How Can a Foreign Company Open a Branch in Dubai, UAE in 2025?

Expanding into the UAE is a way for any foreign company to tap into one of the world’s most dynamic markets. The UAE is a gateway to Africa, Asia and the Middle East with a robust economy and a tax friendly environment. How can a foreign company open a branch in Dubai, UAE? Even though the process may seem daunting, this is actually a logical and sequential process when directed by experts.

Opening a branch in Dubai, UAE is the best option if you are a company that wants to expand its operations without losing control. The branch office is not a separate legal entity but a branch of the parent company. Doing this will help keep the brand united, and the branch will operate business activities that are the same as the parent company.

Step 1: Selecting the Right Jurisdiction

The UAE provides two primary options for branch offices: mainland and free zones. The foreign ownership of free zones is 100% free, there is tax exemption and special environment for some industry. However, mainland branches have free access to the UAE local market.

If you are thinking of how a foreign company can start their branch in UAE, then these options are to be evaluated. AB Capital Services, assists businesses with determining the jurisdiction that best meets their needs and assesses the goals they’d like to accomplish.

Step 2: Meeting Licensing and Documentation Requirements

Setting up a branch in the UAE is an essential step and licensing is a must. A commercial, professional or industrial license will be required depending on the business activity. The licensing process involves submitting specific documents, such as:

• A parent company board resolution notarized and attested
• Memorandum of Association (MOA) of the parent company
• Parent company incorporation documents
• Passport copies for authorized representatives

AB Capital Services takes care of every detail meticulously so that you don’t have to spend time and effort. This key step in the process of how can a foreign company start their branch in UAE is simplified by them.

Step 3: Local Service Agent (LSA) Appointment

Mainland branches must appoint a Local Service Agent (LSA). The LSA is not the owner or operator of the branch, but they are a liaison with UAE authorities. AB Capital Services makes this step as simple as possible by helping you find a trustworthy and compliant LSA.

Step 4: Setting Up Office Space and Banking

All other branches in the UAE have to run under an official address, which means a physical office or flexible co-working space. It is a necessary requirement for getting a license. AB Capital Services helps businesses find office space that meets their operational needs and budget.

Owing, another key aspect of when a foreign company can set up their business branch in the UAE is to rotate a corporate bank account. This makes the task to cross the first hurdle, and that is the Know Your Customer (KYC) protocol enforced by UAE banks. AB Capital Services works with the leading banks to operate the protocol and following due process of all regulatory requirements.

Step 5: Ensuring Tax Compliance and Exploring Opportunities

The business friendly tax environment in the UAE requires that certain companies subject themselves to regulations, such as a Value Added Tax (VAT), depending on business activity. Expert tax advice by AB Capital Services assure smooth operation and compliance.

Setting up a branch in the UAE provides access to the vibrant and diverse economy of the country, partnering with international and local stakeholders and unique access to world-class infrastructure.

Partnering with AB Capital Services

AB Capital Services is a reliable partner for businesses that are looking to know how to start a branch of a foreign company in UAE. With their extensive expertise covering everything from choosing the right jurisdiction to managing licensing, documentation, and compliance, you can expand your business while they steer.

Final Thoughts

Therefore, how can a foreign company begin their branch in UAE? There is careful planning, understanding of the regulations and consultants such as AB Capital Services to help you through this process. Starting a branch in the UAE is a smooth process with their end to end support. Today, take the first step and unlock opportunities in one of the world’s most dynamic markets.

For more information, visit www.abcapital.ae & we are the leading business setup consultants in Dubai, UAE.

FAQs: How Can a Foreign Company Start Their Branch in UAE?

1. What are the advantages of opening a branch in the UAE? Opening a branch in the UAE allows foreign companies to expand their operations into a thriving market with access to global trade routes, 100% foreign ownership in free zones, and a favorable tax environment. It also provides brand continuity and a streamlined business structure.
2. What is the difference between a mainland branch and a free zone branch? A mainland branch allows access to the local UAE market without geographic restrictions. A free zone branch offers benefits such as 100% foreign ownership, tax exemptions, and specialized environments for specific industries. The choice depends on your business goals and operations.
3. What documents are required to start a branch in the UAE? The required documents typically include:
4. Is a local service agent (LSA) required for all branch setups? An LSA is required for mainland branches, but not for free zone branches. The LSA acts as a liaison with UAE authorities, but has no ownership or operational involvement in the business.
5. Can AB Capital Services assist with the branch setup process? Yes, AB Capital Services FZE provides end-to-end support for foreign companies, including jurisdiction selection, documentation preparation, securing an LSA, and ensuring compliance with UAE regulations.
6. How long does it take to establish a branch in the UAE? The timeline can vary depending on the jurisdiction and complexity of the application, but the process typically takes a few weeks to a few months. AB Capital Services ensures efficient handling to expedite the setup.
7. What types of business activities can a branch office perform? A branch office can carry out activities identical to its parent company, provided they align with UAE regulations. Certain activities may require additional approvals or licenses.
8. Is it mandatory to have a physical office for a branch in the UAE? Yes, all branches must have an official address in the UAE, whether it’s a physical office or a co-working space. This is a requirement for obtaining a license.
9. What are the tax implications for a branch in the UAE? The UAE offers a favorable tax environment, but branches may be subject to Value Added Tax (VAT) depending on their activities. Corporate tax may apply in certain cases. AB Capital Services provides expert advice to ensure compliance with tax regulations.
10. How can I open a corporate bank account for my branch in the UAE? Opening a corporate bank account involves meeting the bank’s Know Your Customer (KYC) requirements and providing the necessary documents. AB Capital Services collaborates with UAE banks to simplify the account setup process for foreign companies and opens a business bank account in 3 business days.