Setting up a Branch Office of a foreign company in Dubai is easy, and an attractive prospect as it can be 100% foreign owned, provided a local service agent (like PRO Partner Group) is appointed. A Branch Office is an extension of a foreign parent company registered outside of the UAE. It is a fully-fledged business, permitted to perform contracts or conduct other activities as specified in its licence. A foreign Branch Office may only engage in activities similar to those of its parent company.
Under Commercial Companies Act No 8 of 1984 and Ministerial Decision Number 69 of 1989, a Branch Office of a foreign company is not considered a separate entity. It simply represents the parent company and carries out business under its name. The purpose of the Branch Office is to promote and market the products of the parent company, offer services to its customers and enter into transactions and conclude agreements in the name of the parent company. The branch company is not allowed to partake in any activities disallowed to its parent companies.
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