Open a Branch Office in Dubai – Complete Business Setup Guide

Introduction

Many global entrepreneurs choose to open a branch office in Dubai to expand their operations into one of the world’s most dynamic business hubs. Dubai offers a strategic location, modern infrastructure, and investor-friendly policies that make it ideal for international growth. Establishing a branch allows foreign companies to operate legally in the UAE while maintaining full ownership and brand identity.

This guide explains everything you need to know to successfully open a branch office in Dubai, including the process, documents required, benefits, and key legal considerations.

What is a Branch Office in Dubai?

A branch office in Dubai is an extension of a foreign parent company that operates under the same name and conducts similar business activities. Unlike a subsidiary, a branch is not a separate legal entity — it represents the main company and must follow UAE commercial laws and regulations.

When you open a branch office in Dubai, it acts as a registered representative of your main company and can perform commercial activities, sign contracts, and generate profits.

Key Benefits of Opening a Branch Office in Dubai

When you open a branch office in Dubai, you unlock several business advantages:

1. 100% Foreign Ownership – The parent company retains full control of the branch operations.

2. Access to UAE and GCC Markets – A branch enables smooth expansion into the Middle East.

3. Tax Efficiency – Dubai offers a competitive tax environment for foreign businesses.

4. Brand Continuity – Operate under your existing company name and maintain global branding.

5. No Minimum Capital Requirement – Unlike other business types, there is no capital condition to open a branch office in Dubai.

6. Strategic Location – Dubai’s global connectivity supports business scalability and logistics.

Legal Requirements to Open a Branch Office in Dubai

To open a branch office in Dubai, companies must comply with UAE’s Commercial Companies Law (CCL) and secure the necessary licenses from the Department of Economy and Tourism (DET).

The main requirements include:

• Appointment of a Local Service Agent (LSA) for administrative purposes.

• Submission of parent company documents (Memorandum, Certificate of Incorporation, etc.).

• Approval from the Ministry of Economy (MoE).

• Office space lease agreement in Dubai.

All foreign documents must be notarized and attested by the UAE Embassy in the parent country.

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

Step 1: Obtain Initial Approval

Apply to the Ministry of Economy (MoE) for permission to open a branch office in Dubai. Provide the parent company’s business license, memorandum, and a statement of intent.

Step 2: Secure Approval from the Department of Economy and Tourism (DET)

After MoE approval, obtain a commercial license from the DET Dubai to operate legally.

Step 3: Appoint a Local Service Agent

A UAE national or local company acts as your Local Service Agent (LSA) to facilitate government communication — though they hold no ownership rights.

Step 4: Lease an Office Space

You must have a physical address to open a branch office in Dubai, as required by UAE regulations.

Step 5: Register with the Chamber of Commerce

Complete registration with the Dubai Chamber of Commerce for trade and compliance purposes.

Step 6: Apply for Visas and Bank Account

Once the license is issued, apply for employee and investor visas, and open a UAE corporate bank account.

Documents Required to Open a Branch Office in Dubai

To successfully open a branch office in Dubai, you need to submit:

• Parent company’s Certificate of Incorporation

• Memorandum & Articles of Association (attested)

• Board Resolution authorizing the branch setup

• Passport copies of directors and manager

• UAE Local Service Agent agreement

• Office lease or Ejari certificate

• Proof of financial solvency

Cost of Opening a Branch Office in Dubai

The total cost to open a branch office in Dubai typically ranges from AED 50,000 to AED 100,000, depending on business activity, location, and licensing requirements. This includes registration, approvals, and documentation fees.

Free Zone vs Mainland Branch Office

If you plan to open a branch office in Dubai, you can choose between:

• Mainland Branch Office: Operates under DET, ideal for trading within the UAE market.

• Free Zone Branch Office: Operates under a specific free zone authority, offering tax benefits and 100% ownership for foreign investors.

Both options have unique advantages, depending on your business goals.

Why Choose Dubai for Your Branch Office?

Dubai’s pro-business ecosystem, political stability, and robust infrastructure make it one of the best destinations for international expansion. When you open a branch office in Dubai, you gain access to modern logistics, a multicultural workforce, and supportive government policies that encourage foreign investment.

FAQs – Open a Branch Office in Dubai

1. What is the process to open a branch office in Dubai?
To open a branch office in Dubai, a foreign company must obtain approval from the Ministry of Economy (MoE), secure a license from the Department of Economy and Tourism (DET), appoint a Local Service Agent, and lease an office space.

2. Can a foreign company own 100% of its branch office in Dubai?
Yes. When you open a branch office in Dubai, the parent company retains 100% ownership. However, a UAE national must act as a Local Service Agent (LSA) for administrative purposes.

3. What activities can a branch office in Dubai perform?
A Dubai branch office can conduct commercial activities similar to those of its parent company, including sales, marketing, contracting, and service operations under the same trade name.

4. How long does it take to open a branch office in Dubai?
Typically, it takes 4 to 8 weeks to open a branch office in Dubai, depending on document preparation, attestations, and approval timelines from government authorities.

5. What documents are needed to open a branch office in Dubai?
You need attested copies of the parent company’s Certificate of Incorporation, Memorandum of Association, Board Resolution, manager’s passport, and the Local Service Agent agreement.

6. What is the cost of setting up a branch office in Dubai?
The cost to open a branch office in Dubai ranges from AED 50,000 to AED 100,000, depending on the nature of the business, location, and licensing requirements.

7. Can a branch office in Dubai sign contracts and generate revenue?Yes. A branch office in Dubai is legally allowed to sign contracts, invoice clients, and generate revenue under the supervision of its parent company.

8. What is the difference between a branch office and a representative office in Dubai?
A branch office can engage in commercial activities and earn revenue, while a representative office is limited to promoting the parent company’s products or services without direct sales.

9. Do free zone companies need approval to open a branch in mainland Dubai?
Yes. If a free zone company wishes to open a branch office in mainland Dubai, it must obtain permission from both the free zone authority and the Department of Economy and Tourism (DET).

10. Why should companies open a branch office in Dubai?
Companies choose to open a branch office in Dubai for 100% ownership, tax advantages, access to global markets, and the opportunity to expand business in the UAE’s thriving economy.

Conclusion

To open a branch office in Dubai is to take a decisive step toward global business growth. Dubai’s strategic location, investor-friendly regulations, and international connectivity make it an ideal destination for companies seeking regional expansion.

From 100% ownership to simplified registration processes, setting up a branch gives your business direct access to the thriving UAE market. By ensuring compliance with local laws and working with expert consultants, your company can achieve seamless registration, licensing, and operations.

At Global Strategic, we assist international companies to open a branch office in Dubai efficiently — handling documentation, approvals, and licensing with precision. With professional guidance, your expansion into Dubai can be smooth, compliant, and highly rewarding