Different types of branch offices which you can open

A business setup in UAE is a buzz among entrepreneurs as it has become the most preferred location in terms of benefits, infrastructure, communication, government aids etc. Along with this, with the implementation of the vat, UAE has become a fast developing business hub as well with a high rate than what it was five years back.

Investors prefer a business setup in UAE also because of the high and sophisticated living and working conditions. The introduction of vat has ensured that the revenues that the investors will earn will be double than what they have earned in the last decade itself. UAE has brought forward diversified and strategic economic projects that ensure the revenues.

Why do a business setup in UAE is because of an increase in FDI flow, the GDP has accelerated to a high level, the company setup laws have become more friendly which has also got international accreditation. Thus, more foreign investors are moving into UAE today. Moreover, the country has distinct business specifications and categorized business jurisdictions that makes doing business easy.

Due to this, company formation in UAE has been tagged as one of the best places across the globe. The government is giving a lot of business opportunities and state-of-the-art facilities. The country houses the best infrastructure as per the business needs too where for example, there are places where companies can do business even 24 hours.

So when you own a company, it is necessary to have a dedicated outlet. These are often referred to branches too. A branch office is not a separate legal entity. It is only a means that functions to help the business to grow so that you can reach various places. You can establish your presence in new regions which will add authenticity and earn more revenues.

How can you get a branch office?

You need to file an application for this to the Ministry of Economic and Commerce through an agent. A permit letter is issued from the ministry. This approval must be secured from the needed authority. After this, the local economic department will be registering the branch office. Only after this, you will be getting the business license to open the branch.

Different types of branch offices

·         GCC company branch: Only a GCC based company can open this type of branch and extend business in any of the countries that form the GCC. The company can undertake more than one activity as stated in the company license. Even if they have multiple branches, they can register for the same.

·         Foreign company branch: You can open a foreign company branch in UAE and own it, i.e. have 100% ownership. You can operate this branch as headquarter in the country. However, if you want to import any good, you have to do it only through a local firm.

·         Free zone company branch: This branch has to be located in the UAE’s free zones. You can use this branch to expand your business. You can only open this kind of branch in the mainland; however, you need to get a license from DED.

Along with this, you must have an Emirati shareholder. In case, you do not have a shareholder who is local, you can get the branch license approved by the concerned ministry. A local service agent will help you with this.

·         UAE company branch: This kind of branch is only an extension of any UAE-based company. The company can only extend its branches within UAE and undertake all the activities that are stated in the company license.

These are the different branch offices that you can open for your business in UAE. However, these branch offices depend on the type of company that you are forming.