Establishing a Branch, Subsidiary, or Representative Office in Dubai
Expanding your business to Dubai is one of the smartest decisions a company can make. The UAE offers unmatched advantages — access to new markets, a favorable tax system, strategic global positioning, and a transparent, business-friendly environment.
At StratEdge Advisors, we help global businesses establish their presence in the UAE through branch offices, subsidiaries, or representative offices. Our experts guide you through every step to ensure a smooth, compliant, and cost-efficient setup.
Key Considerations When Setting Up a Branch or Subsidiary in the UAE
Setting up a company in the UAE requires understanding local corporate laws. The country allows multiple entity types across various Emirates, each with its own benefits depending on your business nature.
Today, thousands of international companies operate successfully in Dubai through branches, subsidiaries, or representative offices. Their steady growth reflects the UAE’s economic strength and investor-friendly environment.
A common misconception is that a UAE national must own 51% of a foreign company. This is no longer true for most commercial activities. Many sectors now allow 100% foreign ownership, especially in free zones and select mainland activities.
However, certain regulated sectors — such as banking, insurance, and defense — still require local ownership.
Benefits of Setting Up a Branch Office in Dubai
Choosing the right structure can offer significant strategic and financial advantages.
Here are the main benefits of establishing a branch office in Dubai:
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Tax Efficiency: Enjoy 9% corporate tax, 0% personal income tax, and no capital gains tax. There are also no restrictions on profit repatriation.
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Simplified Auditing: Branches allow smoother fund transfers and simplified auditing between the parent and UAE entity.
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No Minimum Capital: Branches do not require paid-up share capital, reducing your initial investment.
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Lower Setup Costs: With fewer formalities than standalone entities, branches offer a cost-effective way to enter the market.
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Full Ownership Retained: The branch is a direct extension of your parent company and does not require local shareholders.
A properly structured branch setup also supports international tax planning and strategic global expansion.
Understanding the Difference: Branch, Subsidiary, and Representative Office
Before deciding, it’s crucial to understand how each structure works.
Branch Office
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Acts as a legal extension of the parent company.
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Can perform the same commercial activities as the parent.
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100% owned and controlled by the parent company.
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Focused on revenue generation and operations.
Representative Office
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Cannot trade or earn revenue.
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Limited to marketing, promotions, and market research.
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Ideal for exploring the UAE market before launching full operations.
Subsidiary Company
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Legally independent from the parent company.
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Can engage in broader activities beyond the parent’s scope.
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Provides limited liability protection and operational flexibility.
Your choice depends on your growth objectives, risk appetite, and long-term expansion strategy.
Setting Up a Branch or Subsidiary in Dubai: Process, Documents, and Costs
At StratEdge Advisors, we make your UAE expansion process simple and structured.
Here’s how it typically works:
Step 1: Define the Business Activity and Structure
Identify your primary activity and decide whether a branch, subsidiary, or representative office suits your goals.
Step 2: Reserve Trade Name and Get Initial Approval
Apply to the Department of Economic Development (DED) to reserve your trade name and receive initial approval.
Step 3: Obtain Ministry of Economy Approval
Prepare and submit required documents:
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Parent company’s incorporation certificate
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Memorandum & Articles of Association
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Board resolution approving UAE setup
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Audited financial statements
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Power of attorney for the appointed General Manager
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Passport copies of the manager
All documents must be notarized, legalized, and translated into Arabic.
Step 4: Apply for the Commercial License
Once approved, apply for the commercial license from DED.
This license is valid for one year and can be renewed annually.
Step 5: Finalize Office Space and Open a Bank Account
Lease an office (mandatory for licensing) and open a corporate bank account in the UAE.
Step 6: Register with the Chamber of Commerce
Complete registration with the Dubai Chamber of Commerce to formalize your local operations.
Why Choose StratEdge Advisors
Setting up a UAE branch or subsidiary can be complex — but with StratEdge Advisors, it becomes simple.
Our experts offer end-to-end corporate setup solutions, including:
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Full documentation and compliance support
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Legal translations and authority coordination
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Fast-track licensing procedures
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Reliable local advisory services
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Transparent pricing with no hidden charges
Whether you’re expanding via a branch, launching a subsidiary, or testing markets with a representative office, StratEdge Advisors ensures your UAE entry is smooth, compliant, and strategic.
Ready to Expand into the UAE?
Take advantage of Dubai’s thriving economy, tax benefits, and global connectivity.
Contact StratEdge Advisors today to start your expansion journey and build a successful business presence in the UAE.
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