A business owner could choose from four different categories and choose the one that would be the most useful for their company.
Apart from the ability to trade in the local market and secure 100% ownership of your company, which is the scenario for most types of branch offices, there are several other reasons for establishing a branch in the UAE. Here are the top five:
Benefits of opening a branch office in the UAE:
Without hitting on the exceptional tax structure of the country, it is impossible to address the advantages of setting up any type of business in the UAE. Based on the jurisdiction and country of origin, branch parent companies may benefit from the zero percent corporate tax rate of the UAE.
Auditing multi-national companies can be a quiet a task. Establishing a branch office enables to relieve this concern. Every transaction between the parent and the branch company gets legally monitored. This creates a stringent audit process for parent companies requiring audited books.
Less administrative burden:
In addition to bookkeeping and auditing, operating multi-national setups can be complicated. Also, when operating a branch office, most of this obstacle is avoided. There is normally no need for a distinct financing mechanism within branch offices of the UAE, as audited accounts are not needed.
Cost-efficient path to new markets:
It can be an expensive affair to enter new markets – notably those worldwide. Not so if you set up a UAE branch. Since there is no need for share capital, branch offices give enterprises a great opportunity to develop their business without high capital costs. However, because branch offices are often smaller than stand-alone companies, operating costs are also relatively lower.
Analyse before you buy:
All of the world’s feasibility analyses and market research could never balance actual trading knowledge in a particular market. Branch offices deliver a bit of real understanding, enabling foreign investors to establish a presence in the local market and provide an access to the feasibility of trying to open up a sizable company within the UAE.
Do not get into the hassle of running from one authority to other, leave that upon us and we at PMC Solutions DMCC will setup your branch office whilst saving your time and money. Contact our business consultants for further guidance.
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