Branch Office
Branch of a company is an extension or the additional presence of the parent company where the company can operate with the same name and carry out the same line of activities. The parent company can also establish the branch for the purpose of representation of their company in other locations as well.
In UAE, the branch of Indian Company can be established in two jurisdictions; namely, Mainland and Free Zone. In this article, we will discuss- “How to open a Branch Office in UAE” or more simply the formalities, approvals and requirements to establish the Foreign Branch in UAE Mainland and Free Zone.
Indian Branch Office Registration in UAE Mainland
Establishing the branch of Indian Company in Mainland is a complex process which requires drafting and authentication of legal documents at the country of origin. A local agent needs to be appointed to open the Indian Branch in the mainland; however 100% ownership of the company shall be retained by the parent company.
A service agent’s responsibility is to render labor and immigration services for the company. They hold no financial liabilities or obligations related to the company inside and outside the Emirate. In UAE mainland, the branch of Indian Company can be established as:
An Indian Company can establish its Branch in the UAE Mainland where the office here can operate the same activities of the Parent Company, however, Indian branches in the mainland are not permitted to perform commercial and industrial activities
An Indian company can also establish its Branch in the UAE Mainland as a Representative office. The main objective of setting up a Rep Office is to act as a marketing and communication office in the Middle East. Under this setup, the branch office cannot commercially trade or sign contracts in UAE.
Steps to establish branch of Indian Company in UAE Mainland:
- Authentication of corporate documents of the Parent Company
- The Department of Economic Development will verify the documents and issue Initial approval certificate. the name of the company can also be registered as per the DED guideline
- Immigration approval for the signatory
- Drafting and Notarizing Local Service Agent Contract Agreement
- Bank Account Opening
- Registration at the Ministry of Economy
- Special Approval from External Authorities Might Be Required Depending on the Business Activities
- Registration of Office Tenancy Contract (Tawtheeq for Abu Dhabi and Ejari for Dubai)
- After the Successful Submission of All Documents, DED Will Issue The License
- E- channel Registration
- Applying for E- signature Card
- Opening Labor and Immigration file
- Applying for the Quota and Initiating Visa Process
Indian Branch Office Registration in UAE Free Zone:
The process of Indian branch registration in the UAE Free Zone is hassle-free; the registration process might take between 3 days to 30 days based on the Free Zone jurisdiction and the line of business.
How Xcellence Group helps Indian businesses establish Branch Office in UAE Mainland or Free Zone:
- Xcellence Group handles all the necessary paperwork to establish your business in a timely manner. This includes applying for visas, licenses, obtaining labor quotas, translation services and assisting with the opening of corporate bank accounts
- The branch retains 100% Management Control and 100% Financial Control
- Full Management Team on hand 24/7
- Suitable for entrepreneurs, SMEs and MNCs entering the UAE market
- Transparent and reliable, keeping you fully informed
