Representative Office In UAE
Expanding business operations are the result of growing business activity. When a company does very well in its native market, growth is usually the next natural move. The growth procedure begins with the formation of a subsidiary business at the desired area. You’ve probably heard terminology like subsidiary company, branch office, and representative office in UAE. These terms appear to be interchangeable, but they are not. Let’s discuss their differences.
Difference Between Branch And Representative Office
Representative Office
This is a company that the parent firm establishes in a foreign area to handle marketing and non-transactional commercial functions. Because they are not employed for fundamental company purposes, they are far easier to set up than a branch office.
- Branch Office
A branch office is a separate office from the parent office that is located in a different place and performs business activities in that location. Different departments, such as HR, Marketing, and Accounting, are accommodated at these offices. The parent corporation owns the property.
Setting Up A Representative Office In UAE
- Locate Local Agents
This is the first work that must be completed. Identifying a local agent is one of the most common activities that both branch and representative offices do. The local agent must be a UAE national or an organization that is entirely owned by UAE nationals.
- Make a Trade Name Reservation
An application for office registration and trade name reservation approval must be submitted to the Emirate’s Department of Economic Development (DED).
- Make an application to the Ministry of Economy.
The application must include a complete image of the firm, including information about the share capital, the head office, the nature of the business, the name of the general manager in the UAE, and other required documents for approval.
- Obtain a license from the DED
The Ministry of Economy (MOE) will provide a clearance letter to either the Abu Dhabi DED or the Dubai DED after the proper documents have been submitted and examined. The customer must submit a new set of documents at this point, besides the original application. These are some of them:
- MOE approval received, as well as various industry-specific approvals.
- Copy of a proposed lease in the United Arab Emirates
- Copies of paperwork submitted by the overseas parent business to the MOE
- Undertaking from the foreign patent company
- A letter from the UAE auditor certifying its existence and outlining the parent company’s two-year financial statements
The DED will issue a business license for a period of one year upon the submission and verification of the aforementioned documents, and it will be subject to annual renewal.
- Execute administrative duties
After receiving the license, you can focus on other aspects of company formation, such as finding office space, opening bank accounts, and obtaining visas and labor cards for staff.
- Join the Chamber of Commerce and Industry as a member.
The final step is to join the Abu Dhabi Chamber of Commerce and Industry by submitting an application with copies of the office lease agreement and a business license from the Department of Economic Development.