The company Law, in article (313) has a provision for a foreign company to have its representative office in UAE by virtue of setting up a rep. office in UAE. Through this setup, a foreign company is legally allowed to conduct the promotional activities of that parent company in UAE. It becomes a legal license to have the presence of the foreign company felt in the land of UAE. Such companies are restricted to have any direct business operations in the form of trading in the local market. The above is possible by going through the right process of setting up a rep. office license through an approval from the Ministry of Economy and the economic development. The foreign companies’ licenses to conduct business in UAE may not start their promotional activities before being inscribed in the Ministry’s register for foreign services. Similar to the professional company a UAE National local service agent would be appointed. The service agent is paid a fixed annual remuneration fee against the services rendered by him. The branch of a foreign company would be required to provide a bank guarantee of AED 50,000 in favor of the Ministry of economy as a part of the licensing procedure.
