Branch Office of a Foreign Company in UAE: A 2025 Guide
For international companies looking to expand their footprint into the lucrative Middle East market, the UAE offers a strategic and stable base. One of the most effective ways for a foreign company to establish a presence without creating a separate legal entity is by opening a **branch office**. A branch office is considered an extension of the parent company and is permitted to conduct business activities similar to those of its parent. [1] Unlike a subsidiary, a branch office is not a separate legal entity. It is 100% owned by the parent company and operates under its name and brand. This structure is ideal for established companies that want to promote their products and services, enter into contracts, and conduct business operations directly in the UAE market. This guide provides a detailed overview of the process of opening a branch office of a foreign company in the UAE for 2025. We cover the legal requirements, the setup process, and the key considerations. T4me offers specialized services to help foreign companies navigate this process and establish their presence in the UAE smoothly and efficiently. Key Features of a Branch Office The Role of a Local Service Agent (LSA) The LSA does not hold any shares in the branch office and has no rights to participate in the management or profits of the business. The role of the LSA is primarily to act as a liaison with government departments and to ensure that the branch office complies with all local regulations. The relationship between the foreign company and the LSA is governed by a formal service agent agreement. How to Set Up a Branch Office in the UAE: Step-by-Step 4. Ministry of Economy Approval: Submit the attested documents and the LSA agreement to the UAE Ministry of Economy for approval. 5. DED License Issuance: Once the Ministry of Economy approval is obtained, submit all documents to the DED to receive the final commercial license. 6. Office Lease and Registration: Secure a physical office space and register it with the relevant authorities (e.g., Ejari in Dubai). How T4me (t4me.com) Can Help You Open Your Branch Office The process of opening a branch office involves significant legal and administrative work, particularly the attestation of parent company documents. T4me provides an end-to-end service to manage this entire process for you. Our services include: Frequently Asked Questions (FAQ) 1. Can a branch office conduct any business activity? A branch office can only conduct the activities that are listed on its commercial license, which must be similar to the activities of the parent company. 2. Is a branch office subject to UAE Corporate Tax? Yes, a branch office is considered a permanent establishment of the foreign parent company in the UAE and is therefore subject to the UAE Corporate Tax on its profits. 3. What is the difference between a branch office and a representative office? A representative office is only allowed to promote the products and services of its parent company. It cannot earn revenues or enter into contracts in the UAE. A branch office can conduct full-fledged business operations. 4. Does the LSA have any liability for the branch office? No, the LSA is not financially liable for the business of the branch office. The parent company is fully liable for the activities of its branch. 5. How long does it take to open a branch office? The process can take several weeks to a few months, largely depending on the time it takes to get the parent company documents attested. Conclusion: Your Direct Gateway to the UAE Market Opening a branch office is an excellent way for established foreign companies to enter the UAE market directly, maintain full ownership and control, and build a strong operational presence. It allows you to leverage your existing brand and business model while tapping into the vast opportunities of the region. With the right partner to guide you through the setup process, you can establish your branch office efficiently and in full compliance with UAE law, setting the stage for successful business growth. Contact T4me (t4me.com) today for a detailed consultation on opening a branch office of your company in the UAE. Let our expertise pave your way to a successful market entry. References [1] U.AE. “Branch of a foreign company.” u.ae, 2023, https://u.ae/en/information-and-services/business/business-forms-in-the-uae/branch-of-a-foreign-company.
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