Dubai has one of the fastest-growing economies. For this reason, it may be beneficial for your business to have a branch office in Dubai. A branch office is one where the parent company sets up another business in a different country, in this case Dubai, such that the branch is fully owned by and can conduct the same business activities as the parent company. In this article, we will be focusing on the process of Dubai company registration and the cost of setting up branch office in Dubai.
There are several forms of onshore companies available to foreign investors, of which the branch office is a common choice. Under this form of business, companies can rent office space, hire workers, sign contracts, and more. They are allowed to do business with not only international clients, but also UAE ones. On the one hand, it is much safer to conduct business in Dubai using a branch office as it allows the foreign company to have complete control over the business. On the other hand, you will require a UAE national to act as a national service agent whose role is to register business in Dubai and act on the company’s behalf.
Having gained a better understanding of what branch offices are, we can now examine the process through which a new business setup in Dubai can be completed and the cost incurred at each stage.
Steps to complete Dubai company registration:
Step 1: Ensure all requirements are met and complete the preliminary steps
Step 2: Submit an application to the Ministry of Economy
Step 3: Receive an initial approval from the Ministry of Economy
Step 4: Submit an application for your license
Step 5: Complete registration with the Commercial Register of the Economic Department
Step 6: Register your business
[ps2id id=’step1′ target=”/]Step 1: Ensure all requirements are met and complete the preliminary steps
- You must have a national service agent. For this, you need to have a Local Agent Service Agreement with an individual who is a UAE resident.
- You must have all the necessary documentation notarized.
- You must also check the availability of your company name and reserve it.
[ps2id id=’step2′ target=”/]Step 2: Submit an application to the Ministry of Economy
- The application will be forwarded to the Department of Economic Development to receive the approval of the local government.
- You will be required to make a fee payment of approximately AED 5,000.
[ps2id id=’step3′ target=”/]Step 3: Receive an initial approval from the Ministry of Economy
- The application will first need to be approved by the Federal Foreign Companies Committee, after which the Ministry will give its initial approval.
- You will then need to make another fee payment to complete the registration process with the Ministry (approximately AED 10,000).
[ps2id id=’step4′ target=”/]Step 4: Submit an application for your license
- Depending on the kind of business conducted by your company, you are required to have a license. This license describes the business activities that you are permitted to perform in Dubai.
- You must make an additional payment of approximately AED 10,000 at this stage.
[ps2id id=’step5′ target=”/]Step 5: Complete registration with the Commercial Register of the Economic Department
- You must then make a deposit of AED 50,000 to the Ministry of Economy as a bank guarantee.
- After this deposit, the bank issues the Bank Guarantee Letter which is required to receive approval from the Ministry of Economy.
[ps2id id=’step6′ target=”/]Step 6: Register your business
- You are required to enter your business in the Foreign Companies Register of the Ministry of Economy and also in the Dubai Chamber of Commerce and Industry.
Thus, we find that the process of new business set up in Dubai is slightly complicated and involves multiple fee payments at different steps. In sum, the total fee to set up a branch office in Dubai amounts to approximately AED 25,000. However, it may vary depending on your specific business activities and the government policies at the time of incorporation.
While the incorporation process is being carried out, you are also required to open your Dubai offshore bank account.
Steps to open Dubai offshore bank account:
Step 1: Decide on the bank
- You need to decide which bank you wish to apply to.
Step 2: Complete the KYC process
- In order to complete this step, your Proof of Identity, Residential Proof, and Credit History will be examined by the bank. You must also have the required document, including the Registration Certificate, business description, registered address and more.
Step 3: Make the initial deposit
- You are also required to deposit a minimum balance required by your bank to activate your account.
Need help managing cost of setting up branch office in Dubai?
We at Tetra Consultants recognize that the process of setting up a branch office in Dubai may be complicated for you. Hence, we offer you our full services, where we will prepare the required documents for you and help you through the tiresome process such that you do not need to travel to Dubai even once. After we complete the registration process on your behalf, which should take approximately three weeks, we will also support you in setting up your Dubai offshore bank account.
Contact us to find out more about the process and cost of setting up branch office in Dubai. Our team will revert to you within the next 24 hours.