Branching International Company in UAE
Branching International Company in UAE must be registered with the relevant UAE government agency.
Foreign companies can open branches/subsidiaries in the UAE and coordinate operations with their parent companies in their home countries.
What is meant by Branching Your International Company?
Branching Your international Company is an extension of an existing company, not a legal entity independent of the parent company. In addition, the branch is authorized to carry out the same business activities as its parent company in the United Arab Emirates.
How do you open a branch in the United Arab Emirates?
The operation of the branch office must be carried out in the UAE and is 100% responsible, and has liability for its behavior, business activities, and management.
Branching Your International Company can be established in two jurisdictions in the UAE: Free Zone and Mainland.
Branching Your Foreign Company in the United Arab Emirates-steps to follow.
The process of setting up a branch/subsidiary company is simple and easy. Our team supports you in setting up a Branching Your Foreign Company by preparing the necessary documents, coordinating with the authorities for approval, organizing the opening of bank accounts, and so on.
Steps to follow for Branching Your International Company
1. Choose an appropriate business jurisdiction
Foreign companies must choose a suitable business jurisdiction. -Where should the branch be opened: mainland, free zone, offshore.
2. Find local service agent
The local service agent is appointed for a year and charges an annual fee. The contract is updated every year, and if there is a disagreement, you can choose to change the agent. Local sponsors and managers/directors are those who have the right to operate branch businesses.
An experienced business consultant like Petro New Link will help you approve paperwork, visa processing, assist in opening a bank account, etc.
3. Keep company name
The name of the branch company should be the same as the parent company’s name in the country of residence.
To obtain name confirmation, mainland companies must apply to the Department of Economic Development (DED). If the investor chooses these jurisdictions for allocation, the request must be sent to the appropriate free zone/offshore agency.
4. Certification of documents by UAE national authorities
Company documents must be certified by the UAE Embassy in the country of origin and verified by the Ministry of Foreign Affairs In UAE.
The following documents are required & must be certified by the UAE authority of the country of origin and verified in the UAE.
- Memorandum of Association (MOA)/Certificate of Incorporation, Articles of Association (AOA);
- Board of Directors’ decision on the set-up of branch/subsidiary companies;
- Parent company’s credit certificate;
- Authorization (power of attorney) by the chairman of the board of directors who can open/manage/manage bank accounts on behalf of the parent company.
5. Obtain a license from the appropriate government agency
Submit the notarized documents together with the supporting documents to the corresponding government agency to obtain the permit of Branching Your Foreign Company.
The fee shall be paid to the authorities together with the submission of the documents. The license of Branching Your Foreign Company is issued to investors.
6. Compliance with administrative requirements
Investors can now apply for UAE visas, open company bank accounts, appoint directors/general managers, hire employees, issue immigration cards, expand employment contracts, expand office space, and conduct business in the UAE.
To learn more about Branching Your Foreign Company in the United Arab Emirates, please immediately contact our Petro New Link’s experienced management consultant.
Benefits of Branching Your Interational Company in UAE
- 100% owned by foreign investors.
- Tax saving because there is no corporate tax/income tax in the UAE.
- UAE resident visa and company/private bank account. Independent auditing, accounting, and decentralization of the company’s global branches to better manage and effectively enter new market areas.
- There are no authorized capital requirements for branches in the United Arab Emirates. This enables investors to develop their business at the lowest upfront cost.