Set up a Branch in Dubai - Updated for 2022

Set up a Branch in Dubai

Updated on Wednesday 16th February 2022

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The branch is a simple business structure that a foreign company can open in Dubai. The difference between establishing a branch and a subsidiary relies in the independence of the new structure, the branch being much more dependent on the parent company. Our law firm in Dubai can inform you on the documents required for the formation of a branch and can assist you with its registration in Dubai.

Advantages of forming a branch in Dubai

One of the main advantages of establishing a branch in Dubai is the fact that this structure allows you to keep 100% foreign ownership over it. A branch does not stand as a separate entity in the UAE, but it is considered an expansion of the foreign company. This is why your foreign company will support the entire liability for the representative office opened in Dubai.
If you intend to invest quickly in Dubai, the establishment of a branch might be the most suitable decision, because it has minimum legal formation requirements. You won’t need to elaborate other articles of association, because your branch can benefit from those already existent in the parent company.
Another reason for which many foreign companies choose to open a branch is the fact that it allows for a vast selection of commercial activities. Your area will not be restricted neither to the public nor to the private sector thus providing for your company an increased flexibility.
For support you can call on our attorneys in Dubai that are going to help you with the opening of a branch in Dubai, by offering you our services of counseling and documentation.

How to open a branch in Dubai in 2022

The formation procedure of a branch in Dubai is fast and easy. One of the first moves that you must do is to choose a name and to reserve it in order to obtain the initial approval from the authorities.
The next step is to file an application to the Ministry of Economy, containing a range of documents such as the certificate of name reservation, a board of resolution, and other documents regarding the accounts of the parent company. You will have to state as well the area of activity of the foreign company which should in principle justify your intention to establish a branch in Dubai in 2022.
Another important aspect is to obtain the appropriate license from the Department of Economic Development. This document will be valid for an entire year with the possibility to renew it for as long as you need.

Why decide for a branch in Dubai in 2022

The creation of a branch office in Dubai in 2022 has not changed which is why the procedure is quite simple. The timeframe for the establishment of this business form is, however, of a few weeks until the licenses and permits are issued. It is possbile for some state institutions to have eased the licensing procedures for Dubai branches in 2022.
If you have any questions about the procedure of opening a branch in Dubai at the level of 2022, we invite you to discuss with our lawyers.
You can confidently contact our law firm in Dubai in order to ask for legal support in the establishment of a branch in Dubai