Branch of Foreign Company License In Dubai
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Dubai is known for its favorable business environment, making it an ideal location for international companies looking to expand their operations. One way to establish a business presence in Dubai is by setting up a branch of a foreign company. This article aims to provide a comprehensive guide on how to obtain a branch of foreign company license in Dubai.
What is a Branch of Foreign Company License in Dubai?
A branch of foreign company license in Dubai allows international companies to establish a branch office in the city. The branch operates as an extension of the parent company, with the same name and legal structure. However, the branch office is required to operate under the jurisdiction of the Dubai Economic Department (DED).
Benefits of Obtaining a Branch of Foreign Company License in Dubai:
Access to a favorable business environment: Dubai offers a conducive environment for businesses, with tax incentives, free zones, and other business-friendly policies.
Easy access to the Middle Eastern market: Dubai serves as a gateway to the Middle Eastern market, providing access to over 1.5 billion consumers.
No minimum capital requirement: Unlike other jurisdictions, Dubai does not have a minimum capital requirement for foreign companies setting up a branch office.
Limited liability: The branch office operates as a separate legal entity, providing limited liability protection to the parent company.
Requirements for Obtaining a Branch of Foreign Company License in Dubai:
Parent company documents: The parent company is required to provide documents such as a certificate of incorporation, memorandum of association, and articles of association.
Proof of financial standing: The parent company is required to provide evidence of its financial standing, including audited financial statements.
Business plan: The parent company is required to submit a detailed business plan outlining the proposed activities of the branch office.
Legalized documents: All documents submitted must be legalized by the UAE embassy in the home country of the parent company.
Steps to Obtain a Branch of Foreign Company License in Dubai:
Choose a business activity: The parent company must decide on the proposed activities of the branch office, which will determine the type of license required.
Reserve a trade name: The parent company must reserve a trade name for the branch office with the DED.
Apply for initial approval: The parent company must apply for initial approval from the DED, which involves submitting the required documents and paying the relevant fees.
Obtain the lease agreement: The parent company must obtain a lease agreement for the office space in Dubai.
Apply for final approval: The parent company must apply for final approval from the DED, which involves submitting the lease agreement and paying the relevant fees.
Obtain the license: Once the final approval is granted, the parent company can obtain the branch of foreign company license in Dubai.
FAQs
How long does it take to obtain a branch of foreign company license in Dubai?
Can a branch office hire employees in Dubai?
Is there a minimum capital requirement for setting up a branch of foreign company in Dubai?
Can a branch office conduct business outside Dubai?
Conclusion
Establishing a branch of foreign company in Dubai can be a beneficial and rewarding experience for international companies looking to expand their operations in the Middle East. However, the process of obtaining a branch of foreign company license in Dubai can be complex and time-consuming, requiring careful planning and preparation. By following the guidelines outlined in this article, companies can navigate the process of obtaining a branch of foreign company license in Dubai with ease and confidence.
