SET UP A BRANCH OF A UAE BASED COMPANY
FORMATION OF A UAE BASED COMPANY'S BRANCH OFFICE
As business grows, entrepreneurs often look to open branches of their existing company/shop in other emirates. They prefer to open branches in Dubai, Abu Dhabi or in Sharjah. These companies can accomplish this without needing to set up a new company. Onshore entities can open a branch of an existing company in any other Emirates. The ownership of these branches reflect the shareholding of the parent UAE company. In addition, they must hold one or all of the activities held in the main license. Moreover, no capital would be needed if the legal form is an LLC, public shareholding company or private shareholding company.
The trade name used in the branches cannot differ from that used in the parent company.
SET UP A BRANCH OF A FREE ZONE COMPANY
A branch of a free zone company can carry out commercial, industrial and professional business as long as the activity of the main company is authorised in mainland Dubai. 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 being practice on mainland Dubai, UAE. To open a branch of an existing company/shop, first, get the initial approval from DED. Then, it ‘s best to check with the Ministry Of Economy before proceeding with the release of the license. Do note, that for branch licenses (foreign or local) the ministry of economy is the main governing body, while the DED is your licensing department.