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Discussion on Branch Companies

Brach Office:

Definition: A smaller, remotely located office that is separate from a company's corporate head quarters, Which can carry out Similar Business Activities.

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Branch Companies in Dubai

1. Branch of a Foreign Company2. Branch of a Local Company

Branch of a Foreign CompanyA Dubai branch company is a popular way for international companies to access the booming local Dubai economy.Advantages:-100% OwnershipSimilar Business Activity Similar Trade NameFacilitates the Financial Transaction EasilyBetter control on Expenses

Branch of a Foreign Company

Disadvantages

Increased expenses for the Incorporation(Documentation / translation/ Attestation etc)Requirement of a Local Service AgentRegistration with Ministry of EconomyInitial Deposit ( Bank Guarantee) & Annual fees to the Ministry Incorporation is Challenging

Documents- Parent Company1. Passport Copy of the Director2. Certificate of Incorporation3. Copy of License4. Auditors Report5. MOA6. POA for Director7. Board Resolution8. Proof Of Projects CompletedNOTE: All documents of the Parent Company must

be attested by UAE Embassy in the Country of Origin.

Branch Companies in

Dubai

Local Service Agent

• Documents required from the LSA

• Passport Copy• Jincia• Emirates ID• E Signature Card Copy• Photo

Branch Companies in

DubaiPhase -1

• Legal Translation• Attestation from Ministry of Justice

• Attestation from Ministry of Foreign Affairs

Phase -2

•Trade Name Reservation ( DED) – Online•Ministry of Economy Application•Ministry Approval – AED 5000•Initial Approval ( Activity ) DED

Branch Companies in

Dubai

Branch Companies in

DubaiPhase -3

•Local Service Agent Agreement•Tenancy Contract

Documents Required•Initial Approvals ( DED & MoE)•All Translated Documents attested by Ministry of Justice & Foreign Affairs•Court Fees

Phase – 4Tenancy Contract Approval from Land Dept & MunicipalitySubmit all the Documents to DED for getting the License.Collect the Payment Voucher from DEDMake Payment and obtain the License.Update Telephone & PO Box No.Register with Chamber of Commerce Prepare the immigration & Labor Card.

Branch Companies in Dubai

Phase -5Submit the Bank Guarantee undertaking for AED 50,000 to Ministry of EconomyPay the Registration Fees of AED 10,000 to Ministry of Economy & Obtain the Registration Certificate.( Fees to be paid through E Dhs Card only)

Branch Companies in

Dubai

Cost Break -Up

• Initial Approval & Trade name- AED 320• Fees to DED – 15000 – 18000 ( Approx) • Market Fees – 5% of the Office Rent• Court Fees – AED 1000 ( Approx)• Attestation Charges ( MOFA) – AED 2050 per document• Attestation Charges ( MOJ) – AED 50 per Doc• Legal Translation Charges – AED 100 per page• Ministry of Economy – AED 15000• Bank Guarantee Deposit – AED 50000• Post Box – AED 570• Company Stamp – AED 100• License Amendment DED – AED 560• Immigration & Labor Card – AED 3500

Sumesh Paul Meledath