Open Your Company Branch in UAE
Investors planning a low-cost business setup in Dubai, Abu Dhabi, or other parts of the UAE face several options. Free zone and standard Mainland setups are popular choices but setting up a branch office can be a great alternative. A branch office is just an extension of an existing business that doesn’t have a separate legal entity from its parent company. It’s a way to gain presence in the local market while retaining 100% ownership. Whether based abroad or in the UAE, the parent company remains entirely responsible for the business activities of its branch. However, a branch can only conduct similar activities to its parent company.
Apart from maintaining 100% ownership of your business, and being permitted to trade in the local market, there are many other advantages to setting up a business in Dubai or anywhere in the UAE. Consider the following:
Tax Benefit – It cannot be denied that the country offers one of the most incredible tax regimes globally. It’s the most attractive feature of a branch office set up for any investor. Depending on the country of origin and jurisdiction, parent companies can enjoy a zero percent corporate tax rate.
Audit Stream – It can be complicated to audit multinational companies. Establishing a branch office can help you overcome this challenge. All funds that flow between the parent and branch company is easily and legally tracked. Thus, leaving a watertight audit trail for companies that need audited books.
Low Admin Burden – The complexities of running offices across multiple countries can be avoided if you set up a company in Dubai or anywhere in the UAE. This is because there is no need for a separate finance function. Branch offices are also not required to submit audited accounts.
Cost-effective – It can be very costly to enter new markets, particularly overseas. But this is not the case with a branch setup. There is no share capital requirement and no high upfront costs, so it’s a cost-effective route to take when entering new markets. Since branches are considered a small business setup, standard fees and applications are usually lower too.
How to Establish a Company Branch
Two types of branch offices are those set up in the Mainland and the free zones. The latter shall follow the licensing and registration requirements imposed by the free zone authority in which it will operate. If you’re convinced of the benefits of establishing a branch office and interested in building a presence in the UAE market, the setup process is incredibly straightforward.
First, you need to appoint a local service agent as your company’s representative. They can help you with administrative functions such as registration, obtaining a license, visas, etc. Part of their role is to obtain trade name registration and initial approval from the Ministry of Economic (MOE) to set up a branch office.
Your journey towards a UAE branch office can get underway with expert advice. You can rely on the company formation specialists of Austria Business Center to make the process smooth and uncomplicated. Call us at +971 4 454 9700 today!