economy is mandatory

This step involves submitting:

  • Parent company incorporation documents

  • Board resolution

  • Audited financial statements

  • Activity details

  • Proposed manager information

N D Savla UAE prepares and files the entire application dossier so approvals come through without confusion.


UAE National Service Agent

Another compulsory requirement is appointing a local agent.

  • A UAE national service agent is required in both cases

  • The agent is not a shareholder

  • The agent holds no ownership in the business

  • His role is to represent the branch before government departments

This arrangement ensures that the foreign company keeps full control while fulfilling UAE legal norms.


Financial Requirements

Foreign company license processing needs specific guarantees:

  • AED 50,000 bank guarantee favoring the Ministry of Economy

  • Guarantee must be issued by a UAE bank

  • It is used only for license approval

  • Renewed periodically as per ministry rules

There is no minimum share capital requirement since no new company is created. However the parent company must show financial strength through audited accounts.


Documents Required

Typical paperwork for foreign company registration includes:

  • Certificate of Incorporation of parent company

  • Memorandum and Articles of Association

  • Board Resolution to open UAE branch

  • Power of Attorney for the Manager

  • Audited financial statements

  • Passport and visa copies of Manager

  • Office tenancy contract

  • Ministry of Economy application forms

Our team helps you translate, attest, and organize all these documents in the exact format required.


Office Space Requirement

Just like local companies:

  • Renting a physical office or facility is mandatory

  • Ejari registration is required

  • The location must match the approved activity

  • Office is linked directly to the trade license


Visa and Employment

A registered branch can:

  • Obtain residence visa for the appointed Manager

  • Sponsor employees

  • Recruit staff through the UAE Labour Department

  • Register for WPS and bank payroll

The number of visas depends on office size and immigration approval.


Tax and Compliance After Registration

Once the branch is approved, it may require:

  • VAT registration if generating taxable supplies

  • Corporate tax registration

  • Customs code for import-export

  • Annual audit reports

  • License renewals

  • Labor and immigration filings

N D Savla UAE supports ongoing compliance so your UAE office runs smoothly year after year.


Our Services for Foreign Company Registration

At N D Savla UAE, we manage the process from start to finish:

  • Advisory on branch vs representative office

  • Ministry of Economy approval filing

  • Drafting resolutions and POA

  • Document attestation and legalization

  • DED license application

  • Bank guarantee coordination

  • Office Ejari processing

  • Immigration and employee visas

  • VAT and corporate tax setup

  • Bookkeeping, audit and renewals

You focus on your core business. We handle the rest.


Why Choose N D Savla UAE

  • Chartered Accountant led firm with cross-border expertise

  • Clear understanding of UAE Ministry of Economy procedures

  • Practical documentation checklists

  • Transparent timelines and fees

  • Experience in assisting Indian and global companies

  • Post-registration tax and accounting support

  • Long-term compliance partner in UAE

Your Accounting *FAQ Resources

No. It is only an extension of the foreign parent company.

 

General trading is not allowed. Service and professional activities are allowed.

 

To promote and market parent company offerings without earning revenue.

 

Yes, approval is mandatory in both cases.

 

A UAE national service agent is required, not a shareholder sponsor.