3 routes
Branch, representative office, or subsidiary. Each is registered differently and taxed differently.
Branch vs subsidiary · 2026
Branch vs Subsidiary in Dubai
The MOEC fee, the liability split, and the tax-group rule that decide it, with 2026 figures confirmed against the Ministry's own schedule.
Filed with DET and MOEC since 2009.
The Exchange Tower, Business Bay, Dubai.
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Three structures, not two
Foreign companies entering Dubai pick between three structures, not two. The right one depends on how long you're staying and how much of the parent's balance sheet you're willing to put on the line.
At a glance
AED 11,000
MOEC branch registration total. No bank guarantee, that requirement was removed in 2024.
≥95%
Parent ownership needed in a subsidiary to join an FTA tax group and file one consolidated return.
0%/9%
Corporate tax bands. Both structures pay the same rate, the AED 375,000 threshold doesn't change.
The core difference
What's the real difference?
A branch is the foreign parent operating under a Dubai licence, same legal person, full parent liability. A subsidiary, usually an LLC, is a separate UAE company the parent owns.
That single fact drives every other difference: registration steps, tax-group eligibility, and how a bank treats your KYC file.
3structures: branch, rep office, LLC
0%local ownership required since 2021
AED 11,000total MOEC fee for a branch
The core decision
Branch vs Subsidiary
Same activities, same 2026 tax rates, completely different registration path and risk profile. Here is the honest side-by-side, MOEC fee included.
Best for local liability limits
BranchExtension of parent
SubsidiarySeparate UAE LLC
Legal statusSeparate entity or not
Extension of the parent, no separate entity
Separate UAE juridical person
LiabilityWho's on the hook for debt
Parent liable for every branch debt
Capped at subscribed capital
RegistrationWhich authorities you file with
DET licence + MOEC registration
DET licence only
OwnershipLocal partner requirement
100% parent by default, no shares issued
Up to 100% foreign, most activities
Corporate taxRate on taxable income
0%/9% on income tied to the UAE PE
0% to AED 375k, 9% above, as resident
FTA tax groupConsolidate returns across entities
Not eligible, no separate legal person
Eligible at 95%+ common ownership
Bank accountKYC depth at onboarding
Heavier KYC, parent financials required
Standalone file, generally faster
MOEC feeFederal registration cost
AED 11,000 total, no guarantee since 2024
None, DET fee only
ExitHow you sell or wind down
No shares, only closure or a parent-level sale
Shares transfer to a buyer directly
Best for
Short projects, comfortable with the parent carrying full liability.
Long-term presence, ring-fenced risk, and eventual tax-group planning.
The honest read
Testing Dubai for under two years, comfortable with the parent standing behind every debt? A branch closes faster. Past that, or once tax-group planning matters, the subsidiary's liability wall earns back its extra cost.
Straight answers
Branch vs Subsidiary Myths, Corrected
The outdated claims still floating around Dubai setup advice.
Myth
A branch needs a AED 50,000 guarantee
Reality
That requirement was removed by Ministerial Resolution No. 138 of 2024. Budget AED 11,000 in MOEC fees instead.
Myth
Only a subsidiary can be 100% foreign-owned
Reality
A branch has no ownership percentage, it is the parent. The real 2021 change dropped the 51% local-partner rule for most LLC activities.
Myth
A DET licence is all a branch needs
Reality
DET covers the emirate-level licence. Federal MOEC registration is separate and mandatory, due within one month of the DET licence.
Myth
Branch and subsidiary file tax the same way
Reality
Both pay 0%/9% at the same threshold, but only a subsidiary can join an FTA tax group, a branch isn't a separate legal person.
Myth
A representative office is just a small branch
Reality
It's registered separately under the same 2024 resolution and cannot invoice UAE clients, a marketing and liaison presence only.
Myth
A branch is legally separate from its parent.
Reality
It is not. A branch is the parent operating under a Dubai licence, the same legal person, so the parent carries liability for its debts.
What you'll need
Documents required
The paperwork differs by structure. Branch and representative office share a track; a subsidiary follows its own.
Every route
Identity & personal
Passport copy
Clear scan, valid 6+ months, for every signatory.
Board resolution
Parent company's approval to open in the UAE.
Certificate of incorporation
From the home-country registry, confirming legal form and capital.
Branch & rep office only
Federal MOEC file
Trade name reservation
From DET, submitted to MOEC alongside the parent's certificate.
Commercial agent check
MOEC confirms no existing agent is registered for the same activity.
Auditor's letter
Required for a branch, waived for a representative office.
Subsidiary only
MOA & shareholders
Memorandum of Association
Drafted and notarised to your shareholding structure.
Shareholder agreement
Recommended for multi-shareholder LLCs, not DET-mandatory.
Ejari tenancy contract
Registered lease for the LLC's licensed address.
Foreign documents need attestation
Certificates issued outside the UAE, incorporation documents, board resolutions, powers of attorney, need attestation by the UAE embassy in the country of origin, then by the UAE Ministry of Foreign Affairs, before DET or MOEC will accept them. Build 2–4 weeks into your timeline for this chain alone.
MOEC won't wait. The one-month registration clock starts on the DET licence date, not on your MOEC filing date.
No guarantee, no excuse. Dropping the AED 50,000 guarantee didn't drop the deadline or the AED 100,000 late fine.
Keep digital copies. Clear PDF scans move faster through the MOEC and DET portals than photographed documents.
Real ranges, 2026
What Each Route Actually Costs
Three tiers, ordered by commitment. Federal MOEC fees below are confirmed against the Ministry's own schedule; DET licence and office costs vary by activity, so confirm those separately before you quote a client.
Cannot invoice locally
Representative office
A liaison presence for marketing and relationship-building, registered under the same MOEC resolution as a branch.
DET representative licence
MOEC initial approval + registration
No local trading or invoicing
AED 15,000 – 60,000 (estimate, confirm current DET fee)
No bank guarantee since 2024
Branch of a foreign company
Fastest route to a fully trading Dubai presence, at the cost of unlimited parent liability.
DET mainland licence (confirm current fee)
MOEC initial approval: AED 3,500
MOEC registration: AED 7,500
AED 11,000 in confirmed federal fees + DET licence
Ring-fenced liability
Subsidiary (mainland LLC)
A separate UAE legal person. No MOEC step, but MOA drafting and notarisation add cost DET fees alone don't show.
DET mainland licence (confirm current fee)
MOA drafting & notarisation
No federal MOEC registration
DET licence + MOA costs, no MOEC fee
Not sure which route is cheapest for your activity?
Tell us your activity, timeline and risk appetite and we return an itemised quote across all three routes, not a single headline number.
MOEC fees confirmed against the Ministry of Economy and Tourism's official service schedule, 2026. DET licence and office costs are indicative and activity-dependent, request a written quote before committing to a figure.
The registration path
How Registration Actually Runs
Six steps for a branch, four for a subsidiary. The paths converge at the bank.
Reserve your trade name
Through DET, for whichever structure you've chosen. Same first step for all three routes.
Get the DET licence
Emirate-level approval and licence issuance. For a subsidiary, this is most of the process.
- Critical stage
File MOEC initial approval
Branch and representative office only. AED 3,500, valid four months, no trading yet.
- Critical stage
Complete MOEC registration
AED 7,500, due within one month of the DET licence or a AED 100,000 fine applies.
Draft and notarise the MOA
Subsidiary only. Sets the shareholding structure the LLC operates under.
Open the bank account
Branches face heavier KYC, expect parent-level financials and board resolutions in the file.
Who Approves Your Structure
Every route clears DET. Only a branch or representative office adds a federal step.
| Authority | What they do | When you meet them | Key output |
|---|---|---|---|
| DET | Approves activity, reserves the trade name, issues the licence. | First, every route | Trade licence |
| MOEC | Initial approval, then registration, within one month of the DET licence. | Branch & rep office only | Registration certificate |
| FTA | Registers taxable persons, approves tax-group formation at 95%+ ownership. | After licensing | Tax registration |
| Bank | Reviews structure, ownership and, for branches, parent-level financials. | After licensing | Corporate bank account |
- DETIssues the mainland trade licence for all three structures.You meet them:First, every route
- MOECFederal registration for branches and representative offices only.You meet them:Branch & rep office only
- FTAHandles corporate tax registration and tax-group applications.You meet them:After licensing
- BankOpens the corporate account and runs KYC.You meet them:After licensing
Avoid these
Mistakes to avoid in 2026
The errors that cost branch and subsidiary applicants time and money.
Cost
Budgeting for a guarantee that's gone
The AED 50,000 guarantee was removed in July 2024. Quoting it as a current cost misquotes a branch's price.
Do this instead: budget AED 11,000 in MOEC fees, not AED 61,000.
Timing
Missing the one-month MOEC deadline
The clock starts on the DET licence date. Miss it and a AED 100,000 fine applies automatically.
Do this instead: file MOEC registration the same week the DET licence issues.
Authority
Treating DET as the finish line
A branch or representative office isn't legally registered until MOEC completes its own separate step.
Do this instead: track DET and MOEC as two filings, not one.
Tax
Assuming every structure can tax-group
FTA tax groups require each member to be a separate juridical person at 95%+ ownership. A branch cannot qualify.
Do this instead: confirm tax-group eligibility before picking a structure.
Ownership
Applying the old 51% rule to a 2026 LLC
That rule ended with the 2021 ownership reform for most activities, except those with 'strategic impact.'
Do this instead: check your specific activity, don't assume either way.
Banking
Underestimating branch KYC
Banks typically want parent financials and board resolutions before opening a branch account.
Do this instead: prepare the parent's financials before you apply, not after.
The fit check
Branch or subsidiary: which fits?
Three questions settle most cases before you engage counsel.
Recommended
Recommended4 signs
Choose a subsidiary if
- Limiting parent liability is a priorityThe LLC caps exposure at subscribed capital.
- You plan to join an FTA tax groupOnly a separate legal person qualifies, at 95%+ ownership.
- You need strong local banking relationshipsA standalone file generally clears KYC faster.
- You may sell or exit the Dubai business laterShares transfer directly to a buyer.
Consider4 signs
A branch may suffice if
- The engagement is under two yearsA branch is faster to close down after.
- The parent is comfortable with full liabilityNo ring-fencing needed for a short project.
- You want a marketing presence onlyA representative office may cost even less.
- You want the simpler registrationA branch files with MOEC and DET but forms no new company.
Why choose us
Why file your structure with us
Both routes run through the same desk, tracked to the deadlines that carry real fines.
DET and MOEC, one file
We track the DET licence and the federal MOEC registration as one sequence, so the one-month deadline never slips.
Itemised, not from-AED-X
MOEC's AED 3,500 and AED 7,500 fees are quoted as confirmed government figures, separated from our service fee.
FTA-registered tax guidance
If a tax group is part of your plan, we confirm the 95% ownership test before you commit to a structure, not after.
Bank introductions either way
We prepare the heavier KYC file a branch needs, or the standalone file a subsidiary needs, before you apply.
10K+
Companies formed
15 yrs
In business since 2009
2
authorities cleared, DET & MOEC
4.8★
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Send us your activity and timeline and we return an itemised quote across branch, representative office and subsidiary, confirmed MOEC fees, DET fee for your activity, no headline number.
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What our clients say about working with us
Real Google reviews from founders we have set up and kept compliant on the Dubai mainland.
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Abdul Sami3 months ago
Thank you to the team for supporting us with our company setup. Our case was not straightforward, especially the bank account opening, but they stayed committed and got it done.
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Paolo Chua8 months ago
I had a great experience opening a corporate bank account. The process was smooth and efficient. The staff were friendly, professional, and explained everything clearly.
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Amy Elliott Dunne4 months ago
The accounting and bookkeeping service has been exceptional. Attention to detail is impressive, and communication is always clear. Tasks are handled promptly.
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Rashed Al Falasi5 months ago
They confirmed our activity grouping before filing and flagged an issue the bank would have raised. Licensed in under two weeks with no surprises on the invoice.
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Marwa Khalil2 months ago
We came for a mainland LLC and stayed for renewals and PRO work. The same team answers the phone after the license is issued, which is rare here.
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