How to Set Up a Branch Office of a Foreign Company in the UAE

If your company already operates outside the UAE and you want to extend your presence into the region without creating a separate legal entity, a branch office may be the right structure. A branch allows you to operate under your parent company’s name and legal identity while accessing the UAE market.

What Is a Branch Office?

A branch office is a direct extension of a foreign parent company — not a separate legal entity. It operates under the parent’s name (often with “Branch” appended), carries out the same or similar activities as the parent, and the parent company bears full legal liability.

Branch offices can be set up on both mainland and free zone. The branch does not have its own shareholders or separate corporate governance — it is simply a registered presence of the parent company in the UAE.

Why Choose a Branch?

A branch makes sense when your parent company wants to maintain direct control, use its existing brand and reputation, and avoid the complexity of setting up a separate subsidiary. It is commonly used by multinational corporations, engineering firms, consulting companies, and construction contractors.

Branches can participate in government tenders (if mainland), establish local contracts and bank accounts, sponsor employee visas, and build a physical presence.

Where to Set Up

Mainland branches are registered with the DED of the relevant emirate. In some cases, a Local Service Agent (LSA) — a UAE national — is required. The LSA does not hold equity or operational control but facilitates government paperwork.

Key Requirements

You will need the parent company’s incorporation documents — attested and apostilled from the home country. A board resolution authorising the branch registration and appointing a branch manager is required. The branch manager must hold a UAE residence visa. Financial statements of the parent company may be requested.

The Setup Process

Branch licences typically take two to four weeks to process, plus one to two weeks for visa processing. Banking for branches takes four to ten weeks — banks conduct enhanced due diligence on the parent company. Total: six to twelve weeks.

What It Costs

Mainland branch registration in Dubai costs approximately AED 25,000 to AED 50,000 for the first year. Free zone branch licences range from AED 15,000 to AED 40,000. LSA fees (if required) add AED 5,000 to AED 15,000 annually.