Dubai: Representative office versus company

Take a moment to understand about each entity separately before we get into the specifics of how they vary from one another. A representative office and a corporate representation business are two different types of businesses.

Representative office and business representation are defined in this document.

Essentially, a representative office is a branch or extension of the company’s headquarters. It is a tiny division that is exclusively responsible for representing one business. All of its actions and outputs are performed on behalf of the headquarters and are designed to make the main office’s operations more efficient. Company representation enterprises, on the other hand, are agents who may market a variety of international companies on a local level. Furthermore, this service is accessible to both commercial companies and corporate entities of all sizes.

Apart from that, companies that specialise in corporate representation may also provide franchise models to worldwide chain organisations. They will, however, be required to acquire a franchise agreement from the federal government before proceeding. This legal agreement outlines the franchisor’s expectations as well as all of the operational elements of the business relationship.

Creating a representative office in Dubai is a good idea.

The procedure for establishing a representative office in Dubai, as well as the papers needed for the same, will be explained in more detail in the following section:

The procedure for establishing a branch office

The branch office may be either a professional sole-proprietorship or a commercial limited liability company, depending on the nature of the headquarter’s activity. The following items are included in the overlapping process for establishing a branch office with any of the corporate structures:

Obtaining authorization for the initials and the name
Payment of several government fees, such as the Tasheel fee, the licencing fee, and the annual fee are required.
Getting your ejari (tenancy contract) completed is important.
The process of getting TRA approval, LSA notarization, and a business stamp.
Paying foreign name registration fees
Documents needed for the establishment of a representative office

One and only establishment (Individual Shareholder)

Establishment in the commercial sector (Corporate Shareholder)
a photocopy of your passport
a photocopy of the manager’s passport
Copy of a visitor visa or a resident visa
Copy of a manager’s visit visa or a resident visa
Residents visa holders are required to get a No-Objection Certificate (NOC) from their employer/sponsor, as well as a copy of their Emirates Identification Card (EAD).
Residents visa holders are required to get a No-Objection Certificate (NOC) from their employer/sponsor, as well as a copy of their Emirates Identification Card (EAD).
Colored picture the size of a passport
Colored picture the size of a passport
Choices for a trade name or a business name (to check their availability)
Choices for a trade name or a business name (to check their availability)
The specifics of the activities of the business that will be established
The specifics of the activities of the business that will be established
Documents pertaining to the parent corporation –
Incorporation Certificate, Board of Resolution, Articles of Association, Share Certificate, and Memorandum of Association are all required documents.
Creating a company registration firm in Dubai is a simple process.

This section will describe the steps involved in establishing a company registration business in Dubai, as well as the papers needed for the procedure to be successful.

The procedure for becoming a business registration agent is as follows:

In accordance with the Department of Economic Development, this company is classified as a service provider. As a result, organisations representing foreign corporations in Dubai are obliged to get a professional licence from the government. Obtaining initial and name permissions; paying different government fees, such as the Tasheel fee, licencing fee, and annual fee; obtaining your ejari (tenancy contract); obtaining TRA approval, LSA notarisation, and business stamp; and paying international name fees are all part of the procedure (if any). Experienced company setup experts, on the other hand, will be able to provide the finest guidance.

Documentation is needed.

a photocopy of your passport
Copy of a visitor visa or a resident visa
Additional requirements for those who have a residence visa – It will be necessary to get a No Objection Certificate (NOC) from the employer/sponsor.

A colourful picture of the Emirates ID (passport size)

4. Alternatives for trade names and business names (to check their availability)

5. Specifics about the business that will be formed’s activities

Which is preferable: a representative office or a business representation agent? What is the difference between the two?

A common question for businesses looking to expand internationally is whether they should establish their own representative office in the target country or work with a corporate representation agency. The specialists that specialise in business formation advise that it is best to first choose a company representative agency and then evaluate the market. They may subsequently decide to open a branch office by obtaining the necessary licences to carry out their business.

Are you still deliberating your options? Consult with subject matter experts

Speaking with the company formation experts at Generis Global will help you figure out how to go about extending your business presence in the United Arab Emirates. These professionals will provide your choices and guide you through the whole procedure. Furthermore, they will provide an overview of the papers that will be needed for the establishment of your representative office as well as the establishment of a partnership with an outside business representation agent.