Summary
Setting up a branch office in Dubai lets a foreign or UAE company trade under its existing name without forming a new entity. This guide covers branch vs subsidiary vs representative office, the Ministry of Economy and DET registration sequence, documents and attestation, mainland vs free zone branches, real costs, corporate tax, and the 2024 reforms that removed the local service agent and bank guarantee.
A branch is often the fastest way for an established company to start trading in the UAE. You keep your brand, your track record and your group structure. But branches follow a strict registration order, and one missed step can mean penalties or a restart. After guiding many international firms through business setup in Dubai, here is what actually matters.
What Is a Branch Office in Dubai?
A branch office is an extension of an existing company. It is not a separate legal entity, so the parent company owns 100% of it and is fully liable for its obligations. A branch can:
- Sign contracts and invoice clients in the UAE
- Hire staff and sponsor visas
- Bid for tenders and work with government entities (mainland branches)
- Open a UAE corporate bank account
A branch must carry out the same activities as its parent company. It cannot add unrelated activities.
Branch vs Subsidiary vs Representative Office
| Feature | Branch Office | Subsidiary (LLC or FZ-LLC) | Representative or Liaison Office |
| Separate legal entity | No | Yes | No |
| Can generate revenue | Yes | Yes | No |
| Liability | Parent fully liable | Limited to the subsidiary | Parent fully liable |
| Activities | Same as parent | Can differ from parent | Promotion and market research only |
| Audited accounts | Yes, annually | Yes | Usually not required |
| Best for | Established firms extending their brand | Long-term growth, ring-fenced risk | Testing the market before trading |
Choose a branch if you want to trade under your parent’s name quickly. Choose a subsidiary if you want limited liability or different activities. See our mainland company formation service for LLC setup. Choose a representative office if you only need a presence for marketing and relationship building.
Types of Branches You Can Open in the UAE
- Branch of a foreign company: a non-UAE company opening in Dubai mainland or a free zone
- Branch of a UAE company: a mainland company opening in another emirate, such as a Dubai company branching into Abu Dhabi or Sharjah
- Branch of a free zone company on the mainland: lets a free zone business trade directly with the local market
- Free zone branch of a foreign company: registered with a free zone authority such as DMCC, IFZA or JAFZA
If you are expanding into Sharjah, compare our mainland company formation in Sharjah guide. For Abu Dhabi, see business setup in Abu Dhabi mainland.
The 2024 Reforms: What Changed
Under Ministerial Resolution No. 138 of 2024 issued by the Ministry of Economy and Tourism, two long-standing requirements for foreign company branches were removed:
- No local service agent: foreign company branches no longer need to appoint a UAE national service agent
- No AED 50,000 bank guarantee: the deposit previously lodged with the Ministry is no longer required
Other key rules under the new regime:
- Registration with the Ministry is done through its electronic platform
- The registration certificate is valid for one year and renewed annually
- Branches must file audited financial statements every year; representative offices usually do not
- Companies can suspend a registration for up to three consecutive years without losing it
Many older guides still list the service agent and bank guarantee. They are outdated.
Mainland Branch Registration Process in Dubai
The order below matters. Doing steps out of sequence leads to rejection.
- Prepare and attest parent documents in the home country.
- Reserve the trade name with DET. The name normally matches the parent, followed by “Branch” or similar.
- Apply for Ministry of Economy and Tourism approval through the electronic platform.
- Appoint a branch manager through a board resolution and power of attorney.
- Secure a physical office and register the lease with Ejari. Virtual offices are not accepted for mainland branches.
- Obtain the trade license from the Department of Economy and Tourism.
- Complete final Ministry registration within one month of receiving the trade license.
- Get your establishment card, visas and bank account.
Timeline: Once documents are attested, the Dubai process usually takes three to six weeks. Attestation abroad can take four to five weeks on its own, so start early.
Consultant tip: Get your UAE auditor lined up before you apply. The Ministry expects an auditor acceptance letter for branches, and this small step catches many applicants out.
Our PRO services team manages every submission, from name reservation to final Ministry registration.
Documents Required to Open a Branch Office in Dubai
- Board resolution approving the branch and appointing the branch manager
- Certificate of incorporation of the parent company
- Memorandum and articles of association of the parent company
- Certificate of good standing
- Latest audited financial statements of the parent company
- Power of attorney for the branch manager
- Passport, visa and photo of the branch manager
- Auditor acceptance letter from a UAE-licensed audit firm
- Office lease and Ejari (mainland)
Attestation and translation: Parent documents must be notarised in the home country, then legalised either by apostille (for Hague Convention countries) or through the UAE embassy, followed by UAE Ministry of Foreign Affairs attestation where needed. Key documents must be translated into Arabic by a legal translator approved by the UAE Ministry of Justice.
Mainland vs Free Zone Branch
| Factor | Mainland Branch | Free Zone Branch |
| Market access | Full UAE market and government tenders | Free zone and international; mainland needs a distributor or extra permit |
| Registering authority | Ministry of Economy and Tourism plus DET | Free zone authority |
| Office | Physical office required | Flexi-desk options in many zones |
| Cost | Higher | Usually lower |
| Corporate tax | Standard rules | May qualify for free zone treatment if conditions are met |
Choose mainland if you will serve UAE clients directly. Choose a free zone branch if the Dubai office will handle regional coordination or international clients. Popular choices include DMCC, IFZA and JAFZA. Compare all zones in our free zone business setup guide.
Cost of Setting Up a Branch Office in Dubai
| Cost Item | Indicative Amount (AED) |
| Trade name reservation | 620 to 1,000 |
| Ministry of Economy registration and approvals | A few thousand, depending on activity |
| DET trade license (mainland) | 10,000 to 30,000 a year |
| Office lease (mainland) | 40,000 to 150,000 a year |
| Document attestation and Arabic translation | 3,000 to 8,000 |
| Free zone branch license | 15,000 to 25,000 a year |
| Free zone office | 15,000 to 75,000 a year |
| Visa per employee | 4,000 to 6,000 |
| Annual audit | 5,000 to 15,000 |
Typical first-year total: – Mainland branch: AED 60,000 to 120,000+ – Free zone branch: AED 40,000 to 80,000
Compared with older budgets, you now save the AED 50,000 bank guarantee and annual service agent fees. Get a quick estimate with our business setup cost calculator.
Corporate Tax, VAT and Compliance for Branches
- Corporate tax: A foreign company’s UAE branch is usually treated as a permanent establishment and is taxed at 9% on profits above AED 375,000 attributable to the branch. Register with the Federal Tax Authority and file annual returns.
- Double tax treaties: The UAE has an extensive treaty network, which can help avoid double taxation between the branch and parent.
- VAT: Register once taxable supplies exceed AED 375,000.
- Audit: File audited branch accounts every year.
- UBO: Keep beneficial ownership records current. See our UAE UBO registration
- Renewal: Renew your trade license and Ministry registration annually.
Our accounting services and VAT consultants keep branches compliant.
Setting Up an Indian Company Branch in Dubai
Indian companies are among the most frequent branch applicants. Practical points:
- India is a Hague Apostille country, so apostilled documents are usually accepted
- The India-UAE double tax treaty can reduce double taxation on branch profits
- Parent companies should check Indian foreign investment rules on overseas branches
- Many Indian firms choose a free zone branch first, then add a mainland presence as they grow
Representative Office Setup in the UAE
A representative or liaison office is the right choice when you want a UAE presence without trading. It can:
- Promote the parent company’s products and services
- Conduct market research and build relationships
- Coordinate with local partners
It cannot sign sales contracts, invoice clients or earn revenue. The registration route is similar to a branch but with fewer financial filings.
Opening a Bank Account for a Branch
Banks will ask for the parent company’s documents, UBO details, the branch license and Ministry registration, plus a clear explanation of expected transactions. We support corporate bank account opening for branches of international companies.
Common Mistakes to Avoid
- Applying to DET before Ministry approval
- Missing the one-month final Ministry registration deadline
- Using uncertified Arabic translations
- Choosing a branch when you need different activities from the parent
- Relying on outdated guides that still require a service agent or bank guarantee
Frequently Asked Questions
How much does it cost to set up a branch office in Dubai?
A mainland branch usually costs AED 60,000 to 120,000+ in the first year. A free zone branch typically costs AED 40,000 to 80,000.
Do I still need a local service agent for a branch in Dubai?
No. Ministerial Resolution No. 138 of 2024 removed the local service agent requirement and the AED 50,000 bank guarantee.
How long does it take to open a branch office in Dubai?
Usually three to six weeks in Dubai once documents are attested. Attestation abroad can add four to five weeks.
Can a branch office do different activities from its parent?
No. A branch must mirror the parent company’s activities. Different activities need a subsidiary.
What is the difference between a branch and a representative office?
A branch can trade and earn revenue. A representative office can only promote and research the market.
Is a branch in Dubai subject to corporate tax?
Yes. Branch profits attributable to the UAE are generally taxed at 9% above AED 375,000.
Can a Dubai company open a branch in another emirate?
Yes. UAE mainland companies can open branches in other emirates by obtaining a license from the local authority there.
Open Your Branch Office in Dubai with DIAC
DIAC handles your branch from document attestation and Ministry approval to DET licensing, final registration, visas, bank account and tax compliance. Book a free consultation for an exact branch setup quote.
About the Author
Adil Ahmad is a senior business setup consultant at DIAC. He advises international companies on branch office registration, representative offices and subsidiaries across Dubai mainland, free zones and other emirates.
