How to open a branch office in Dubai

The United Arab Emirates has long established itself as a region with great prospects for conducting international business, as well as opening branches of foreign enterprises. The country offers unique opportunities for organizations looking to expand their presence in the Middle East, Asia and Africa.

Advantages of doing business in the UAE:

Low tax burden. There is no income tax on profits, dividends or capital, which significantly reduces the financial burden on businesses.
Fast and transparent registration procedure for foreign companies.
Location in a strategically important region: a bridge between Europe, Asia and Africa.
Low cost of energy resources: access to cheap oil and gas makes the Emirates an attractive place for energy-intensive industries.
Developed education system, which attracts specialists from different countries, providing access to highly qualified labor force.
Developed infrastructure: modern transportation system, telecommunication networks and developed banking system.
Foreign companies can own 100% of shares of their enterprises in the UAE.
Foreign companies can freely transfer their profits abroad.

Before opening a company, it is necessary to decide where to operate: on the mainland or in a free economic zone. This choice depends on the specifics of the company's activities and its long-term goals.

Functions of branches in the UAE:

Placing an office with employees: Branches allow companies to have a physical presence in the UAE, providing convenience to serve customers in the region.
Official registration: Registration in the UAE gives a company official status, making it easier to conduct business and establish partnerships.
Promotion of goods and services: Branches provide a platform for business events, exhibitions and presentations, helping to promote products in a new market.
Tax Relief: A branch can utilize tax incentives provided by the UAE, reducing the tax burden.
Expanding production capacity: Opening a branch allows companies to expand production and distribution of goods and services in the region.
Investment and capital saving: The UAE's well-developed banking system provides a secure environment for investment and capital saving.
Fast logistics: The UAE's strategic location provides convenient transportation routes for a fast and efficient logistics process.

Forms of branch operations in UAE:

1

Representative office:
The main function is marketing and advertising. The representative office is not authorized to conduct trading activities, but can act as a link between the company and the local market.

2

Subsidiary:
A separate legal entity with greater autonomy. A subsidiary can produce goods and services, provide services, conduct trading activities and implement investment projects.

3

Branch:
Does not have independence and is subordinate to the head office. A branch can perform the same functions as a subsidiary, but makes decisions only in consultation with the head office.

The United Arab Emirates offers low taxes, simplified registration process, developed infrastructure, access to qualified labor force and favorable geographical location. All this undoubtedly contributes to the successful development of international business. Opening a branch office in Dubai can be a decisive factor for the company to expand into new markets, increase profitability and reach new heights of success.

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