Set up a Foreign Company Branch Office in Dubai UAE

8 Simple Steps to Set up a Foreign Company Branch Office in Dubai UAE

If you stumbled onto our article searching for “how do I setup a foreign company branch office in Dubai” you have come to the right place.

At Horizon business setup consultants in dubai, UAE we have been serving companies from across the globe ‘set up shop’ not only in Dubai but across UAE. Whether you choose the mainland or the free zone, we have first-hand delivered the best way forward plan-of-action for your parent companies to leverage maximum advantage that the UAE government offers their branch office in Dubai.

In this article, we condense our expertise in a simple way to share with you a simplified plan-of-action when it comes to setting up your company’s branch office in Dubai. It will also give you greater clarity to make an informed decision understanding what’s at stake.

But before we dive headfirst into exploring the subject, it is important to understand why your business should definitely take advantage of setting up an office in Dubai.

Why Should I Setup my Foreign Company Branch Office in Dubai?

Dubai is a strategic location for businesses with a diverse and growing economy. It is a global hub connecting the best of the East with the best of the West in terms of a talented workforce, a culturally diverse population, and a high quality of life.

In addition, the government’s pro-business policies with relatively lower taxes and a strong infrastructure act as the cherry-on-top.

It has rightly emerged as an attractive option for companies looking to establish a presence in the Middle East and tap into its growing markets across the entire UAE and then towards the larger MENA market.

How to Set up a Foreign Company Branch Office in Dubai?

To set up a foreign company branch office in Dubai, essentially new business set up in Dubai, you need to follow these steps:

Mainland or Free Zone office set up in dubai uae

  1. Choose the right legal structure: Decide whether to set up a branch office or a representative office, and ensure it aligns with your business objectives and local regulations.
  2. Mainland or Free Zone: Choose a suitable location for your office, whether it be in a free zone or on the mainland.
  3. Obtain necessary approvals
    Obtain the necessary approvals from the relevant government authorities, such as the Department of Economic Development (DED) and the Dubai Chamber of Commerce.
  4. Register your company
    Register your company with the DED and obtain the necessary licenses and permits.
  5. Obtain visas and work permits
    Obtain visas and work permits for employees and executives.
  6. Rent office space
    Rent suitable office space, either in a free zone or on the mainland.
  7. Establish a local bank account: Establish a local bank account to manage your finances in Dubai.
  8. Set up operations: Once you have completed the above steps, you can set up operations in Dubai.

These 8 simple steps to set up a foreign company branch office in Dubai sound easy as ever; however, there is much complexity when dealing at each step, which requires intervention of experienced business consultants like those at Horizon.

For instance, you will be confronted with a series of strategic decisions when it comes to selecting the right legal structure. Each step has multiple activities and decisions you have to take.

6 Other Factors Impacting Your Future Business Costs and Operations

Select the right legal structure when setting up a foreign company branch office in Dubai is not only crucial but complex, and in fact depends on multiple factors.

These 8 simple steps to set up a foreign company branch office in Dubai sound easy as ever; however, there is much complexity when dealing at each step, which requires intervention of experienced business consultants like those at Horizon.

For instance, you will be confronted with a series of strategic decisions when it comes to selecting the right legal structure. Each step has multiple activities and decisions you have to take.

6 Other Factors Impacting Your Future Business Costs and Operations

Select the right legal structure when setting up a foreign company branch office in Dubai is not only crucial but complex, and in fact depends on multiple factors.

Your Industry, Nature of Business and Lines of Business

It is important to take into consideration the industry, nature of business and lines of business your company aims to venture in. This makes it vital to have a clear sense of your larger vision and business objectives.

Different legal structures would be suited to different industries and LOBs.

Local Regulations

At time, certain business activities may not be permitted in the context of being carried out by a branch office operating in Dubai, and so you must ensure the legal structure you opt for closely aligns with local regulations

Tax Implications

The reason you decide to set up shop in Dubai as a branch office in the first place is to enjoy a certain degree of freedom from heavy corporate taxation. That’s why it makes sense to weigh in multiple options, and common scenarios for your business and industry.

In addition, it is essential to have clarity on the probable tax implications of different legal structures so you can select a structure that minimizes your tax liability.

Liability

Consider the liability of each legal structure, as a branch office may have unlimited liability for the actions of the parent company.

Compliance

Ensure that you are able to comply with all legal requirements and regulations, such as the requirement to appoint a local sponsor for a branch office.

Cost

Consider the costs involved in setting up and maintaining each legal structure, such as license fees, visa costs, and office rental costs. It is also important to arrive at a realistic estimate of multiple miscellaneous recurring fees to get your CAPEX streamlined.

Why You Should Choose Horizon Business Consultants

What we just shared is just the top of the ice-berg. Even though the steps sound pretty straight-forward, there is no one-size-fits-all formula to setting up your foreign company branch office in Dubai.

Even though, you are willing to spend the time to do the leg work yourself, you need someone who can hold your hand and walk with you every step of the way, someone with integrity and with the same regard for your vision as you. And, that’s us at Horizon, the best business setup consultants in Dubai, UAE.

It’s important to seek professional advice and assistance to ensure that you comply with all legal requirements and regulations when setting up a foreign company branch office in Dubai.

You have taken the first step and decided to set up a branch office in Dubai. Now, take the plunge and let Horizon take care of your hassles all the way.

Get in touch with us a for a free consultation today.

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