If you already have an established company abroad and want to operate in the UAE under the same brand, a branch office lets you do that without creating a new entity. Your parent company keeps 100% ownership. But a branch office is not a separate legal entity — it's an extension of the parent, with all the liability implications that carries.
Branch Office vs Subsidiary — Key Difference
<p>A branch is legally the same entity as the parent company. Contracts signed by the branch are contracts of the parent. Liabilities of the branch are liabilities of the parent. There's no corporate veil between them.</p><p>A subsidiary (LLC) is a separate legal entity. Even if wholly owned by a foreign parent, it stands on its own legally. Liabilities stay with the subsidiary.</p><p>Choose branch when: you want to operate under the parent company's name and reputation, the parent company wants direct control, or clients require continuity with the foreign entity. Choose subsidiary when: you want legal separation, plan to take on significant local liabilities, or eventually want to sell the UAE entity independently.</p>
The National Service Agent Requirement
<p>Branch offices of foreign companies must appoint a UAE national service agent. This is a person, not a company, and they must be a UAE national (Emirati citizen).</p><p>The service agent has no ownership stake, no management role, and no access to your bank accounts. Their role is purely administrative: liaison with government departments, assistance with labor and immigration, and certain document submissions that require a local signatory.</p><p>Cost: AED 10,000-25,000/year depending on the agent and scope of services. Some service agents are passive (just sign when needed), others offer active PRO services, document clearing, and government relations. Get a clear contract specifying exactly what's included.</p><p>Your service agent agreement must be notarized and registered with DET. Changing agents mid-year is possible but involves paperwork — choose carefully the first time.</p>
Registration Process
<p>1. Attest the parent company's documents: certificate of incorporation, board resolution (authorizing UAE branch), and power of attorney for the UAE manager. These need home country notarization, apostille/UAE embassy attestation, then MOFA attestation in the UAE. Budget 2-4 weeks for attestations.</p><p>2. Reserve the branch name at DET. It must match or closely resemble the parent company name.</p><p>3. Submit branch registration application at DET with: attested documents, service agent agreement, office lease (Ejari), and passport copies of the UAE manager.</p><p>4. Pay fees: DET license AED 10,000-15,000 + chamber of commerce AED 2,000 + service agent fee.</p><p>5. Get establishment card from MOHRE. This lets you process visas.</p><p>6. Total timeline: 4-8 weeks, mostly eaten by document attestation.</p>
Free Zone Branch Alternative
<p>Some free zones allow foreign companies to open branches without a national service agent. DIFC and ADGM are popular for financial services firms. JAFZA and DMCC accept manufacturing and trading company branches.</p><p>Free zone branches are simpler and faster to set up (1-2 weeks vs 4-8 weeks for mainland). No service agent cost. But you're limited to free zone activities — no direct mainland operations.</p><p>Many international companies open a DIFC branch for the prestige and regulatory environment, while also setting up a mainland branch or subsidiary for operational activities. The DIFC branch handles advisory and management functions; the mainland entity handles customer-facing operations.</p>
Frequently Asked Questions
Does a branch office pay UAE corporate tax?
Yes. Branch offices are subject to UAE corporate tax (9% on taxable income above AED 375,000). The branch is also subject to the parent country's tax laws, potentially creating double taxation. UAE has double tax treaties with 100+ countries that may provide relief. Consult a tax advisor in both jurisdictions before setting up.
Can a branch office hire employees directly?
Yes. The branch registers with MOHRE (Ministry of Human Resources) and can sponsor employee visas directly. The branch manager needs a UAE residence visa. The branch can also sponsor the manager's visa — you don't need a separate personal sponsor arrangement.
What documents need attestation for a branch office?
Certificate of incorporation, memorandum/articles of association, board resolution authorizing the branch, power of attorney, and parent company's latest audited accounts. All need: notarization in home country, apostille (Hague Convention countries) or UAE embassy attestation, then MOFA attestation in the UAE. Some documents also need legal translation into Arabic.
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