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How to establish representative office of a foreign company in UAE?

Establishing a representative office in UAE for a foreign company or parent company is a huge step. A foreign company in UAE may have several purposes of establishing a UAE representative office.

However, there are some requirements and conditions for incorporating a representative office in Dubai or anywhere across the UAE. Let us analyze the requirements, the procedures and cost of setting up a representative in Dubai UAE.

How to establish a UAE representative office? What is the requirement of setting up a representative office?

  • Reliable Local Agent – Registration of a branch or representative office for a foreign company in Dubai or anywhere in the UAE requires a local agent. This is the first step of starting a representative office in UAE. It is mandated to have a UAE national as your local service agent in Dubai UAE.
  • Trade Name Reservation – The Department of Economic Development (DED) of the respective Emirates reserves the trade name for the foreign or parent company.
  • Initial Approval – After submitting the passport copies of the investors, the parent company papers and preliminary documentation, the Department of Economic Development (DED) provides the initial approval / pre-approval to setup representative office in UAE.
  • Ministry of Economy (MOE) – An approval from the Ministry of Economy is also required to start a representative office in UAE. The UAE Ministry of Economy provides an application that must describe the parent company or foreign company. The Ministry of Economy application needs details such as address of the head office, nature of the business, allotment of shares, etc. The Ministry of Economy may also demand paperwork concerning the parent company.
  • DED License – The approval from the Ministry of Economy must be submitted to the Department of Economic Development to proceed with the process of setting up a representative office in UAE. Also, an added documentation will be submitted to the DED depending on the nature of the representative office. After which the commercial license is issued by the DED.

As we have seen in each step, documentation plays a major role. Let’s have a clear view of the mandated documents required to set up a branch office in UAE.

What are the documents required to establish a representative office in UAE?

Parent Company’s or Foreign Company’s

  1. Certificate of incorporation or Trade License
  2. Board of Resolution Attested
  3. Power of Attorney Attested
  4. Memorandum of Association (MOA)
  5. Articles of Association (AOA)
  6. Local Agent Agreement (Notarised)
  7. Added Government Approval
  8. Investors Passport Copies

What are the advantages of establishing a representative office in UAE?

  • Establishing a representative in UAE offers a lot of tax advantages. Also, representative office setup will have limited tax liabilities and 0% corporate tax rate.
  • The total setup cost of a representative office in the UAE is comparatively low.
  • There is liberty to have numerous shareholders while setting up a representative unlike generic company setups.
  • No minimum share capital is required to establish a representative office in UAE.
  • Foreign companies experience great international expansion and global connections through a representative office in UAE.
  • Setting up a representative office in UAE is quick and the administrative process is swifter.

What is the cost of establishing a representative office in UAE?

Business setup fees for representative office in Dubai

No.

Charges

Type of Fees

Period Covered

Amount

License and Service Agent cost in Dubai
1

Initial Approval

Gov’t Fees

One time

AED 235

2

Name Approval

Gov’t Fees

One time

AED 735

3

Typing of MOA / LSA

Typing centre

One time

AED 500

4

Notarization of MOA / LSA

Gov’t Fees

One time

AED 875

5

Service Agent Fees + PRO services (due on the day of court agreement)

Sponsor or Service Agent

Every Year

AED 20000

6

License Fee

Gov’t. Fees

Every year

AED 6600

Added business setup fees for representative office in Dubai
7

Rented Office

Depends on requirements

Depends on requirements

Depends on requirements

8

Market fees 2.5% of Premises annual rent to be paid to Economic Department.

Gov’t. Fees

Every Year

Variates

9

Arabic name free – Foreign name charges AED 2,000/

Gov’t. Fees

Every Year

AED 2000

10

Ministry of Economy fees

One Time

Every Year

AED 15000

11

Ministry of Economy REFUNDABLE DEPOSIT

One Time

Every Year

AED 50000

Fees in labour and immigration department
12

Immigration card fees

Gov’t Fees

Every 3 years

AED 760

13

Labour Card fees

Gov’t Fees

one time

AED 2700

14

Telephone + P.O. Box Update (Economic Dept.)

Gov’t. Fees

one time

AED 560

15

Company Rubber Stamp

SF

one time

AED 100

 

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