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

Setting up a branch office in the UAE is one of the most reliable ways for foreign companies to expand their operations in the region while keeping complete ownership and brand identity intact. A branch office functions as an extension of the parent company, allowing the foreign business to operate, offer services, sign contracts, and generate revenue directly under its original name. This structure is ideal for companies looking to enter the UAE market without forming a new legal entity.

What Is a Branch Office in the UAE?

A branch office is not considered a separate legal entity; instead, it is legally connected to the foreign parent company. It operates under the same name and carries out the same activities approved by the authorities. It is allowed to earn profits, invoice clients, and engage in commercial operations while remaining fully owned and controlled by the foreign company. The parent company remains responsible for all liabilities of the branch.

Who Should Consider a Branch Office?

A branch office is most suitable for companies that want to expand into the UAE while maintaining full ownership and operational identity. It is a preferred model for sectors such as technology, consulting, engineering, financial services, media, and logistics. It is also ideal for businesses that want to maintain brand continuity, operate under one global name, and strengthen their presence in the Middle East and GCC region.

Benefits of Opening a Branch Office

Setting up a branch office provides several advantages, including the ability to maintain 100% foreign ownership, operate legally under the same name as the parent company, and access the UAE’s strong business environment. It supports easier banking procedures because the parent company stands as a guarantee, making banks more confident in opening accounts. It also allows companies to hire staff, apply for visas, and run full-scale operations in the UAE, which helps build long-term growth in the region.

Documents Required for a Branch Office

The UAE authorities require specific documents to approve a branch office license. These documents typically include the parent company’s trade license, certificate of incorporation, memorandum and articles of association, board resolution permitting the establishment of the UAE branch, and passport copies of the company directors. The UAE also requires a notarized and attested power of attorney for the branch manager. All documents issued abroad must be notarized and legalized before submission.

Step-by-Step Process to Set Up a Branch Office

The setup begins by choosing whether to open the branch in a mainland jurisdiction or a free zone. Mainland branches require approvals from the Department of Economic Development and the Ministry of Economy, while free zone branches are processed through the relevant free zone authority. After selecting the jurisdiction, the company must apply for initial approval, complete all required attestations, and finalize legal appointments such as the Local Service Agent for mainland branches. Once approvals are granted, the trade license is issued, and the company can proceed with opening a corporate bank account, renting office space, obtaining visas, and starting full operations.

Cost of Establishing a Branch Office

The cost of opening a branch office varies based on jurisdiction, business activity, office requirements, and visa allocations. Mainland setups generally involve Ministry of Economy fees, DED license fees, and attestation costs. Free zones have their own structured pricing. On average, companies can expect the overall cost to fall between AED 35,000 and AED 75,000 or more, depending on specific requirements.

Why Choose BizVisor for Branch Office Setup?

BizVisor offers complete support for branch office formation in the UAE. The team manages the entire process, including documentation, attestations, Ministry of Economy approvals, LSA arrangements for mainland branches, and corporate bank account assistance. BizVisor ensures a smooth setup experience from start to finish, allowing companies to focus on operations instead of administrative procedures.

Conclusion

Opening a branch office in the UAE is a strategic choice for foreign companies aiming to build a long-term presence in the region. It offers complete ownership, strong operational flexibility, and the ability to operate under an established global identity. With professional guidance, the setup process becomes straightforward and efficient, enabling businesses to enter the UAE market confidently.