Branch Office in Abu Dhabi, Foreign Company Branch in Abu Dhabi
Foreign Company can retain 100 percent foreign ownership in the United Arab Emirates by opening a branch office. Setting up a branch office of the foreign company in Abu Dhabi is easy and an attractive prospect for clients is that it can be 100% foreign owned, provided a local national service agent (like Plus UAE) is appointed. A branch office, is an extension of a foreign parent company registered outside of the UAE, it is a full-fledged business, permitted to perform business activities as specified in its license. A Foreign Branch office may only be engaged in activities similar to those of its parent company.
Under Commercial Companies Act No 8 of 1984 and Ministerial Decision Number 69 of 1989, a Branch office of a foreign company does not have a separate entity. It clearly represents the parent company and carries on business under its name. The purpose of the branch office is to promote and market the products of the parent company. A Branch Company is not allowed to do any activities which parent company does not perform.
More Information about Foreign Branches:
- Activities – as a branch office, you are entitled to undertake the commercial activities of your parent company, although some activities are restricted (for example Trading, you would be required to set up as an LLC).
- Liability and tax – the branch office is not a separate legal entity and therefore the foreign parent company is 100% liable for the actions of the branch and the revenue of the branch will be taxable (in the country where the relevant foreign parent is resident)
- Sponsor/National Service Agent – each foreign branch office requires a local sponsor. The local sponsor has no equity participation or liability to the business, nor can the person represent the branch office or participate in its management.
- Bank Guarantee – As a Foreign Branch Office you will be required to deposit a refundable bank guarantee of AED50,000 for the duration of your license and this cannot be withdrawn or used as working capital.
- All documents of parent company should be translated into Arabic by a legal translator and duly certified by the Ministry of Foreign Affairs and Ministry of Justice, for companies incorporated abroad.
Advantages of Plus UAE being you National Service Agent :
- Efficient Local Sponsor: We will provide eligible local sponsor/partner for your business license only on FIXED annual sponsorship fee. Does not required profit share or any royalty.
- Money Saving: We guarantee a considerable reduction in the cost of your Document Processing and Clearing.
- Time Saving: Enabling you to devote more time to your core wealth creation activities.
- Dedicated Consultant: One point of contact for all services
- Renewal Reminder Service: Our computerized client database system stores all essential information including all renewal dates for your licenses, visas, and registrations. We act for you on time and avoid you incurring any penalties.
- Hassle Free Service: All your document processing is hassle free.
- Growth Partner: As a part of an international conglomerate we always have considerable resources at our disposal. We are able to match resources required to maintain quality of service you expect even when your business is growing at supersonic pace.
- Transparent Service: You get detailed breakdown and receipts of all Government charges and expenses.
Estimate for Branch formation:
- Cost for setup is AED 15,000 to 25,000 (Approx. for Departmental fee – may vary according to activities)
- Office can be arranged with minimum requirements with starting rent of AED 15,000/- (Space requirement from Department will be based on activity) or Virtual office.
- Ministry Of Economy : AED 16,000/-
- Bank Guarantee : AED 50,000/-
Documents Required for Foreign Branch:
- Company license copy
- Certificate of Incorporation
- Board Of Resolution
- Power Of Attorney for appointed manager
- Passport copy of Manager
- Letter from local Auditor to undertake branch auditing.
- Financial Obligation.
marketing@plusuae.com
Tel: +971 2 4919050