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 license. A foreign branch office may only be engaged 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 does not have a separate entity. It simply represents the parent company and carries on business under its name. The purpose of the branch office is to promote and market the products of the parent company enter into transactions and conclude agreements in the name of the parent company, and offer services to its customers. The branch company is not allowed to partake in any activities in which its parent companies are not allowed.
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