Foreign company setup

Branch office in Dubai

Open your foreign company's branch in Dubai under the parent name.

  • 100% foreign ownership
  • No local service agent
  • Parent company name retained
  • Mainland or free zone
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Foreign company setup

What is a branch office in Dubai?

The same legal person as its foreign parent, licensed to operate in Dubai. It keeps the parent name and may only do what the parent does.

SameLegal person as the parent, not separate
100%Foreign ownership, no local agent
9%Corporate tax above AED 375,000
Choose your structure

Branch, rep office, or subsidiary: which do you need?

Pick the structure first, because it sets your cost, your tax, and what you are legally allowed to do. Four options, and the wrong one costs months.

FactorMainland branchFree zone branchRep officeLLC subsidiary
Legal statusExtension of parentExtension of parentExtension of parentSeparate entity
Can invoiceYes, UAE-wideYes, in scopeNoYes
Ownership100% foreign100% foreign100% foreign100% foreign
LiabilityParent on the hookParent on the hookParent on the hookStops at subsidiary
Best forServing UAE directRegional hubTesting the marketContaining liability
2024 reform

What changed for foreign branches in 2024

Two requirements that made branches expensive and slow are gone. Most guides online have not caught up, so you may be reading cost tables two years out of date.

  1. 01

    Guarantee gone

    Ministerial Resolution No. 138 of 2024 repealed the old regime. The refundable AED 50,000 deposit with the Ministry of Economy is no longer lodged.

  2. 02

    No local agent

    The same resolution removed the mandatory Emirati service agent for most mainland branch activities. No annual fee, no equity, no third party who can hold up a renewal.

  3. 03

    Lower day-one cash

    With the deposit gone and no recurring agent fee, opening cash and ongoing cost both drop. Full control of the licence stays with the parent.

  4. 04

    One exception

    Strategic Impact sectors, such as banking, insurance, and defence, still require a local agent under federal law.

Corporate tax

How a Branch Is Taxed

A branch is a taxable person. Its UAE-sourced income is taxed at 9% above AED 375,000. The parent is the registered taxpayer, but the branch's UAE profits are what the FTA assesses.

AuthorityWhat they doWhen you meet themKey output
Basic ruleThe branch registers with the FTA and files annual returns.On annual UAE profitFederal Decree-Law 47 of 2022
Free zone trapThe FTA treats it as a domestic permanent establishment, taxed at 9%.From the first month, not the first audit9% domestic PE
Pillar TwoEffective for financial years from 1 Jan 2025; applies to the UAE branch.In the group's consolidated accountsBEPS Pillar Two
  1. Basic rule9% on UAE-sourced income above AED 375,000; 0% up to it.You meet them:On annual UAE profit
  2. Free zone trapA mainland branch of a free-zone parent does NOT inherit the 0% rate.You meet them:From the first month, not the first audit
  3. Pillar TwoGroups above EUR 750m global revenue may face a 15% top-up tax.You meet them:In the group's consolidated accounts

Cost

What each branch route costs

Regional hub or re-export

Free zone branch

Trades within its scope, zone authority sets the base fee.

In-scope trade
Zone authority licence
Flexi-desk options
Testing the market

Representative office

Cannot trade or invoice, so it is the cheapest route in.

Marketing and liaison only
No revenue
Lowest cost

Want a costed branch quote?

See what moves your cost

Four things move a branch cost: business activity (some need external approvals from KHDA, RERA, DHA, or the Central Bank, each adding fees and time), mainland vs free zone (the authority sets the base fee), the office lease (a mainland branch needs an Ejari lease of at least 12 months), and year-one visa count (priced per person). DMCS gives a personalised quote after reviewing the parent and activity list.

Branch vs new company

Should you open a branch instead of a new company?

A branch keeps the parent's name, track record, and contracts intact, and you operate under that same identity. For a company whose reputation opens doors, that continuity is the whole point.

Recommended
Likely5 signs

A branch fits if

  • You want to trade under the parent's nameThe parent's reputation and contracts carry over.
  • You want 100% ownership, no partnerNo Emirati partner required after the 2024 reform.
  • You have no share capital to injectA branch has none, so nothing to capitalise.
  • You run the same activities as the parentApproved and operating quickly, no new scope.
  • You want to repatriate profit in fullProfit flows back to the parent, no LSA fee.
Get a structure recommendation
Reconsider5 signs

A subsidiary fits better if

  • Your UAE work could draw large liabilitiesA branch puts the parent on the hook; a subsidiary contains it.
  • You want an activity the parent lacksA branch cannot; a subsidiary can hold its own.
  • You plan to bring in a local partnerA branch has no shareholder structure for a stake.
  • Your banking needs a UAE entitySome banks underwrite branches more conservatively.
  • You may sell the Dubai business laterA subsidiary has shares to transfer; a branch has none.

The process

How you open a branch office in Dubai

With attested documents in hand, a mainland branch takes 3 to 6 weeks. The parent-company paperwork sets the pace, not the UAE side.

  1. Critical stage

    Structure and activity

    Decide mainland, free zone, or rep office, matched to what the parent is licensed to do at home.

  2. Approval and trade name

    Secure Ministry of Economy approval and reserve the trade name with DET.

  3. Critical stage

    Attest parent documents

    Run the parent documents through the four-step legalisation chain in the next section.

  4. Register with DET and MoE

    Submit the file, obtain the licence, and complete MoE branch registration within a month of issuance.

  5. Office, cards, and visas

    Sign the Ejari lease, collect the establishment and immigration cards, open the first visa file.

  6. Tax and banking

    Register for corporate tax and open the account. Bank onboarding runs 4 to 8 weeks, the slowest step.

Documents and attestation

Documents and attestation

The attestation chain is where most first-time applications fail. Miss one stamp and the file is rejected at the counter, not flagged early, which resets you by four to six weeks.

From the parent

Parent company documents

Certificate of incorporation
Proving the parent's legal existence, name, and activity.
Required
Memorandum and articles
The parent's constitutional documents.
Required
Board resolution
Approving the branch and appointing the manager.
Required
Power of attorney
For the appointed branch manager.
Required
Audited financials
The parent's recent audited statements.
Required
Auditor appointment letter
For the UAE branch.
Required
Four steps, in order

The attestation chain

Notarise
Before a notary in the parent's home country.
Required
Home-country MFA
Certifies the notary's signature.
Required
UAE embassy
Attests the file in the home country.
Required
UAE MOFA
Applies the final stamp in Dubai or Abu Dhabi.
Required
Then translate, before submission

The UAE is not part of the Hague Apostille Convention, so an apostille on its own is never enough: every document needs full consular legalisation, and an Arabic translation from a UAE Ministry of Justice-licensed translator. DMCS handles both in the same engagement.

Start attestation first. The home-country chain sets the pace; a missing stamp resets you 4 to 6 weeks.
Use a licensed translator. Only a UAE Ministry of Justice-licensed translator is accepted.
Match activities to the parent. A branch cannot run a line the parent is not licensed for at home.

Annual compliance

Who regulates a branch, and the yearly duties

Why DMCS

Why open your Dubai branch with DMCS

Parent-side attestation, UAE registration, tax setup and annual compliance from one office. Not handed between three vendors.

Where branch setups go wrong

We tell you branch or subsidiary on the first call

We verify if a branch or subsidiary fits your liability profile and partner plans before any DET filing begins.

01

Attestation and translation, end to end

Your team is not chasing an embassy in one country and a ministry in another. We run the four-step chain and the legal translation as one job.

02

Tax modelled before you sign

Including the free-zone permanent-establishment trap that catches groups using a free-zone parent for a mainland branch. You see the 9% coming, in your own numbers, ahead of time.

03

One team for setup and every renewal

The people who registered the branch file the annual renewal and coordinate the audit, so nothing falls through the gap between setup and compliance.

Real results from our clients

What our clients say about working with us

Real Google reviews from founders we have set up and kept compliant on the Dubai mainland.

DMCS.

Dubai Mainland Company Setup, by the team behind Riz & Mona

163+ Google reviews

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Straight answers

Dubai branch office: FAQs

No. A branch is a registered extension of the foreign parent, not a separate entity. It has no shareholders and no share capital, and the parent carries full legal and financial responsibility for everything the branch does.
A branch shares the parent's legal identity, so the parent is liable for its debts and contracts. A subsidiary is a separate UAE company, owned by the parent but distinct, so liability stops at the subsidiary. Choose a branch to trade under the parent name, a subsidiary to contain liability or bring in local partners.
Yes. A mainland or free zone branch can invoice and earn revenue within its licensed activities. A representative office cannot: it is limited to marketing and liaison under Article 339 of Federal Decree-Law No. 32 of 2021.
For most mainland branch activities, no. Ministerial Resolution No. 138 of 2024 removed the mandatory Local Service Agent. The narrow exception is Strategic Impact sectors such as banking, insurance, and defence, where a local agent is still required by federal law.
No. Ministerial Resolution No. 138 of 2024, effective 30 July 2024, removed the refundable AED 50,000 bank guarantee for foreign-company and free-zone-company branches. Any cost estimate that still includes it is out of date.
Three to six weeks for a mainland branch, once the parent documents are attested. The attestation chain in the home country sets the pace at the start, and the corporate bank account, at four to eight weeks, is the longest step at the end.
Yes. Under Federal Decree-Law No. 47 of 2022, a branch is a taxable person, and its UAE-sourced income is taxed at 9% above AED 375,000. A mainland branch of a free-zone parent does not inherit the 0% rate; the FTA treats it as a domestic permanent establishment taxed at 9%.
No. A branch may only carry out the activities the parent is already licensed for in its home country. If your UAE plan involves a new line of business, you need a subsidiary, which can hold its own separate activities.
The certificate of incorporation, memorandum and articles, board resolution approving the branch, power of attorney for the manager, and audited financials. Each is notarised at home, certified by the home foreign ministry, attested by the UAE embassy and MOFA, then translated into Arabic by a licensed translator.
Yes. A branch must file audited financial statements of the UAE branch with the Ministry of Economy every year, prepared by a UAE-registered auditor. It audits the branch's own UAE accounts, not just the parent's global statements, and does not apply to representative offices.

Get a branch-or-subsidiary recommendation.

Send us your parent company details and the activities you want to run in the UAE. We come back with the right structure, a costed quote, and the full document list.

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