Establishing a representative office in the United Arab Emirates for a foreign business or its parent company is a significant undertaking. A foreign business wishing to open a representative office in the United Arab Emirates may do so for a variety of reasons.
There are, however, certain criteria and restrictions to meet in order to establish a representative office in Dubai or anyplace else in the United Arab Emirates. Let us examine the criteria, the processes, and the costs associated with establishing a representative office in Dubai, United Arab Emirates.
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How can I set up a representative office in the United Arab Emirates? What are the prerequisites for establishing a representative office in your country?
The services of a reliable local agent are required for the registration of a branch or representative office for a foreign business in Dubai or anyplace else in the United Arab Emirates. This is the initial step in establishing a representative office in the United Arab Emirates. It is mandatory to have a citizen of the United Arab Emirates as your local service agent in Dubai, UAE.
Foreign or parent business trade name reservation is handled by the Department of Economic Development (DED) of the relevant UAE.
Following receipt of the investor’s original passport copies, the parent company’s legal documents, and other preliminary paperwork, the Department of Economic Development (DED) grants initial permission / pre-approval for the establishment of a representative office in the United Arab Emirates.
Economic Development (MOE) – The Ministry of Economy (MOE) is responsible for economic development. In addition, permission from the Ministry of Economy is needed in order to open a representative office in the United Arab Emirates. The Ministry of Economy in the UAE offers an application that must include information about the parent business or overseas subsidiary. The Ministry of Economy application requires information such as the location of the head office, the type of the company, the allocation of shares, and so on. A request for documentation from the Ministry of Economy about the parent business may also be made.
DED License – In order to continue with the process of establishing a representative office in the United Arab Emirates, the permission from the Ministry of Economy must be presented to the Department of Economic Development. In addition, depending on the type of the representative office, additional paperwork will be provided to the Department of Economic Development. The Department of Economic Development (DED) then issues the business licence.
As we’ve seen in each stage, documentation is essential to a successful project. Let’s have a look at the mandatory papers that must be submitted in order to establish a branch office in the United Arab Emirates.
What papers are needed for the establishment of a representative office in the United Arab Emirates?
The parent company’s or a foreign company’s information
The establishment of a representative in the United Arab Emirates provides many tax benefits. Furthermore, the establishment of a representative office will result in restricted tax obligations and a 0 percent corporation tax rate.
In order to open a representative office in the United Arab Emirates, no minimum share capital is needed.
Through a representative office in the United Arab Emirates, foreign businesses may benefit from significant international growth and worldwide contacts.
Establishing a representative office in the United Arab Emirates is simple, and the administrative procedure is expedited.
Below is the cost structure of establishing a representative office in UAE?
No.
Charges
Type of Fees
Period Covered
Amount
Initial Approval
Gov’t Fees
One time
AED 235
Name Approval
Gov’t Fees
One time
AED 735
Typing of MOA / LSA
Typing centre
One time
AED 500
Notarization of MOA / LSA
Gov’t Fees
One time
AED 875
Service Agent Fees + PRO services (due on the day of court agreement)
Sponsor or Service Agent
Every Year
AED 20000
License Fee
Gov’t. Fees
Every year
AED 6600
Rented Office
Depends on requirements
Depends on requirements
Depends on requirements
Market fees 2.5% of Premises annual rent to be paid to Economic Department.
Gov’t. Fees
Every Year
Variates
Arabic name free – Foreign name charges AED 2,000/
Gov’t. Fees
Every Year
AED 2000
Ministry of Economy fees
One Time
Every Year
AED 15000
Ministry of Economy REFUNDABLE DEPOSIT
One Time
Every Year
AED 50000
Immigration card fees
Gov’t Fees
Every 3 years
AED 760
Labour Card fees
Gov’t Fees
one time
AED 2700
Telephone + P.O. Box Update (Economic Dept.)
Gov’t. Fees
one time
AED 560
Company Rubber Stamp
SF
one time
AED 100
