Opening a Branch Office in Dubai, UAE: Full Setup Guide

8 Aug 2025

By Vista Corp

Over the years, Dubai has become a hotspot for businesses to set up and grow exponentially. Therefore, it’s not new for companies from across the globe to open a branch office in Dubai. From world-class infrastructure to a vibrant economy, the country favours businesses in ways that become their growth catalyst. The ease of doing business in a Freezone is another aspect that makes Dubai attractive to investors from around the world. 

Combining all the factors, the percentage of Dubai branch office registrations has gone up in recent years. Amid all this, the question of how to open a branch office in Dubai remains a popular one, as it can be confusing, and UAE business compliance can be complicated. 

Therefore, this blog will take you through everything important you must know about opening a branch office in Dubai. Let’s get into it. 

What is a Branch Office?

A branch office is like an extension of a parent company, set up in a different location, but still part of the main company. Unlike a subsidiary, which is a separate company, a branch office is directly tied to the parent company and operates under the same legal and financial structure.

For example, imagine a tech company in India called “XYZ” that wants to expand its services in Dubai. Instead of starting a new company, XYZ can open a branch office in Dubai. This Dubai branch will represent XYZ in the region, offering its products and services while following the same rules and policies as the parent company in India.

Branch office setups in Dubai are ideal for companies seeking to enter new markets without the complexities of establishing a new company. They allow for central control, smoother operations, and cost-effective expansion while keeping the brand consistent across different locations.

Why Open a Branch Office in Dubai?

There are multiple reasons to open a branch office in Dubai. Explore them one-by-one below: 

1. 100% Foreign Ownership

Unlike a local limited liability company (LLC), a foreign business can establish a branch office in Dubai with 100% ownership. This means the parent company fully owns the branch, without needing a local partner.

2. Same Legal Status as Parent Company

A branch office in Dubai operates under the same legal framework as its parent company. It can conduct business under the parent company’s name and does not require a separate legal identity. This gives it the same rights and responsibilities as the main business.

3. Fully Functioning Enterprise

A branch office is not just a representative office. It is a fully functioning business that can perform the same activities as the parent company, including signing contracts, hiring staff, and generating revenue.

4. Ability to Carry Out Specific Activities

The branch office in Dubai can carry out transactions and engage in activities as specified in the business license. This means it can operate commercially, unlike a representative office that’s limited to marketing and promotional activities.

5. Local Service Agent Requirement

While a foreign company can have 100% ownership of its branch in Dubai, it must appoint an Emirati national or a UAE-owned business as a Service Agent. This is a mandatory requirement.

The Service Agent is responsible for certain administrative duties, including dealing with local government authorities and ensuring compliance with local laws.

6. Local Agency Agreement

The Service Agent arrangement must be formalised in a notarised agency agreement. This agreement outlines the agent’s role, responsibilities, and fees, ensuring that everything is legally compliant with UAE law.

7. Access to the UAE Market

Setting up a branch office gives foreign companies direct access to the UAE market, allowing them to offer products or services in one of the fastest-growing economies in the region.

Mainland vs. Free Zone: Different Types of Foreign Branch Offices in Dubai

In Dubai, foreign companies can establish two types of branch offices: Mainland branch offices and Free Zone branch offices. Each type comes with its own set of regulations and requirements, and it’s important to understand the key differences before deciding which one suits your business needs.

Mainland vs. Free Zone Branch Offices

• Free Zone Branch Offices: These must be registered with and licensed by the relevant Free Zone Authority. A Free Zone branch is limited to operating within the designated free zone where it is registered.
• Mainland Branch Offices: Foreign companies can establish a branch office in the Dubai Mainland under the UAE’s Companies Law (Article 313). These branches can engage in their full range of activities as per the license granted.

Key Differences

• Representative Offices: Unlike branch offices, representative offices can only engage in promotional and marketing activities on behalf of the parent company, without directly conducting business or making sales.
• License Process: Before obtaining a license from the Department of Economic Development (DED), foreign businesses must first receive approval from the Ministry of Economy.

Foreign companies that want to expand into Dubai can choose between a branch or a representative office based on their business activities. For those looking to carry out full business operations, a branch office in the Mainland or a Free Zone would be more suitable. Open a foreign company branch in Dubai with a clear understanding for better efficiency and growth. 

How to Open a Branch Office in Dubai: Step-by-Step Process

To open a branch office in Dubai, UAE, there is a structured legal and administrative process. Here is a detailed, step-by-step guide that covers branch office requirements in Dubai, the key legal procedures to open a branch office in the UAE, and crucial information on how to obtain your branch office license in Dubai.

Step 1: Decide the Jurisdiction and Business Activities

• First, determine whether you want to establish your branch office on the Dubai Mainland or in a Dubai free zone.
• Select your business activities, ensuring they align with the parent company’s operations and are approved by Dubai’s Department of Economy and Tourism (DET) or the relevant free zone authority.

Step 2: Appoint a Local Service Agent (If Opening in the Mainland)

• To open a foreign company branch in Dubai mainland, you must appoint a Local Service Agent (LSA), who must be a UAE national.
• The LSA handles all legal formalities with government departments but has no ownership or operational control and is paid a fixed annual fee.

Step 3: Reserve Your Trade Name

• Reserve the branch’s trade name, usually matching your parent company’s name or an approved variation.
• The trade name must comply with UAE regulations and reflect your business activity.

Step 4: Obtain Initial Approvals

• Submit an application with supporting documents (such as the parent company’s license, Memorandum & Articles of Association, notarised board resolution, and power of attorney) to get initial approval from the DET or the relevant free zone authority.
• Documents must be translated into Arabic and attested in both the parent company’s country and the UAE by the respective embassies.

Step 5: Approval from the Ministry of Economy (Mainland)

• For mainland branch offices, submit your documents to the Ministry of Economy for further approval.
• The Ministry may refer the application to relevant federal committees for special business sectors and final consent.

Step 6: Lease Office Space in Dubai

• A physical office or at least a flexi-desk workspace is a mandatory branch office requirement in Dubai.
• Submit your tenancy contract (Ejari) with the licensing application.

Step 7: Finalise and Obtain Your Branch Office License in Dubai

• Once all regulatory approvals are secured, the DET (mainland) or the relevant free zone will issue a branch office license in Dubai.
• The branch license authorises your company to legally start operations in Dubai under your parent company’s name.

Step 8: Register with Commercial and Tax Authorities

• Register your branch office with the relevant authorities, such as the Dubai Chamber of Commerce and the UAE’s tax authority (VAT), if applicable.
• This registration is crucial before you can legally hire employees, open corporate bank accounts, and conduct business activities.

Step 9: Hire Employees and Commence Operations

• After meeting all branch office requirements in Dubai, including licensing and registration, you can recruit staff and begin business operations.
• Ensure compliance with local labour laws and immigration regulations during hiring.

D/B Branch Office and Representative Office in Dubai

If you are wondering whether a Branch Office or a Representative Office is the same, it’s not. Understand the differences between the two below:

Documents Required to Open a Branch Office in Dubai, UAE

To open a branch office in Dubai, UAE, the following documents are required as of 2025. The documents must be notarised and attested in the parent company’s home country, and then by the UAE Embassy, and (for mainland branches) translated into Arabic:

• Parent company’s Certificate of Incorporation (notarised and attested)
• Memorandum and Articles of Association (MOA/AOA), notarised and attested
• Board resolution approving the establishment of the Dubai branch
• Power of Attorney in favour of the branch manager, detailing authority
• Audited financial statements of the parent company from the last two years
• Parent company’s Good Standing Certificate (sometimes specifically requested)
• Local Service Agent agreement (for mainland branch only)
• Trade name reservation certificate (for the branch office)
• Tenancy contract/Ejari (lease agreement) for office premises in Dubai
• Passport copies of the branch manager, directors, and authorised representatives
• Visa copies of directors, if applicable
• Business plan and statement of operations, if specifically requested by the authority
• Approval from regulatory authorities, if the business activity is regulated

Important procedural notes:

• All original documents in other languages must be accompanied by a legal Arabic (or English, if accepted by the free zone) translation.
• Free zone branches may have slightly different requirements and usually do not require a Local Service Agent.
• Additional documents may be requested based on the sector or at the discretion of Dubai authorities.

*This list covers the standard branch office requirements in Dubai for foreign companies seeking to register and obtain a branch office license in 2025.

10 Common Mistakes to Avoid When Setting Up a Branch Office in Dubai, UAE

• Not Understanding Legal Requirements
• Choosing the Wrong Jurisdiction
• Neglecting Local Service Agent
• Incomplete or Improper Documentation
• Underestimating Costs
• Delaying Ministry Approvals
• Ignoring Market Research
• Skipping Office Space Requirements
• Overlooking Tax Compliance
• Not Planning for Employment

Conclusion

Starting a branch office in the UAE offers foreign companies a simple yet effective way to expand into one of the world’s most dynamic markets. With its strategic location, business-friendly environment, and incentives, Dubai is an ideal destination for global businesses seeking to grow their presence in the Middle East. Knowing how to open a branch office in Dubai and the legal requirements, such as appointing a local sponsor for the Dubai branch office, ensures a smooth and successful setup. With the right guidance, your business can survive and thrive in this vibrant market and set the stage for long-term success. At Vista Business Setup, we provide expert guidance throughout the entire process of setting up your branch office in Dubai. From assisting with the step-by-step process to helping you navigate legal requirements, we ensure a hassle-free setup. Let us handle the complexities while you focus on growing your business.