Telephone Numbers
Telephone Numbers
For detailed information +90 542 381 3868'Call.
As the commercial capital of the United Arab Emirates, Dubai is one of the first destinations international companies choose when expanding into the Middle East, Asia and Africa. If you want a strong entry into a new market without incorporating a fully independent entity, opening a branch in Dubai is a fast, flexible and cost-predictable option. This guide walks you through the branch concept, the setup process, required documents, current cost items and tax obligations step by step.
A branch office is the legal extension of a foreign parent company in Dubai. It is not a separate legal entity; it carries the same name as the parent and may only conduct business within the parent's licensed activities. A subsidiary, by contrast, is a new company with its own legal personality, capital and liability, independent of the parent.
In the branch model, the parent company is directly liable for the branch's debts and obligations, the setup process is shorter, and capital requirements are generally more flexible. A subsidiary offers limited liability but comes with broader accounting, reporting and governance duties. Choose a branch if you want to carry your brand and keep central control; choose a subsidiary if you aim for local partnership and independent growth.
Dubai's geographic position turns it into a logistics and finance hub between three continents. Advanced port and airport infrastructure, a stable political environment and regulations that actively encourage foreign investment create a solid foundation for international companies.
You can establish your branch in a free zone or on the mainland. The choice depends on your target market and activity type.
| Criterion | Free Zone Branch | Mainland Branch |
|---|---|---|
| Foreign Ownership | 100% | 100% (for many activities) |
| Local Market Access | Limited (B2B / international) | Full UAE domestic market |
| Customs Duty | Exemption within the zone | Standard rates |
| Competent Authority | Relevant free zone authority | Department of Economy and Tourism (DET) |
Relocating part of your business to Dubai through a branch is a strong step toward global growth. Branch setup, however, is a phased process that requires careful planning and full compliance with local regulations. Below are the core steps, which can be completed within a few weeks when followed in the correct order.
The trade name is reserved based on the parent company's name, and initial approval for the intended activity is obtained from the competent authorities.
The foreign company branch is registered federally with the Ministry of Economy; for Dubai mainland activities, the trade licence is obtained from the Department of Economy and Tourism (DET).
Once the trade licence is issued, a corporate bank account is opened in Dubai to handle the branch's financial transactions.
A physical or flexible office agreement suited to your activity is arranged; this step is also required for licence and visa processes.
Work and residence permits and Emirates IDs are processed for the branch manager and employees. The residence permit is typically valid for two years.
The branch registers for VAT with the Federal Tax Authority (FTA) and, where applicable, for corporate tax once the relevant thresholds are exceeded.
Please note that additional permits and licences may be required depending on your activity. To ensure compliance with all legal and regulatory requirements, it is advisable to work with expert business consultants in Dubai such as World Company Setup, who can manage the process end to end.
All corporate documents from the home country must be translated and attested (legalisation/apostille) via the UAE consulate and Ministry of Foreign Affairs. Core documents include:
Branch setup cost depends on variables such as the chosen jurisdiction, activity type, office location and the number of visas required. The table below shows the main cost items. Figures are approximate and variable; we recommend requesting a tailored quotation.
| Cost Item | Description |
|---|---|
| Trade Licence | Varies by activity type and authority |
| Attestation & Translation | Apostille, consular legalisation and certified translation |
| Office / Flexible Workspace | Annual rent by location and space |
| Visa & Emirates ID | Depends on manager and staff count |
| Banking & Accounting | Account opening, tax registration and bookkeeping |
The UAE applies federal corporate tax for financial years starting on or after 1 June 2023. Branches of foreign companies are subject to this regime.
| Tax Type | Rate / Threshold |
|---|---|
| Corporate Tax (profit up to AED 375,000) | 0% |
| Corporate Tax (profit above AED 375,000) | 9% |
| Value Added Tax (VAT) | 5% |
| Personal Income Tax | None |
Branches must register for VAT with the Federal Tax Authority (FTA) once the relevant thresholds are exceeded. The UAE's extensive network of double taxation treaties provides an additional advantage to international companies.
Important Notice: The rates, costs and regulatory information on this page were prepared as of July 2026 and are subject to change. For the most current amounts and rates, please check the official websites of the Federal Tax Authority (FTA), the Department of Economy and Tourism (DET) and the relevant free zone authorities.
After the trade licence is issued, a corporate account is opened with Emirates NBD, Dubai Islamic Bank, ADCB or international banks. Banks require the trade licence, parent company financials and a business plan. The approval process usually takes a few weeks.
Once the branch structure is established, a residence and work permit and an Emirates ID are applied for on behalf of the appointed manager. The residence permit is typically valid for two years and is renewable.
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.
When documents are complete and attested, branch setup is usually completed within a few weeks. Timing varies by chosen jurisdiction, activity type and approval processes.
Free zone branches do not require a local sponsor. Mainland branches may, in some cases, require the appointment of a Local Service Agent.
Yes. Corporate tax is 0% on profit up to AED 375,000 and 9% above that. VAT (5%) registration is also mandatory once the relevant thresholds are exceeded.
A branch is an extension of the parent company with no separate legal personality, while a subsidiary is a new company with its own independent legal personality.
Attested documents such as the parent company's articles of association, incorporation certificate, board resolution, power of attorney to the branch manager and passport copy are required.
+90 542 381 3868
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