This is a common question that occurs when it comes to setting up a new company in Dubai.

 

While branch office and representative office possess many complementary features such as being licensed on behalf of their parent company, they operate under commercial registration authority and are needed to have a UAE National Local Service Agent; however, there is a significant distinction between the two.

 

Branch offices are permitted to engage in commercial activities similar to its parent company and earn profits while representative offices are not permitted to do so.

 

A representative office’s role is limited to advertising or promoting their global parent company’s products and services.

 

Also representative offices in UAE can have only 4 employees.

 

Benefit of establishing a foreign branch in UAE

 

  • A foreign company’s branch in Dubai / UAE allowed 100% ownership.

 

  • The establishment of a branch in Dubai / UAE requires local sponsor. Local sponsor must be a UAE national or a company wholly-owned by a UAE national. Local officer has no rights in the branch office.

 

  • In UAE branch office managerial, operational and banking powers vested to the representative of the parent company

 

  • Establishing a branch office in Dubai can help the company maintain transactions and offer its service to customers.

 

  • By setting up of Branch office in Dubai /UAE companies can penetrate the UAE market by utilizing the brand name of mother company

 

  • Branch office are only permitted to offer the products and services of the parent company.

 

  • The Dubai / UAE branch office is exempt from tax in the UAE and can benefit from a 100% tax advantage.

Representative Office

 

By setting up a representative office, foreign businesses can join the UAE market.

Representative office in the UAE is not permitted to conduct business or trade in the UAE but may carry out marketing and promotional operations on the products on behalf of the parent company.

 

Features of Representative Office in UAE

  • The UAE Representative Office allows 100% ownership.

 

  • Representative office may only promote / market the parent company’s business activity.

 

  • The establishment of a branch in Dubai / UAE requires local sponsor. Local sponsor must be a UAE national or a company wholly-owned by a UAE national. Local officer has no rights in the branch office.

 

  • Representative offices are not allowed to enter business transactions.

 

It has never been easier to set up your own business. PMC Solutions DMCC takes care of everything so that you can concentrate on what matters – building your business.

 

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 or representative office whilst saving your time and money. Contact our business consultants for further guidance.

 

For more information log on to www.pmcsolutions.me or contact us at +971 588 631 656 or email at setup@pmcsolutions.me

 

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