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Home Services Branch vs Subsidiary in the UAE: Choosing the Right Structure

Branch or Subsidiary in the UAE: What to Choose?

1. Branch of a Foreign Company

A branch is a legal extension of the parent company outside the UAE. It is not an independent legal entity, operates under the same name, and within the same activities.

  • Does not have its own share capital.
  • Activities are the same as the head office.
  • Requires the appointment of a local service agent (in Mainland).
  • Can be registered in Mainland or in a Free Zone.

2. Subsidiary

A subsidiary is an independent legal entity registered in the UAE, fully owned by a foreign company.

  • Own management structure and accounting.
  • Can have a different name and type of activity.
  • Is a full-fledged company under UAE law.
  • Requires share capital.
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What We Offer

  • Consultation on choosing the format: branch or subsidiary.
  • Preparation of legalized documents of the parent company.
  • Translations and notarizations.
  • Interaction with the economic department or Free Zone.
  • Assistance in opening a corporate bank account.
  • Support with visa and tax issues.
Turnkey Registration of a Branch or Subsidiary in the UAE

We prepare legalized documents, interact with departments and free zones, and help open an account. We know all the requirements of UAE Law No. 32.

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When is Branch Registration Mandatory?

Federal Law No. 32 of 2021 (Commercial Companies Law UAE)

A foreign company is required to register a branch if it conducts activities in the UAE directly, without creating a separate legal entity.

  • The company provides services or sells goods in the UAE directly in the name of the head office.
  • There is a permanent presence (office, employees, warehouse), but no subsidiary is created.
  • Participation in tenders and government procurements requires a local branch.
  • The branch is registered as 100% owned by the foreign company but must follow the activities of the head office.

Thus, if a foreign company wants to conduct business in the UAE without creating an independent structure, it must register a branch. We support the process legally correctly, taking into account all legal requirements.

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