Opening a branch in UAE is more challenging than opening a branch in the European Union or Asian countries like Thailand since there are lots of country-specific rules and procedures for registering branches.
Of course, this doesn’t mean that it’s impossible. Far from it, actually.
If you’re wondering how to set up a branch office in UAE, you’ve come to the right place. In this article, we’re going to discuss the benefits of opening a business branch in the UAE, the requirements, and the exact process in detail.
Let’s start with discussing…
What Are The Benefits of Branching Out in UAE?
The business process in UAE is more complex for foreigners from outside the GCC, but the individual taxation system makes UAE a very attractive market. This is especially true if you would like to transfer goods and services between the UAE and your country of residence. The cost for transferring goods and services from one branch in another GCC member state can be as low as 0% of your business activity is not considered trading in nature.
What Is Required To Open A Business Branch In UAE?
The most important document that you will need to open a business branch is an investment certificate (no commercial registration is required). You also need to apply for a work permit since only employees with proper documents are allowed to set up a company in UAE.
No employment visa, labor card, or special skill certification is required by law for applicants who wish to start their own businesses whether they plan to hire staff or not. However, hiring at least one local UAE national is mandatory for companies that plan to hire employees. This person must hold an employment visa and labor card, which can be obtained once the work permit has been approved by the Ministry of Labor.
According to the law, only citizens of GCC member states are allowed to start their own business unless they are successful entrepreneurs who have lived outside the Gulf region for more than ten years.
How To Open A Business Branch In UAE?
The first step toward opening a successful company in the UAE is applying for an investment certificate (no commercial registration is required). The application can be submitted online through the website of Dubai Trade; it usually takes 15 days to process. Then your branch office should be registered with Dubai Commerce and Tourism Promotion Board (DCTPB). You will be required to submit the following documents:
1. A certified copy of the approval certificate from Dubai Investments Park Authority
2. The commercial registration form (provided by DCTPB)
3. Two color photographs (5x7cm) of the business owner and a passport-sized photo for each company shareholder
4. Photocopy of passport or GCC national ID card of all shareholders along with visa copies if they are not GCC nationals
5. Documents proving your identity and UAE residency status (if you do not hold a GCC national ID card)
6. Documentary evidence confirming the source and availability of start-up capital, i.e., list of shareholders, proof of funds availability, etc.
7. Photocopy of trade license (if you already have one)
8. Documents confirming the company’s activities and line of business
9. Original company stamp made in Dubai at Dubai Chamber of Commerce
10. A certificate from an authorized UAE bank that confirms your available start-up capital (only required for foreign owners who are not GCC nationals, i.e., people without a national ID card issued by any GCC member state)
11. The latest tax number statement in addition to the labor card in cases where recruitment is allowed in accordance with Ministry of Labor rules (a labor card will be given after employment visas are approved). Note that applications submitted online can be approved if all documents are attached (not all of them are mandatory) and the amount of start-up capital is Dh500,000 or more. If approved, applicants will be notified by way of SMS or on their registered email address.
You can find your nearest branch office registration office on the DCTPB website. The registration fee varies according to the company’s activity; it is usually around Dh5,590 for services rendered in commercial-free zones and Dh7,920 for other companies.
How To Open A Business Bank Account In UAE?
Your business bank account should be opened at least one day before you open your company in Dubai Trade E-System. It takes up to five days to verify your name(), date(s) of birth() and nationality(). You can fill in the bank account opening form online or on paper.
Businesses must be registered with Dubai Trade E-System to open a commercial bank account. The application is made through a special website where new users have to provide their contact information before applying for a membership license which costs Dh1,000 plus VAT at five percent. An electronic identity card (eID) will be sent to them by email within three days of submitting their application.
Closing Thoughts
As you can see, setting up a business branch in UAE is not very difficult if you are willing to follow all the required steps. It is important to note that some branches are allowed to conduct only certain activities while most of them are free to choose what they do. The most important thing however is having enough capital available for your company’s needs.