Registering a Branch of a Foreign Company in the UAE

If your company is already established abroad and you want a presence in the Emirates, opening a branch of a foreign company in the UAE is one of the most common routes — no new shareholder, no fresh share capital, the same trading name as head office. It is one path within the wider decision of starting a business in the UAE, and it comes with rules that differ sharply from setting up a standalone local company.

This guide explains what a branch actually is in law, how it compares with a subsidiary and a representative office, whether you still need a local service agent, which documents your parent company must legalise, and the step-by-step licensing route. If your goal is a brand-new UAE entity instead, our walkthrough on registering a company in Dubai covers that path.

Direct answer. A foreign company can operate in the UAE through a branch, which is an extension of the parent — not a separate legal entity — and is governed by the Commercial Companies Law, Federal Decree-Law No. 32 of 2021. You register it through the Ministry of Economy and the licensing authority of the emirate you choose, appoint a local service agent where one is still required, and legalise the parent's corporate documents up to the UAE. The sections below cover the routes, documents, steps and costs.

What is a branch of a foreign company in the UAE?

A branch is not a new company. It is the same legal person as the head office, operating under the same name, carrying out activities that fall within the parent's own objects. Because there is no separate legal personality, the foreign parent bears full liability for the branch's obligations in the UAE — debts, contracts and judgments reach through to head office.

That single fact drives most of the practical differences. A branch:

• Uses the parent's name (often with "branch" appended), not an invented UAE brand.
• May only carry on activities that the parent is licensed to perform abroad, and that the UAE authorities approve.
• Has no share capital of its own, though the authorities may require a bank guarantee (see costs below).
• Is managed by a branch manager appointed under a power of attorney from the parent's board.

The framework for foreign companies operating in the country sits within the Commercial Companies Law, Federal Decree-Law No. 32 of 2021. You can read the consolidated text on our legislation page for the Commercial Companies Law. The specific articles governing foreign-company branches should be confirmed by a licensed adviser before you file, as the applicable provisions turn on your activity and structure.

Branch vs subsidiary vs representative office

Three structures let a foreign business operate here, and choosing correctly at the start saves costly restructuring later. This is the core branch vs subsidiary question.

• Branch. An extension of the parent. Same legal personality, parent fully liable, activities limited to the parent's own. It can invoice clients and generate revenue in the UAE.
• Subsidiary. A separate UAE company — usually a limited liability company — owned by the foreign parent. It has its own legal personality and limited liability, so the parent's exposure is generally capped at its shareholding. A subsidiary can pursue activities beyond the parent's and is often the cleaner choice where liability isolation matters.
• Representative office. The most limited form. A representative office in the UAE may only promote and market the parent's products, gather market information and liaise with clients. It cannot trade, sign commercial contracts for profit, or generate revenue. It typically must appoint a local service agent.

If you intend to bill customers and run operations, a branch or subsidiary fits. If you only want a marketing and liaison footprint, a representative office is lighter — but understand its ceiling before committing.

Do you still need a local service agent?

Historically, a mainland branch of a foreign company had to appoint a local service agent (LSA) — a UAE national or a company wholly owned by UAE nationals. The LSA holds no equity, takes no share of profit, and does not manage the business. The role is administrative: liaising with government departments and helping with visas and licence renewals, usually for a fixed annual fee.

The 2021 reforms to the Commercial Companies Law relaxed foreign-ownership rules across much of the mainland economy, and the local service agent requirement for foreign-company branches has been narrowed as part of that shift. Whether an LSA is still required for your specific activity and emirate varies — it turns on the activity classification and the rules of the licensing authority you file with, so confirm it there directly. The typical annual LSA fee also varies, because it is negotiated commercially rather than fixed by statute.

Two practical points:

• A branch inside a free zone does not use a mainland-style LSA; the free zone authority is your counterparty instead.
• Where an LSA is used, put the relationship in a clear written agreement so the agent's fixed, non-equity role is unambiguous.

Documents you need to register a foreign company branch

Most of the paperwork comes from the parent, and nearly all of it must be attested and legalised — notarised in the home country, legalised by the UAE embassy or consulate there, then attested by the UAE Ministry of Foreign Affairs, and translated into Arabic by a licensed legal translator. Expect to prepare:

• The parent's certificate of incorporation / commercial registration.
• The parent's memorandum and articles of association.
• A board resolution approving the UAE branch and its scope of activity.
• A power of attorney appointing the UAE branch manager.
• Passport copies of the manager and the parent's directors/authorised signatories.
• The parent's audited financial statements, often for the most recent period (the exact number of years required varies by emirate and licensing authority — confirm it directly).
• The local service agent agreement, where one is required.

Because attestation runs through several offices in two countries, this stage usually takes the longest. Government service information for the UAE is published centrally at u.ae; confirm the current attestation chain there or with your adviser before you courier originals.

Step by step: how to register the branch

The exact counter names differ by emirate, but the sequence is consistent for a mainland branch:

1. Ministry of Economy approval. A foreign-company branch needs the Ministry of Economy's sign-off on the parent and the proposed activity before the emirate will license it.
2. [Trade name](/dictionary/trade-name) and initial approval. Reserve the branch name with the emirate's economic department (for example, Dubai's licensing authority) and obtain initial approval for the activity.
3. Local service agent agreement. Where still required, sign the LSA agreement and have it notarised.
4. Lease and [Ejari](/dictionary/ejari). Sign a tenancy for physical premises and register it (Ejari in Dubai), since a branch generally needs a real address.
5. Final licence issuance. Submit the legalised parent documents, approvals and lease to the economic department, pay the fees, and collect the branch licence.
6. Chamber of Commerce and [Commercial Register](/dictionary/commercial-register). Register the branch with the emirate's Chamber of Commerce and on the Commercial Register.
7. Post-licence steps. Open a corporate bank account, register for tax as applicable, and apply for establishment cards and visas.

A branch in a free zone follows the free zone's own portal instead of the Ministry-of-Economy-plus-DED route, and the free zone acts as both regulator and landlord.

Costs, guarantees and ongoing obligations

Set-up cost depends on the emirate, the activity and whether you go mainland or free zone, so treat any single headline figure with caution. The main line items are: Ministry of Economy and licensing fees, name reservation, attestation and legal translation of the parent's documents, office rent, the LSA fee where applicable, and Chamber of Commerce registration. Specific fee amounts vary by emirate and authority — verify each against the relevant authority's current schedule rather than relying on estimates.

A few authorities have historically required a bank guarantee lodged in favour of the Ministry of Economy for a foreign-company branch; whether this still applies, and any amount, varies by authority — confirm it directly.

Ongoing, a branch typically must:

• Renew its licence annually and keep its lease and (where used) LSA agreement current.
• Maintain proper accounting records and, in many cases, file audited financial statements.
• Register and comply with UAE corporate tax. A UAE branch of a foreign company is generally a taxable presence, so the Corporate Tax Law (Federal Decree-Law No. 47 of 2022) will usually apply; the standard rate is 0% on taxable income up to AED 375,000 and 9% on taxable income above AED 375,000, which should be confirmed against the Federal Tax Authority's published guidance.
• Register for VAT under the Value Added Tax Law (Federal Decree-Law No. 8 of 2017) if its taxable supplies meet the mandatory registration threshold of AED 375,000.

Getting the structure, agent status and tax position right at the outset is far cheaper than unwinding a wrong choice. A UAE corporate lawyer can confirm which route fits your activity and whether an LSA or bank guarantee applies to you — you can compare and contact one through the LEXAI directory of UAE lawyers.

Frequently asked questions

Is a branch of a foreign company a separate legal entity in the UAE?

No. A branch is not a separate legal entity — it is an extension of the foreign parent and shares its legal personality. It operates under the parent's name and can only carry out activities the parent itself is licensed for. Because there is no separate entity, the parent bears full liability for the branch's debts and obligations in the UAE. If you need liability isolation, a subsidiary is usually the better structure.

What is the difference between a branch and a subsidiary in the UAE?

A branch is the same legal person as its foreign parent, so the parent is fully liable and the branch is limited to the parent's activities. A subsidiary is a separate UAE company — often an LLC — with its own legal personality and limited liability, so the parent's exposure is generally capped at its investment. A subsidiary can also pursue activities beyond the parent's. Choose a subsidiary when isolating risk or broadening scope matters most.

Do I still need a local service agent for a foreign company branch?

Sometimes. Mainland branches historically required a UAE-national local service agent who holds no equity and no management role. The 2021 Commercial Companies Law reforms narrowed this requirement for many activities, so whether it applies now depends on your activity classification and the emirate you file in. A branch inside a free zone does not use a mainland-style agent. Confirm your specific position with the licensing authority or a qualified adviser before filing.

Can a representative office trade or earn revenue in the UAE?

No. A representative office is strictly limited to promoting and marketing the foreign parent's products, gathering market information and liaising with clients. It cannot trade, invoice customers, sign commercial contracts for profit, or generate revenue in the UAE. It usually must appoint a local service agent. If you intend to bill customers or run operations, you need a branch or a subsidiary instead of a representative office.

What documents must the foreign parent company provide?

The parent typically provides its certificate of incorporation, memorandum and articles of association, a board resolution approving the branch, a power of attorney for the branch manager, passport copies of signatories, and recent audited financial statements. Nearly all of these must be notarised in the home country, legalised by the UAE embassy there, attested by the UAE Ministry of Foreign Affairs, and translated into Arabic. Requirements vary by emirate, so confirm the current checklist before couriering originals.

Is a UAE branch of a foreign company subject to corporate tax?

Generally yes. A UAE branch of a foreign company is usually treated as a taxable presence, so the Corporate Tax Law (Federal Decree-Law No. 47 of 2022) will normally apply to the branch's profits. The standard rate is 0% on taxable income up to AED 375,000 and 9% on taxable income above AED 375,000; any relief depends on your circumstances — confirm the details against the Federal Tax Authority's current guidance. VAT registration may also be required if taxable supplies meet the threshold. Take tax advice early.

How long does it take to register a foreign company branch in the UAE?

It varies, and the biggest variable is document attestation, which runs through offices in both the home country and the UAE. Ministry of Economy approval, name reservation, the local service agent step (if required), the lease, and final licensing then follow in sequence. A specific timeline range varies because it depends on the emirate, the activity, and how quickly legalised documents arrive. Preparing and attesting the parent's paperwork early is the best way to compress the schedule.