22 Sep How to Open a Branch of a Foreign Company in Dubai
Dubai has earned its reputation as the business capital of the Middle East — a global hub that connects Asia, Europe, and Africa through unmatched infrastructure, favorable tax laws, and an investor-friendly environment. Many international companies that want to expand into the GCC choose to open a branch of their foreign company in Dubai rather than incorporating a new entity.
A branch office allows your existing company to extend its global presence under the same legal identity. It’s a smart and efficient way to establish a footprint in the UAE while retaining full control of the parent company abroad. In this guide, we explain the step-by-step process of opening a branch of a foreign company in Dubai, the legal framework, benefits, and compliance requirements for 2025.
1. Understanding a Branch Office in Dubai
A branch office is a legal extension of the parent company, not a separate entity. It operates under the same trade name and engages in activities that are identical to those of the head office. Unlike a subsidiary or limited liability company (LLC), a branch cannot engage in new activities beyond what is permitted in the parent company’s license.
The Dubai Department of Economy and Tourism (DET), previously the Department of Economic Development (DED), governs the licensing of branch offices in Mainland Dubai. Branches can operate across the UAE, sign contracts, invoice clients, and earn revenue in the name of the foreign parent company.
2. Benefits of Opening a Branch Office in Dubai
Opening a branch offers multiple strategic advantages for foreign investors. It allows full ownership by the parent company, which means 100% profit repatriation and complete control of management and operations. The branch enjoys the same legal identity and brand reputation as its parent, making it easier to build credibility with customers and partners.
A branch office also benefits from Dubai’s world-class infrastructure, access to skilled professionals, advanced digital government systems, and zero personal income tax. It provides the opportunity to serve clients within the UAE directly while maintaining a unified global structure for accounting and reporting.
3. Legal Framework and Regulatory Authorities
The licensing and regulation of foreign company branches fall under Federal Law No. 32 of 2021 on Commercial Companies, which replaced the older 2015 law. The law allows international companies to open branches in the UAE, provided they obtain a commercial license from the DET and appoint a local service agent (LSA).
The local service agent must be a UAE national or a company owned by UAE nationals. The agent does not hold any ownership in the branch but assists with government procedures, document submissions, and renewals. This relationship is formalized through a notarized Local Service Agent Agreement.
4. Step-by-Step Process to Open a Foreign Branch in Dubai
Step 1: Obtain Initial Approval from DET
The process begins by applying to the Department of Economy and Tourism for initial approval. The application includes details about the parent company, its activities, and the nature of operations planned in Dubai. The parent company must submit a board resolution authorizing the establishment of a branch in the UAE.
Step 2: Approval from the Ministry of Economy (MOE)
Once DET grants preliminary approval, the application must be submitted to the Ministry of Economy for federal authorization. The MOE evaluates the company’s global reputation, business activities, and financial health before issuing approval.
Step 3: Appoint a Local Service Agent (LSA)
The parent company must appoint a UAE national or 100% Emirati-owned company as a local service agent. The LSA will represent the branch in administrative and legal matters but has no role in management or profits.
Step 4: Prepare and Legalize Documents
All corporate documents of the parent company — such as the Certificate of Incorporation, Memorandum and Articles of Association, Board Resolution, and Audited Financial Statements — must be attested by:
The Notary Public and Chamber of Commerce in the parent company’s country.
The UAE Embassy in that country.
The Ministry of Foreign Affairs (MOFA) in the UAE.
Step 5: Lease Office Space and Register Ejari
A physical office address is mandatory for licensing. Once the tenancy contract is signed, it must be registered under the Ejari system, which verifies your office through the Dubai Land Department.
Step 6: Trade Name and Licensing
The branch will use the same trade name as its parent company, but DET must still approve it. Once all approvals and documentation are complete, the trade license will be issued, enabling the branch to legally conduct operations in the UAE.
Step 7: Registration with Other Authorities
After receiving the trade license, the branch must be registered with:
- Dubai Chamber of Commerce and Industry (DCCI)
- Federal Tax Authority (for VAT, if applicable)
- General Directorate of Residency and Foreigners Affairs (for visa quotas)
5. Documents Required for Branch Registration
While requirements can vary depending on the business activity, the standard documentation includes:
- Application form from the DET
- Parent company’s Certificate of Incorporation
- Memorandum and Articles of Association
- Board Resolution approving the branch formation
- Power of Attorney for the branch manager
- Passport copies of shareholders and manager
- Notarized Local Service Agent Agreement
- Office lease contract and Ejari certificate
- Audited financial statements of the parent company
All foreign documents must be legalized as per UAE regulations before submission.
6. Cost of Opening a Branch in Dubai in 2025
The total cost varies depending on activity type, office location, and additional approvals required. On average, foreign branch registration costs between AED 25,000 and AED 40,000, including government fees, notarization, and translation costs.
Renewal fees are payable annually, and companies must maintain valid tenancy contracts, LSA agreements, and up-to-date corporate records to ensure compliance.
7. Banking and Taxation
Once licensed, the branch can open a corporate bank account in Dubai under the parent company’s name. The branch must maintain separate financial accounts in the UAE and file periodic VAT returns if applicable.
Although the UAE has introduced a 9% corporate tax on profits above AED 375,000, branch offices are subject to the same tax structure as local companies. Profits can be fully repatriated to the parent company without restrictions.
8. Advantages of Establishing a Branch Over a Subsidiary
Opening a branch office provides greater control and simplified management compared to forming a new legal entity. The parent company retains 100% ownership and liability while operating under its established name and global reputation. There is no share capital requirement, and the branch can mirror the parent’s operations and branding across the region.
This structure is particularly advantageous for professional service providers, consultancies, financial institutions, and technology companies looking to expand into Dubai’s competitive market while minimizing legal complexities.
9. How GCC Solutions Can Help
Setting up a foreign branch involves multiple legal stages, documentation, and government approvals. GCC Solutionsprovides comprehensive assistance to foreign investors by managing the entire process — from obtaining approvals from the Ministry of Economy and DET to drafting legal documents, coordinating attestation, and registering the company with all relevant authorities.
Our team ensures full compliance with 2025 regulations and handles every administrative requirement efficiently, saving you time and cost. Whether you’re a European consultancy, Asian manufacturer, or multinational corporation, we’ll help you establish your Dubai branch seamlessly and legally.
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