Telephone Numbers
Telephone Numbers
Opening a Branch in Dubai
For detailed information +90 542 381 3868 'Call.
Every corporate entity requires an efficient accounting system and various procedures. Following the establishment of a branch in Dubai, UAE, we provide professional accounting services for bookkeeping, cash flow management, taxation, cost control, budget control, and financial processes.
Every active business or organization must maintain accounting records to track income, expenses, assets, and liabilities in order to ensure compliant financial management. For branches established in Dubai, World Company Setup’s accounting team supports standard accounting practices that help generate profits and minimize losses by ensuring appropriate business policies.
A subsidiary is a separate legal entity owned and controlled by another company, referred to as the parent company. While the parent company holds majority ownership, the subsidiary operates independently and manages its own assets, liabilities, and business activities.
A branch and a subsidiary are both business entities owned by another company. However, branches are not separate legal entities and are considered extensions of the parent company.
Establishing subsidiaries plays a significant role in international expansion and enables businesses to:
Dubai is located at the crossroads of Asia, Europe, and Africa, offering easy access to key markets and major transportation routes.
Dubai, UAE actively encourages foreign investment.
With tax incentives for entrepreneurs, free zones, and streamlined regulatory processes, Dubai ranks among the most favorable regions in terms of tax efficiency and ease of doing business.
Dubai offers a stable political structure and economic environment, ensuring long-term growth prospects.
Full Control Over All Business Operations: The branch can independently manage all operations without the need for a local partner or sponsor.
Low Operating Costs: Dubai, UAE offers a highly competitive environment for branches with low tax rates, significantly reducing operating expenses.
Reputation, Credibility, and Prestige: Opening a branch in Dubai enhances your brand’s global credibility, as the city is recognized as a trusted international business hub.
The average license cost for opening a branch in Dubai generally starts from AED 25,500. However, the total cost may vary depending on several factors, including:
In addition to licensing costs, there are other expenses such as:
To learn the actual cost of establishing a subsidiary in Dubai, contact a World Company Setup business setup consultant.
All documents must be translated and apostilled by the Ministry of Foreign Affairs in the home country and the UAE consulate. The documents required to open your branch in Dubai, UAE include:
Opening a branch in a Dubai Free Zone offers specific advantages such as 100% foreign ownership and exemption from customs duties. However, free zone branches are permitted to operate only within the free zone, conduct B2B activities in the local market, and engage in international markets.
Opening a mainland branch in Dubai allows your branch to operate in the local market and across the UAE. Mainland branches in Dubai enable foreign companies to maintain full control over their operations without the need for a local sponsor.
After obtaining a trade license, you will need to open a corporate bank account in Dubai. Many banks require key documents such as your trade license, the parent company’s financial status, business plan, and certain parent company documents. The World Company Setup team assists you in selecting a bank that offers services tailored to your company’s needs and provides support throughout the execution process. After opening the branch, a Dubai bank account is essential to manage your operations and organize financial transactions. The bank account opening process may vary depending on your branch’s activity type, legal structure, and industry.
Bank Selection: Before opening a bank account in Dubai, it is important to choose a bank that best suits your industry and business needs. Dubai hosts many local and international banks. The most popular banks include Emirates NBD, Dubai Islamic Bank, Abu Dhabi Commercial Bank (ADCB), Standard Chartered Bank, and HSBC. When selecting a bank, it is advisable to consider factors such as account types, transaction fees, service quality, and customer support.
Required Documents: The following documents are generally required to open a bank account:
Company Registration Certificate: Issued by the Dubai Chamber of Commerce or relevant authorities.
Branch License and Approvals: Licenses obtained to legally operate the branch.
Parent Company Documents: Certificate of incorporation, activity certificates, financial reports, and other relevant documents of the parent company.
Manager or Representative Documents: Identification documents of the branch manager (passport copy, visa status, etc.).
Company Business Plan: Business plan and financial projections related to the company’s sector.
Office Address and Lease Agreement: The branch’s office address in Dubai and tenancy contract.
Application Process: The bank account application is submitted in accordance with the bank’s procedures for branch establishments. Initially, you must apply to the selected bank branch. After reviewing your application, the bank may request additional information regarding your company’s financial history, scope of activities, and commercial operations. During this process, the bank may conduct a detailed review of your company’s legal status in Dubai and the parent company’s background.
Account Opening and Approval Process: After submitting the application, the review and approval process conducted by banks may take several weeks. This duration may vary depending on the bank’s workload and the type of bank applied to. The bank may evaluate your branch’s financial background and activities before approving the account.
Account Management and Ongoing Updates: Once the bank account is opened, regular account management is essential. Banks in Dubai may request documents from companies to ensure ongoing monitoring of commercial accounts and tax compliance. It is important to carefully record all transactions related to your accounts and seek financial advisory support when necessary.
Work and Residence Visas for Branch Managers in Dubai
To obtain residence and work permits for the branch general manager in Dubai, the branch structure must first be established. The manager appointed by the parent company’s resolution is granted a UAE ID with a minimum validity of two years. By following the specified steps and ensuring compliance with local regulations, we provide consultancy support throughout all processes, strengthening your brand’s international presence.
Taxation Rates for Branch Companies in Dubai
As of July 1, 2023, a new corporate tax regime has been implemented in the United Arab Emirates (UAE), including Dubai. This new regime applies to all businesses operating in the UAE, including subsidiaries of foreign companies.
Under the new regulations, a corporate tax rate of 9% applies to taxable profits exceeding AED 375,000. This rate is fixed and does not increase as profits rise. However, certain exemptions and deductions are available that may reduce the effective tax rate for some businesses.
A key advantage of opening a branch in Dubai for foreign companies is the ability to benefit from the UAE’s double taxation treaties, thereby expanding access to tax reliefs offered by the local government. Branches of foreign companies are required to register for VAT in Dubai.
Relocating your business to Dubai by opening a branch is an important step toward global success. However, the process of establishing a subsidiary requires careful planning and compliance with local regulations.
Initial Approval and Name Reservation
Register Your Subsidiary with the Department of Economic Development (DED)
Open a Corporate Bank Account
Visa Procedures
Arrange Office Space
Tax Implications
Please note that depending on the activities to be carried out by your subsidiary, you may be required to obtain additional permits and licenses.
Opening a branch in Dubai may involve legal and regulatory procedures. To ensure compliance with all requirements, it is recommended to seek consultancy and execution services from expert business advisors in Dubai, such as World Company Setup, who can support you throughout the process.
+90 542 381 3868
+971 58 5204103