- July 28, 2020
- Posted by: DBS Editorial Team
- Categories: Company Formation in Dubai, Dubai Business Services
Setup a representative office in Dubai to expand and channelize your foreign company. Starting a representative office will not only provide you the geographical expansiveness but also offer economic upliftment.
Foreign entities setup a branch office in Dubai to act as a subsidiary for the parent company that is situated in abroad. Companies setup a branch office in Dubai mainly is to promote and market the products and services of the parent company into an international market. Setting up a representative office in Dubai also eases international transactions or channelizes revenue.
A branch office or a representative office in Dubai is ideal for companies interested in expanding their business operations in the UAE. A representative office is characterized by the fact that is a dependent structure to its parent company abroad. A foreign company in Dubai may start a representative office for multiple reasons. However, they need to adhere a process to effectively incorporate the representative office in Dubai.
So, how to setup a representative office in Dubai?
The process of setting a representative office in Dubai involves a few steps. Those are:
- Identifying A Local Agent,
- Reserving A Trade Name,
- Applying to The Ministry of Economy,
- Acquiring A Trade License from the DED
Setting up a representative office in Dubai also requires you to carry out the administrative tasks with the Department of Economic Development (DED). Moreover, you may also have to become a member of the Chamber of Commerce and Industry.
What are the requirements and costs involved to setup a representative office in Dubai?
Reliable Local Agent
Registration of a foreign company in Dubai or anywhere in the UAE requires a local agent. This is the primary requirement if you wish to setup a representative office in Dubai. It is mandated to have a UAE national as your local agent in Dubai UAE.
Trade Name Reservation
The Department of Economic Development (DED) is the governing body for all commercial entities in the UAE. The Department of Economic Development also reserves the right to approve the trade name for the foreign or parent company.
After submitting the passport copies of the investors, the parent company papers and preliminary documentation, the Department of Economic Development (DED) provides the initial approval to setup representative office in UAE.
Ministry of Economy (MOE)
To setup a representative office in Dubai an approval from the MOE is a must. An application is filled and submitted at the MOE counter describing the foreign company. The application must specific complete information about the foreign company. Such as address, business activity, allotment of shares, etc. The MOE may also request documented proof concerning the parent company.
After receiving the approval from the Ministry of Economy you can submit your application to the DED. Other PRO services and supplementary paperwork might be required while setting up the representative office. After all the documents are submitted the commercial license is issued by the DED.
Get free consultation from an expert before you setup a representative office in Dubai:
We at DBS Business Setup help you evaluate the various aspects of setting up a representative office in Dubai. Speak to an expert from DBS Business Setup, click here https://www.dubaibusinessservices.com/ to chat with our live associates and book your free consultation today!
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