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.
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.
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 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:
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.
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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.
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.
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.