UAE Branch Office Setup — A Complete Guide for International Companies

What Is a Branch Office in the UAE?

A UAE branch office is not a separate legal entity. Instead, it functions under the same legal identity and name as the foreign parent company. This makes it ideal for businesses that want to enter the UAE market without forming a new local company or altering their brand structure.

Key Benefits of Establishing a Branch Office

1. 100% Foreign Ownership

The parent company retains complete ownership and control of the branch. There is no need for local shareholders or equity distribution.

2. Same Brand, Same Activity

Your UAE branch can conduct the exact business activities of the parent company, helping maintain brand consistency and strengthening market trust.

3. Full Access to the UAE Market

A branch office is allowed to trade, offer services, and sign contracts directly within the UAE mainland or a free zone, depending on the license.

4. No Minimum Capital Requirement

Most branch structures do not require a mandatory share capital, which reduces financial barriers for market entry.

5. Competitive Tax Framework

The UAE offers a business-friendly tax environment, helping foreign companies expand efficiently and cost-effectively.

UAE Branch Office Setup Process

1. Prepare Parent Company Documents

This includes incorporation certificates, board resolutions, business profiles, and proof of activities. These documents may require attestation.

2. Appoint a Local Service Agent (For Mainland Branches)

A local service agent (LSA) facilitates government processes but does not hold ownership or profit rights. They assist with administrative and regulatory compliance.

3. Submit Application for Initial Approval

Your application is submitted to the relevant authority (Department of Economic Development for mainland or the chosen free zone authority).

4. Obtain the Business License

Once approved, a branch office license is issued, allowing you to legally operate in the UAE under the parent company’s name.

5. Complete Establishment Procedures

This includes opening bank accounts, leasing office space or virtual office facilities, and registering with immigration and labor departments.

Mainland vs Free Zone Branch Offices

Mainland Branch

Operates across all UAE markets
Can work with government and private sectors
Requires a Local Service Agent

Free Zone Branch

Located within a specific free zone
Enjoys zone-specific benefits (tax exemptions, customs advantages)
Best for international activities or specialized industries

Ongoing Compliance Requirements

After licensing, your branch office must maintain:

Annual license renewals
Updated tenancy or virtual office agreements
Compliance with UAE immigration and labor laws
Timely document renewals and governmental filings

Professional support ensures seamless compliance and uninterrupted operations.

Branch Office Setup Assistance by BizVibez

BizVibez provides complete support for establishing and managing your UAE branch office — from documentation to licensing and operational setup.

Our Services Include:

Bank Account Opening in UAE
Health Insurance & Compliance Services
Operational Services & Virtual Office Solutions
Legal Services & Document Handling
PRO and Government Liaison Services

We simplify every step so your business can enter the UAE market smoothly and confidently.