The United Arab Emirates government aspires to ease the process for overseas companies to set up branches in the country. There are different forms of companies in Dubai. For fully-fledged Firms, one of the best ideas to operate in the UAE is to launch a branch company and extend their services to a broader market.
Currently, numerous top companies have embraced this path. Going by the latest statistics, two thousand, eight hundred and ninety-one firms had successfully opened their satellite branches by 2016. The trend positions Dubai as a hot base that any prospect should confidently give a shot.
What is a branch company in UAE, and of what benefit should you set up one? Let’s dive in:
A branch firm is a representation of a mother company established and registered under UAE company regulations. A parent company may install the infrastructure and grow their services in the country, maintaining the overall oversight. For enterprises who want to test the waters before commitment, opening a branch is an excellent idea.
Now let’s see the many benefits of setting up a branch Company in UAE;
- Convenient Tax System.
Branch companies establishing in Dubai enjoy an appetizing tax system from the authorities. All foreign Firms with this idea are charged a Zero percent tax rate on the revenue they earn. The mother Company retains all profits accumulated by the branch Firm. Except for overseas banks who service 20% on annual income, the rest enjoy the ride.
- Dubai’s Strategic Geographical Location.
Dubai is located at an easily accessible point. With an approximate four hours reach from Asia, Africa, and Europe, your company will be able to get many clients. UAE is centrally placed for any business to thrive and expand globally.
- Auditing And Administration Made Easy.
Establishing a subsidiary in Dubai is exceptionally easy and efficient, and fast. Within few days, you can install and run your company hustle-free. UAE administration won’t require you to process a separate finance function for your new sub-company. The concerned authorities only need to legally track the linked audit accounts between the mother and branch company and offer a final audit verdict.
- Cost Efficiency in Starting the Mini-Branch.
Launching and running a branch Firm in Dubai is an affordable channel to enter the state. Unlike other ventures, share capital is not a requirement when establishing a branch Company. All you require is to pay the standard charges and the regular deposits and applications for any standard processing. Such a package makes it cheap to have your presence in UAE.
- Operate Within WANA/ MENA Region
According to different economic analysts, countries within West Asia and North Africa are expected to face rapid economic growth soon. As such, UAE presents a perfect stable base centrally located in the reach of this region.
If establishing a branch company sounds an excellent idea to you, then underlining the variety of available business structures is critical. You can choose to set up your branch on the mainland or in one of the free zones.
Let’s examine the different types you may want to consider-
These include;
Branch Company: it’s the most common structure whereby the mother Firm remains the sole umbrella. Here, share capital is not required. Also, there is the corporate shareholder whereby the mother company and the mini branch have a share in the partnership. Additionally, there’s the representative office, which is quite affordable to operate. This entity only promotes and outsources services for the mother company. This type’s work is to fully outsource work for the umbrella without making profits and earning benefits.
If you plan to set up a company branch in the United Arab Emirates, several legal documents from the parent company will be required. The forms include a memorandum of association, an authorization document of incorporation, and a resolution for shareholders allowing the branch company to operate in Dubai. Finally, all enterprise documents for the parent Firm must be vetted and legalized by the UAE embassy.
Conclusion
Establishing your own branch Company has never been a walk in the park. Al Riyady Pro service in Dubai takes care of your worries. For more information about us, reach through-Email: info@alriyady.ae Telephone: +971 4 2449233 WhatsApp: +971 50 801 5910. Our dedicated group of professionals won’t disappoint.
