By Adil Ahmad, Business Setup Consultant at Gulf Corporate Services
Summary
To open a branch office in Dubai, a foreign or UAE company registers a branch on the mainland with the Department of Economy and Tourism (DET) and the Ministry of Economy, or in a free zone such as JAFZA or DMCC. The branch carries the parent’s name and activities, with no share capital. Setup usually costs AED 35,000 to 120,000. This guide covers types, costs, steps and FAQs.
What Is a Branch Office in Dubai?
A branch office is an extension of an existing company. It is not a separate legal entity. The branch uses the parent company’s name, carries out the same activities and the parent remains fully liable for its debts and obligations.
Companies use a branch setup in Dubai to:
- Enter the UAE market without forming a new company
- Keep full control, with 100% ownership by the parent
- Serve UAE and GCC clients with a local presence and staff
- Bid for projects that need a local licence
- Repatriate profits to the parent freely
A branch suits established companies that want a direct presence under their own brand.
Branch vs Subsidiary vs Representative Office
| Feature | Branch Office | Subsidiary (LLC or FZCO) | Representative Office |
|---|---|---|---|
| Legal entity | No, part of the parent | Yes, separate company | No |
| Liability | Parent fully liable | Limited to share capital | Parent liable |
| Name | Parent’s exact name | Can choose a new name | Parent’s name |
| Activities | Same as parent | Can choose new activities | Marketing and liaison only |
| Can earn revenue | Yes | Yes | No |
| Share capital | Not required | Depends on jurisdiction | Not required |
| Best for | Established companies expanding | Long term independent operations | Market research and promotion |
If you want limited liability or a new brand, read our guide on how to set up a subsidiary company in the UAE.
Representative Office in Dubai
A representative or liaison office promotes the parent company, studies the market and connects with clients, but cannot sign contracts or earn income in the UAE. The procedures for opening a representative office in the UAE are similar to a branch, with lighter activity scope. Choose a branch if you plan to invoice UAE clients.
Types of Branch Offices in Dubai
Branch of a Foreign Company
The most common type. A company incorporated outside the UAE opens a branch on the Dubai mainland or in a free zone. Most authorities expect the parent to have been operating for at least one to two years, with audited accounts.
Branch of a Local UAE Company
A company already licensed in Dubai or another emirate can open a branch in Dubai, often for a new location. A branch of a local company in Dubai is usually faster, because documents do not need foreign attestation.
Branch of a GCC Company
Companies from other GCC states can open UAE branches under GCC rules, often with simpler requirements. Groups expanding the other way can read about a GCC national branch company in Saudi Arabia.
Free Zone Branch
A free zone company can open a branch in another free zone, or on the mainland. Under Dubai Executive Council Resolution No. 11 of 2025, free zone companies can also apply for a DET permit to operate on the mainland. Read about how to transfer a free zone company to the mainland.
Mainland vs Free Zone Branch Office
Mainland branches are licensed by the Department of Economy and Tourism (DET), while free zone branches are licensed by each free zone authority.
| Factor | Mainland Branch (DET) | Free Zone Branch |
|---|---|---|
| Trade anywhere in the UAE | Yes | Mainly within the zone and abroad |
| Government contracts | Yes | Limited |
| Office | Physical office with Ejari | Flexi desk to warehouse |
| Approvals | DET and Ministry of Economy | Free zone authority |
| Typical cost | Higher | Lower to medium |
| Best for | Companies serving UAE clients directly | Trading, logistics and regional hubs |
Popular free zones for branches include JAFZA, DMCC and DIFC for financial firms. Compare JAFZA company formation and our free zone company setup guide. For mainland options, see mainland company formation in Dubai and the full list of mainland licences.
Requirements for a Branch Office in Dubai
- Same activities as the parent: a branch can only carry out activities that the parent is licensed for. Check our guide to mainland activities
- Parent’s name: the branch must use the parent’s exact legal name, usually followed by “Branch”
- A branch manager appointed by power of attorney
- A registered office in Dubai with a valid tenancy contract
- Attested parent documents for foreign companies
- Registration with the UAE Ministry of Economy for foreign company branches on the mainland
Local Service Agent and Bank Guarantee
Older rules required mainland branches of foreign companies to appoint a UAE national as local service agent and to provide a bank guarantee. Recent reforms have relaxed these requirements for many activities, but practice still varies by activity and authority. Confirm the current position with DET before you sign any agent agreement. Read about local corporate sponsor arrangements for background.
How to Open a Branch Office in Dubai: Step by Step
- Pass a board resolution at the parent company approving the Dubai branch.
- Attest the parent’s documents in the home country and in the UAE.
- Choose mainland or free zone and confirm the activities.
- Reserve the trade name and apply for initial approval.
- Get Ministry of Economy approval for a foreign company branch on the mainland.
- Lease an office and register the Ejari.
- Appoint the branch manager by power of attorney.
- Collect the trade licence from DET or the free zone.
- Register with the Dubai Chamber and get the establishment card.
- Open a corporate bank account and apply for visas.
The licence often takes three to six weeks once documents are ready. Attestation of foreign documents can add two to four weeks, so start it first.
Documents Required
- Parent’s certificate of incorporation and memorandum and articles, attested
- Board resolution to open the branch and appoint the manager
- Power of attorney for the branch manager
- Audited financial statements of the parent, usually for the last one to two years
- Certificate of good standing, where available
- Passport copy of the branch manager
- Tenancy contract and Ejari
All foreign documents need notarisation, home country authentication, UAE embassy legalisation and attestation by the UAE Ministry of Foreign Affairs, plus Arabic translation. Our document attestation in the UAE guide explains each step.
Cost of Setting Up a Branch Office in Dubai
The figures below are approximate market estimates from recent client projects. Always confirm current fees with DET or the free zone.
| Cost Item | Approximate Cost (AED) |
|---|---|
| Trade name and initial approval | 700 to 2,500 |
| DET trade licence | 10,000 to 20,000 per year |
| Ministry of Economy registration (foreign branch) | 5,000 to 10,000 |
| Office rent with Ejari | 15,000 to 100,000+ per year |
| Attestation, notarisation and translation | 3,000 to 10,000 |
| Chamber of Commerce membership | 1,000 to 3,000 |
| Establishment card | 2,000 to 4,000 |
| Visa per employee | 4,000 to 7,000 |
| Typical mainland branch, first year | About 45,000 to 120,000 |
| Typical free zone branch, first year | About 35,000 to 80,000 |
Renewal is usually cheaper than year one. For more detail, see the Dubai mainland company formation cost guide and the cost of obtaining a trade license in Dubai.
Opening a Branch in Other Emirates
The same model works across the UAE. You can set up a branch of a foreign company in Sharjah, Abu Dhabi or the Northern Emirates through their economic departments or free zones. If you already have a Dubai company, opening a branch in another emirate is often the fastest way to serve clients there. The UAE Government’s guide to starting a business lists the licensing bodies in each emirate.
Corporate Tax and VAT for Branch Offices
- Corporate tax: a UAE branch is taxed at 9% on its taxable profit above AED 375,000. Branches of foreign companies are treated as a permanent establishment of the parent and must register with the Federal Tax Authority. See our corporate tax services.
- VAT: registration is mandatory once taxable supplies pass AED 375,000 a year, at the standard rate of 5%. Ask our VAT and tax consultancy team.
Ongoing Compliance
- Renew the trade licence and Ministry of Economy registration each year
- Keep accounting records and file corporate tax returns
- Submit audited accounts where required
- Update the UBO register and parent company changes
- Keep visas, labour contracts and the Ejari valid
The UAE Commercial Companies Law sets the framework for branches and their parent companies.
Common Mistakes to Avoid
- Adding activities the parent does not hold
- Starting attestation too late
- Choosing a branch when limited liability matters more
- Assuming the branch is tax free
- Missing Ministry of Economy renewals
Expert Tip From Our Consultants
Decide early between a branch and a subsidiary. A branch is quick and simple if your parent is strong and well known, because banks and clients trust the parent’s history. If you need liability protection, local investors or a separate brand, an LLC or free zone subsidiary is usually the better choice. Companies also eyeing the Kingdom can read how to open a branch of an international company in Saudi Arabia.
Frequently Asked Questions
How much does it cost to set up a branch office in Dubai?
Usually AED 45,000 to 120,000 for a mainland branch in year one, and AED 35,000 to 80,000 in a free zone.
Can a foreign company open a branch in Dubai?
Yes, on the mainland with DET and Ministry of Economy approval, or in a free zone.
Does a branch office in Dubai need a local service agent?
Older rules required one for foreign branches. Recent reforms have relaxed this for many activities, so confirm with DET.
How long does it take to open a branch office in Dubai?
Around three to six weeks after attestation is complete.
What is the difference between a branch and a subsidiary?
A branch is part of the parent, which stays fully liable. A subsidiary is a separate company with limited liability.
Can a branch office do business across the UAE?
A mainland branch can. A free zone branch mainly trades within its zone and abroad, unless it has a mainland permit.
Can I open a representative office in Dubai?
Yes, but it can only market and liaise. It cannot earn revenue in the UAE.
Is a branch office in Dubai subject to corporate tax?
Yes. Profits above AED 375,000 are taxed at 9%.
Open Your Branch Office in Dubai With Expert Support
Gulf Corporate Services helps foreign and UAE companies open branch offices, from attestation and DET approvals to Ministry of Economy registration, visas and banking. Explore our business setup in Dubai services, or speak to our business setup consultants for a free cost estimate.
