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.
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
Certificate of incorporation or Trade License Resolution of the Board of Directors Attested
Articles of Association Memorandum of Association (MOA) Power of Attorney Attested Memorandum of Association (MOA) (AOA)
Agreement with a Local Agent (Notarised)
Government Approval Has Been Added
Copies of Investors’ Passports
What are the benefits of opening a representative office in the United Arab Emirates?
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.
The overall cost of establishing a representative office in the United Arab Emirates is quite cheap.
Unlike generic business setups, there is no restriction on the number of shareholders who may participate in the formation of a representative.
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?
| Business setup fees for representative office in Dubai | ||||
|
No. |
Charges |
Type of Fees |
Period Covered |
Amount |
| License and Service Agent cost in Dubai | ||||
| 1 |
Initial Approval |
Gov’t Fees |
One time |
AED 235 |
| 2 |
Name Approval |
Gov’t Fees |
One time |
AED 735 |
| 3 |
Typing of MOA / LSA |
Typing centre |
One time |
AED 500 |
| 4 |
Notarization of MOA / LSA |
Gov’t Fees |
One time |
AED 875 |
| 5 |
Service Agent Fees + PRO services (due on the day of court agreement) |
Sponsor or Service Agent |
Every Year |
AED 20000 |
| 6 |
License Fee |
Gov’t. Fees |
Every year |
AED 6600 |
| Added business setup fees for representative office in Dubai | ||||
| 7 |
Rented Office |
Depends on requirements |
Depends on requirements |
Depends on requirements |
| 8 |
Market fees 2.5% of Premises annual rent to be paid to Economic Department. |
Gov’t. Fees |
Every Year |
Variates |
| 9 |
Arabic name free – Foreign name charges AED 2,000/ |
Gov’t. Fees |
Every Year |
AED 2000 |
| 10 |
Ministry of Economy fees |
One Time |
Every Year |
AED 15000 |
| 11 |
Ministry of Economy REFUNDABLE DEPOSIT |
One Time |
Every Year |
AED 50000 |
| Fees in labour and immigration department | ||||
| 12 |
Immigration card fees |
Gov’t Fees |
Every 3 years |
AED 760 |
| 13 |
Labour Card fees |
Gov’t Fees |
one time |
AED 2700 |
| 14 |
Telephone + P.O. Box Update (Economic Dept.) |
Gov’t. Fees |
one time |
AED 560 |
| 15 |
Company Rubber Stamp |
SF |
one time |
AED 100 |