OPENING A BRANCH OF A LOCAL COMPANY IN DUBAI AND THE REST OF THE UAE

What is a Branch of a Local Company?

branch of a local company is defined as a separate office or branch of an existing company already licensed in the UAE but outside the Free Zones. This is an expansion of the local business into the free zone for the purpose of doing business within the free zone. The process of acquiring office space, warehouse space is almost identical acquiring an initial business location. The existing trade license must be amended to include the new business location. There are specific zoning rules so it is important that the business owner verifies the proposed business activities are authorized within the regulations. In most instances, a call to the Planning Department of the Department of Economic Development can establish legality. Once approved by the Free Zone Authority, the branch has the same authority for business activities as the parent company is permitted by the existing license. Because the Free Zones are basically self-regulating as far as businesses are concerned the Mainland UAE licenses and authorization do not apply automatically. The new local branch must be licensed by the Free Zone authority where it plans to locate.

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. This is subject to the approval of the activity or activities held and permitted in mainland Dubai, UAE. To open a branch of a 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.

 

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