Bring your overseas company to the UAE without forming a new one. PROXPAT prepares the parent company documents, branch licensing and registrations on the mainland or in a free zone.
Page last updated: . Requirements, government fees and processing times are set by the relevant UAE authority and can change.
Opening a Branch of a Foreign Company in the UAE
A foreign company can operate in the UAE through a branch instead of incorporating a new subsidiary. The branch trades under the parent's name and the parent stands behind it. On the mainland, branches of foreign companies are governed by Part Nine of Federal Decree-Law No. 32 of 2021 on Commercial Companies. Free zones license branches under their own regulations.
This page sets out the Decree-Law's rules, how free zone branches work under the rules we have verified for specific zones, and the documents a parent company should prepare.
Please note: this is a summary of published rules, not legal advice. Licensing authorities set their own application steps and document lists.
Branch, Subsidiary or Representative Office?
| Option | What it is | Typically suits |
|---|---|---|
| Branch | An extension of the foreign parent, licensed to carry on its activities in the UAE | Parents that want to trade under their own name and balance sheet |
| Subsidiary | A new UAE company, such as an LLC or free zone company, owned by the parent | Groups that want liability kept inside a local company |
| Representative office | Allowed only to conduct market studies and research production prospects, without commercial activity (Article 339) | Testing the market before committing |
For a subsidiary, see LLC company formation or free zone company formation.
Mainland Branch Rules Under the Decree-Law
| Article | Rule |
|---|---|
| Article 335 | The Decree-Law, except its incorporation provisions, applies to foreign companies with transactions or administrative headquarters in the UAE |
| Article 336 | Except for companies licensed in free zones, a foreign company may not operate or open an office or branch without a licence from the licensing authority, with the Ministry's approval listing its activities. Anyone operating before completing the formalities is jointly and severally liable |
| Article 337 | The company must be entered in the Ministry's foreign companies register and obtain the required approvals and licences. The branch office is its domicile for UAE operations, which UAE law governs |
| Article 337 | The Ministry sets documents, and may set conditions for managing and closing a branch. When a branch closes, it is struck off the register |
| Article 338 | Branches, but not representative offices, keep an independent balance sheet and profit and loss account, use a UAE-registered auditor, and file the balance sheet, final accounts, auditor's report and parent's final accounts every year |
Free Zone Branches
| Zone or rulebook | What it says |
|---|---|
| DIEZA Implementing Regulations 2023 (Dubai Airport Freezone, Dubai Silicon Oasis) | A branch has no shareholders and no separate legal personality; the parent is responsible for all its liabilities and must hold a valid licence for it |
| Dubai Silicon Oasis | After initial approval, a branch provides a tenancy contract and an attested, notarised board resolution, the full memorandum of association and, for companies outside the UAE, the certificate of incorporation |
| IFZA | Foreign incorporated companies may register a branch through IFZA |
| ADGM | Registers and licenses branches of companies formed outside ADGM, including elsewhere in the UAE |
| DIFC | A branch is one of the setup types on the DIFC Portal application |
See DAFZA, Dubai Silicon Oasis, IFZA, ADGM and DIFC.
Free Zone Companies Reaching the Mainland
Where a free zone's legislation allows it, a company established in a free zone may open a branch or representative office elsewhere in the UAE. That mainland branch is subject to the Commercial Companies Law (Article 5). In Dubai, eligible free zone companies can alternatively use the Free Zone Mainland Operating Permit for some sectors.
Parent Company Documents to Prepare
- A board resolution approving the branch and appointing its manager.
- The parent's memorandum and articles of association.
- Certificate of incorporation and, where requested, a certificate of good standing.
- The parent's trade licence or equivalent registration.
- A power of attorney for the branch manager.
- Passport copies of the manager and authorised signatories.
Documents issued abroad must be legalised before UAE authorities accept them, and names must match across every document. See certificate attestation and legal translation.
Obligations Once the Branch Operates
| Obligation | Source |
|---|---|
| Independent accounts with a UAE-registered auditor, filed every year with the parent's final accounts | Commercial Companies Law, Article 338 |
| Corporate tax registration within six months where a non-resident has a permanent establishment in the UAE | FTA Decision No. 3 of 2024 |
| VAT registration once the thresholds are met | VAT law |
| Establishment card before sponsoring staff visas | ICP |
See corporate tax registration, VAT registration and establishment card.
Closing a Branch
When a mainland branch closes, the Ministry strikes it off the foreign companies register (Article 337). Staff visas, the establishment card and tax registrations must be closed first. See company liquidation and deregistration.
How PROXPAT Helps
Branch or subsidiary comparison
Parent document checklist and attestation
Licensing authority and Ministry applications
Free zone branch registration
Manager power of attorney coordination
Establishment card and staff visas
Corporate tax and VAT registration coordination
Branch closure and deregistration
Frequently Asked Questions
Expand into the UAE with the right vehicle.
Explore connected PROXPAT services that support the same client journey.
The licence is the start of the government work, not the end of it
Once the trade licence is issued, the sequence that actually lets you operate begins: the establishment card, the MOHRE and immigration files, your employee quota, then employee visas and work permits. After that it repeats every year — renewals, cancellations when people leave, and licence renewal and amendments.
Companies that would rather not build that function in-house put it on a monthly PRO retainer from AED 700, or use it per transaction. Government fees stay separate and itemised either way.
The first six months after incorporation
- Establishment card issued through immigration
- MOHRE file opened and e-signature completed
- Employee quota checked before hiring
- Offer letters, work permits and entry permits
- Medical, Emirates ID and visa stamping
- Corporate tax and VAT registration where they apply
More in Structures and Costs
Open Your Company's UAE Branch
PROXPAT prepares and attests the parent documents, files the branch licensing and registrations, and sets up the establishment card, visas and tax registrations.