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.
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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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.
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.
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.
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.
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.
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
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.
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.
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.
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
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.