Things to Know About Branch and Representatives' Offices in UAE

The United Arab Emirates has quickly become one of the most desirable business locations globally. Its strategic location, world-class infrastructure, and supportive business environment make it an ideal choice for companies of all sizes.

Every day many international companies seek to establish their presence in the UAE by setting up a branch or representative offices. Although they might sound the same, there is a difference in the working of both. 

In this blog post, we will share everything you need to know about branch and representative offices in UAE. 

1. Difference Between Both

When expanding a business, there are a few different routes to take. These include branch openings or representative offices. While both serve the purpose of expanding a company's reach, there are some key differences between the two.

A branch office is a separate location of the same company, with its physical presence and ability to conduct business transactions. On the other hand, a representative office is more of a marketing or communication hub with limited ability to carry out business activities

Moreover, a branch office is a more significant investment but offers greater potential rewards, while a representative office is a smaller investment with more limited capabilities but lower risk. 

2. Registration Requirement

Before setting up branch and representative offices in UAE, the companies need to understand the registration requirements.

Both branch and representative offices must register with the Ministry of Economy and obtain the necessary licenses and permits. This ensures that the UAE government knows the company's presence and can regulate its activities accordingly. 

To give you an idea, some of the important requirements are as follows; 

• Providing parent company's certificate incorporation.
• Providing a power of attorney. 
• Providing a no-objection certificate. 
• Paying registration fee. 

It is advised to consult with a local expert or legal advisor to ensure a smooth working process. 

3. Validity of Registration 

Registering a branch or representative office in the UAE can be a great business opportunity.

Once registered, a registration certificate is issued by the relevant government authority. It's essential to note that the validity of this certificate is typically for one year. 

Therefore, it's crucial to keep track of your registration certificate's expiry date and get it renewed before it expires. Failure to renew the certificate can lead to legal complications and hefty fines. The renewal process might require you to submit updated documents or information, as well as pay renewal fees. 

These requirements may seem tedious, but they serve an important purpose. The government authorities must monitor and regulate the activities of offices and businesses to ensure they follow relevant laws and regulations.

Wrapping Up! 

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There are many things to take into consideration when it comes to setting up a branch or representative's office in the UAE. You must research relevant company regulations and tax and labor regulations before making any decisions on setting up in the UAE. 

It is also important to choose an experienced consultant like Capatt Services that can guide companies through the process. It doesn't matter what size your business is. Our team can do everything from introducing local partners to finding forms and even providing consultation after setup—whatever you need.

Contact us now for more information!