A branch office allows a foreign company to operate in the UAE under its parent company’s name without creating a separate legal entity. The branch’s liabilities flow back to the parent company. Here is the full setup process.
UAE Branch vs Subsidiary vs Representative Office
Branch Office: An extension of the foreign parent company. Can conduct the same business activities as the parent. The parent company is fully liable for the branch’s obligations. Requires a UAE national service agent (for mainland branches). Subsidiary: A separate UAE legal entity (LLC or FZ company) owned by the foreign parent. Liability is limited to the subsidiary’s assets. More common than branch offices. Representative Office: Can only promote the parent company’s products/services — cannot generate revenue in the UAE. Lowest cost but most restricted.
Step 1: Choose Branch Location (Mainland or Free Zone)
Mainland branches are approved by the Ministry of Economy (MOE) and the relevant emirate DED. A UAE national service agent is required for mainland branches (they hold no ownership but their signature is required for government filings). Free zone branches: most UAE free zones allow branches of foreign companies — processed entirely through the free zone authority without a national service agent requirement.
Step 2: Prepare Parent Company Documents
Required: Certificate of Incorporation of parent company (attested by UAE embassy in the parent country + UAE MOFA), Memorandum and Articles of Association of parent company (attested), Board resolution of parent company authorising UAE branch establishment, Power of Attorney appointing the UAE branch manager. All documents must be notarised in the country of origin, attested by the UAE embassy there, and re-attested by UAE MOFA in Abu Dhabi.
Step 3: MOE Registration (Mainland Branch)
Submit attested parent company documents to the UAE Ministry of Economy for initial approval. MOE processing: 10–20 working days. MOE issues a Commercial Registration for the branch. Then register with the relevant emirate DED for the trade licence. Total cost: AED 15,000–30,000 in government fees.
Step 4: Annual Compliance
UAE branch offices must file annual audited financial statements, maintain a UAE bank account separate from the parent, and renew the UAE trade licence annually. The national service agent must sign the annual renewal documents (mainland branches). Service agent fees: AED 5,000–20,000/year depending on the agent.