Establishing a Branch, Subsidiary, or
Representative Office in Dubai: A
Complete Guide by StratEdge Advisors
Expanding your business footprint into the UAE is one of the most strategic moves a
company can make today. The UAE offers immense advantages — including access to new
markets, a favorable tax environment, strategic global positioning, business-friendly
regulations, low administrative overheads, and a transparent financial system.
At StratEdge Advisors, we assist businesses worldwide in establishing their presence in the
UAE through branch offices, subsidiaries, or representative offices — guiding you at every
step to ensure a smooth, compliant, and efficient setup.
Key Considerations When Setting Up a
Branch or Subsidiary in the UAE
While the UAE is a highly attractive jurisdiction, setting up a company here involves
understanding some key corporate law specifics. The UAE allows the registration of different
types of entities across various Emirates, each offering distinct advantages depending on
the nature of your business.
Today, Dubai and the broader UAE host thousands of international companies, many of
which operate through branches, subsidiaries, or representative offices. Their continued
growth year-on-year reflects the region’s economic vitality.
A common misconception is that a local UAE partner must own 51% of a foreign company’s
shares. This is no longer applicable to most commercial activities — many sectors now
allow 100% foreign ownership, particularly in free zones and for several mainland business
activities. Only a few regulated industries (like insurance, banking, and national security
sectors) still have local ownership requirements.
Strategic Purposes of Setting Up a Local
Office in the UAE
A local branch, subsidiary, or representative office can serve multiple objectives depending
on your business goals:
1. Representation
Dubai acts as the commercial gateway to the Middle East, Africa, and South Asia. Setting up
a branch or subsidiary strengthens your brand’s visibility and credibility in these markets.
2. Administration
The UAE’s world-class infrastructure, abundant office spaces, and access to skilled
professionals make it an ideal location for establishing administrative operations.
3. Marketing
Home to countless international exhibitions, trade shows, and conferences, the UAE offers
unmatched opportunities to promote products, services, and brand awareness.
4. Holding Activities
With robust banking systems and investment-friendly regulations, the UAE is an excellent
location to establish holding companies and manage regional investments.
5. Operational Support
Dubai’s position as a commercial hub facilitates face-to-face meetings, client management,
and contract negotiations across the GCC and beyond.
6. Logistics Coordination
Thanks to major ports and airports, UAE offices are ideal for managing logistics, distribution,
and supply chain operations across the Middle East, Africa, and Asia.
7. Functional Expansion
The UAE also supports manufacturing, warehousing, and industrial activities, especially
within its dedicated free zones.
8. Financial Services
Access to a thriving financial ecosystem — including global banks and fintech companies —
makes the UAE an excellent hub for financial operations.
Benefits of Setting Up a Branch Office in
Dubai
Choosing the right business structure can deliver multiple commercial and financial
advantages. Here are the key benefits of setting up a branch office in Dubai:
● Tax Efficiency: The UAE offers 9% corporate tax, 0% personal income tax, no
capital gains tax, and no restrictions on capital repatriation.
● Simplified Auditing: Operating through a branch simplifies fund flows between the
parent company and local operations, easing auditing and compliance requirements.
● No Minimum Share Capital Requirement: Unlike standalone companies, branch
offices are not required to inject or maintain share capital, reducing setup and
operational costs.
● Cost-Effective Market Entry: With fewer regulatory and financial requirements,
branches offer a budget-friendly way to establish a physical presence and build
market share.
● Unlimited Shareholder Flexibility: Branch offices are extensions of the parent
company and are not restricted by local shareholder limits that apply to new entities.
With proper setup and compliance, a branch structure also offers strategic tax planning and
international expansion advantages.
Understanding the Difference: Branch,
Representative Office, and Subsidiary
Before setting up, it’s important to choose the right structure based on your goals:
Branch Office
● Acts as an extension of the parent company.
● Can carry out commercial activities identical to the parent.
● Operates under the full ownership and control of the parent company.
● Focuses on operational delivery and direct revenue generation.
Representative Office
● Cannot engage in commercial trading.
● Limited to marketing, promotion, and market research.
● Ideal for building a market presence before full entry.
Subsidiary Company
● Legally distinct entity owned by the parent company.
● Can engage in broader commercial activities beyond the parent company’s primary
business.
● Offers independent liability and flexibility to operate across diverse sectors.
Choosing between a branch, representative office, or subsidiary depends on your expansion
objectives, risk appetite, and commercial strategy.
Setting Up a Branch or Subsidiary in
Dubai: Process, Documentation, and
Costs
At StratEdge Advisors, we simplify the setup process for you. Here’s an overview of what the
setup typically involves:
Step 1: Choose the Business Activity and Structure
Define your activities and determine the best structure — branch, subsidiary, or
representative office.
Step 2: Reserve a Trade Name and Obtain Initial Approvals
Apply to the Department of Economic Development (DED) for trade name reservation and
initial activity approval.
Step 3: Secure Approvals from the Ministry of Economy
Submit your detailed application, supported by:
● Parent company’s certificate of incorporation.
● Memorandum and Articles of Association.
● Board resolution authorizing branch setup.
● Audited financial statements.
● Power of attorney for the appointed General Manager.
● Manager’s passport copies.
Note: All corporate documents must be duly legalized and translated into Arabic.
Step 4: Apply for the Commercial License
Upon receiving approvals, proceed with the issuance of the branch commercial license from
DED. The license is usually valid for one year and renewable annually.
Step 5: Finalize Office Space and Banking
Secure a physical office lease (mandatory for licensing) and open a corporate bank account
in the UAE.
Step 6: Membership with Chamber of Commerce
Register your branch or subsidiary with the local Chamber of Commerce to formalize your
company’s local presence.
Why Choose StratEdge Advisors?
Setting up a branch or subsidiary in Dubai can seem complex, but with StratEdge Advisors
by your side, it becomes a seamless and efficient journey.
We offer:
● Comprehensive advisory and documentation support.
● Assistance with legal translations and approvals.
● Fast-track licensing and setup processes.
● Local expertise and corporate advisory services.
● Transparent and competitive pricing without hidden costs.
Whether you want to expand through a branch, launch a subsidiary, or set up a
representative office, we have the experience and resources to make it happen — smoothly,
compliantly, and strategically.
Ready to Expand into the UAE?
Take advantage of the UAE’s strategic location, tax benefits, and business-friendly
environment.
Contact StratEdge Advisors today and let’s build your success story in the UAE.