Foreign companies can establish a UAE branch without creating a separate legal entity — the branch is an extension of the parent company. Here is a complete guide to opening a UAE branch in 2025.
UAE Branch vs. Subsidiary
A UAE branch is different from a UAE subsidiary company: Branch: not a separate legal entity — the parent company is fully liable for the branch’s obligations. Can only conduct the same activities as the parent. No minimum capital requirement but parent company guarantees are required. Subsidiary (new UAE company): separate legal entity. Limits parent liability. Can conduct different activities. Has its own share capital. For many foreign companies, a branch is preferred for: a quick market entry with minimal setup (no new articles, no new shareholders), a “test the market” approach with limited commitment, and professional services firms (law firms, accounting firms, consulting firms) that want to represent the parent brand directly.
UAE Branch Registration Process
Mainland branch: registered with the relevant emirate’s DED (Department of Economic Development) and must appoint a local service agent (a UAE national). The service agent is a nominee — they are not a shareholder and do not receive a profit share (typically a fixed annual fee of AED 10,000–25,000). Free zone branch: some free zones (DIFC, ADGM, DMCC) allow foreign companies to establish a branch in the free zone without a local service agent. Documents required: parent company certificate of incorporation, parent company memorandum of association/articles, board resolution approving the branch (notarised and attested), audited financials of the parent company (last 2 years), and passport of the branch manager. Cost: AED 15,000–40,000 for mainland branch registration, depending on emirate. Processing time: 4–8 weeks.