branch of a local company office setup is a separate office or branch of an existing company. The local company already has a license in the UAE. Hence, this is an expansion of the local business. The process of obtaining a license for local branch is almost identical to acquiring an initial business location. However, it is important for a business to verify the proposed business activities authorized within the regulations as there are zoning rules.
A call to the Department of Economic Development can establish which activities permitted on the parent license can also be undertaken at the branch. The ownership of these branches reflects the shareholding of the parent UAE company. The trade name used in the branches however cannot differ from that used in the parent company. In addition, they must hold one or all the activities held in the main license. There is no need for capital if the legal form is an LLC, public shareholding company or private shareholding company.
A Branch of local company in Dubai will also have its own license. Therefore, can also have its own labor and immigration cards, permitting it to hire staff specific to its license. Rather than being dependent on the immigration and labor cards of the parent company.
OPENING A BRANCH OF A FREE ZONE COMPANY IN DUBAI
A branch of a free zone company can carry out commercial, industrial and professional business as long as the activity of the parent company has authorization in mainland UAE. The commercial and industrial license needs special approval for a branch legal form, however this is subject to the approval of the activity or activities held and permitted in mainland Dubai, UAE. To open a branch of local company in Dubai, you need to check with the Ministry of Economy before proceeding with the initial approval and the release of the license from the Department of Economic Development (DED). Do note, that for branch office setup (foreign or local) the ministry of economy is the main governing body. While the Department of Economic Development is your licensing department.
The Specific Requirements Needed.
Most of the requirements for setting up a local branch of an existing company are similar to formation of other business types also there are some subtle differences a future branch owner/manager should be aware of. Among these requirements is the 51% ownership by a UAE National and having this requirement already satisfied makes the formation of a local branch more certain, but documentation of ownership may still be required.
Branch of a local company
The following is a list of required documents for an individual shareholder:
•Proof of a Physical address for the business.
•A Certificate of Registration for the existing company.
•A lease agreement for the physical address specifying the leased space meets minimum requirements.
•Memorandum of Association or Article of Association for the original local business.
•Initial approval of activities from the prospective Free Zone Authority.
•The Trade name registration documents.
•The Copies of the Manager’s Passport and C.V. and proof of a University Degree
•Since this is an individual shareholder the shareholder must provide a copy of his passport
•There are no capital requirements for a branch of a local company
Branch of a local company
The following documents required for Corporate Shareholders:
•The Main business’s company profile.
•Address of the business.
•Lease agreement specifying area and serving as proof of a physical address for the proposed branch.
•Chamber of Commerce certificate for the main business.
•For the main business a certificate of Registration or Trade License.
•A board resolution from the main business board of directors expressing intent to establish a branch.
•The Notarized Article of Association for the existing main business (by the UAE notary public).
•A Notarized Memorandum of Association (by the UAE notary public).
•The approval for activities from the Free Zone Authority where the branch will operate
•The registration documents for the Trade name.
•Personal Information Sheet for each shareholder.
•Copies of the Manager’s passport, C.V. (resume) and proof of a university degree
•There are no capital requirements for a branch of a local company.
How Time Zone Business Management Will Help You
This list of required documents will look intimidating but Time Zone Business Management help remove the intimidation factor and make the process as painless as possible. Research ensure your new location lies within a zone authorized for your business activities and all the documents ready for submission with the local regulations.