OPENING A BRANCH OF A LOCAL COMPANY IN DUBAI AND THE REST OF UAE
What is a Branch of a Local Company?
A branch office setup is a separate office or branch of an existing company. The local company already has a license in the UAE. Hence, this is an expansion of the local business. Likewise, the process of acquiring or warehouse space is almost identical to acquiring an initial business location. However, it is important for a business to verify the proposed business activities authorized within the regulations as there are zoning rules.
A call to the Department of Economic Development can establish which activities permitted on the parent license can be undertaken at the branch. Based on the location or emirate you wish to have the branch office set up in. The ownership of these branches reflects the shareholding of the parent UAE company. The trade name used in the branches cannot differ from that used in the parent company. In addition, they must hold one or all the activities held in the main license. There is no need for capital if the legal form is an LLC, public shareholding company or private shareholding company.
A Branch of a local company in Dubai will have its own license. Therefore, can also have its own labour and immigration cards, permitting it to hire staff specific to its license. Rather than being dependent on the immigration and labour cards of the parent company.
OPENING A BRANCH OF A FREE ZONE COMPANY IN DUBAI
A branch of a free zone company can carry out commercial, industrial and professional business as long as the activity of the parent company has authorisation in mainland UAE. The commercial and industrial license needs special approval for a branch legal form. This is subject to the approval of the activity or activities held and permitted in mainland Dubai, UAE. To open a branch of a local company in Dubai, you need to check with the Ministry of Economy before proceeding with the initial approval and the release of the license from the Department of Economic Development (DED). Do note, that for branch office setup (foreign or local) the ministry of economy is the main governing body. While the Department of Economic Development is your licensing department.
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