Two very different ways to land in the UAE. A new company is a fresh, separate legal entity with its own owners and limited liability; a branch is an extension of an existing parent, trading under the same name and legal identity. Here's how they really differ — and how to choose.
The differences that actually change your decision — not the fine print.
| New Company | Branch Office | |
|---|---|---|
| Legal status | A brand-new, separate legal entity | An extension of an existing parent — not separate |
| Liability | Limited to the company's own share capital | The parent is liable for the branch's obligations |
| Activities | Any licensed activity you register | Generally limited to the parent's activities |
| Share capital | Its own capital, owners and memorandum | No separate capital — funded by the parent |
| Ownership & partners | Easy to bring in local partners or investors | Wholly owned by the parent; no new shareholders |
| Brand & identity | A fresh identity you build from scratch | Trades under the parent's established name |
| Local agent | Not required for most activities | Not required — abolished for foreign branches |
| Best suited to | A fresh, independent venture | A parent extending into the UAE |
Choose a new company if you're starting an independent venture, want limited liability separated from your other interests, plan to bring in local partners, or need broad activity flexibility. Choose a branch if an existing company — foreign or UAE — wants a UAE presence under the same name and legal identity, doing the same work the parent already does.
The questions we hear most when founders and parent companies weigh the two.
Ask AgentBizNo. A branch is an extension of its parent company, not a separate entity. It shares the parent's legal identity, and the parent remains liable for the branch's obligations. A new company, by contrast, is its own entity with limited liability.
Generally no. A branch is usually limited to the activities of its parent, and in some cases can't carry out pure trading — it may be restricted to services or representation depending on the jurisdiction. A new company can register whatever licensed activities it needs.
No. Article 329 of the Commercial Companies Law, which required a national agent for a foreign branch, was repealed by Federal Decree-Law 26 of 2020, and Ministerial Resolution 138 of 2024 removed it procedurally too — along with the AED 50,000 bank guarantee that accompanied it. The Ministry of Economy publishes a page headed “No Requirement for National Agents”. There is no share capital and no local shareholder either. If you are being quoted an annual agent fee, it is for something the law no longer requires.
A new company. Because it has its own share capital and shareholders, you can bring in local partners or investors later. A branch is wholly tied to its parent and can't take on new shareholders of its own.
Often, yes. If you want a UAE presence under the same name and legal identity, doing the work your parent already does, a branch keeps everything under one entity. If you want independence, limited liability or local partners, a new company is usually the better route.
Two minutes with our advisor (or AgentBiz) and you'll know whether a new company or a branch office is right for you, and what it takes to set up.