Setting up a Branch of Foreign Company in Dubai, UAE
The company Law, in article (313) has a provision for a foreign company to operate its activities in UAE by incorporating a branch company. Through this setup, a branch of a foreign company can legally conduct its business in the local market and can directly indulge in the operational business activities. The above is possible by going through the right process of setting up a branch 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 operations 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.