Want a presence for your company in the UAE market without forming a whole new company from scratch? A branch of a foreign company lets your business operate here under its own name and within its own activities, with a major simplification introduced by a recent reform. But a successful registration depends on the right order and full attestation of documents. This guide shows you the way.
What Is a Branch of a Foreign Company?
The Basic Definition
A branch of a foreign company is a legal extension of the parent company inside the UAE, carrying the same name and performing the same activities. The branch isn’t a separate legal entity; the parent company bears full legal and financial responsibility for its obligations. This is the essential difference between it and a subsidiary (LLC), which is treated as an independent entity with a separate financial liability.
In short: a branch gives you an official presence under your parent company’s identity, without creating new shareholders or an ownership structure.
The 2024 to 2026 Update: What Changed?
A Major Simplification for the Foreign Investor
Under Ministry of Economy Ministerial Resolution No. 138 of 2024, which replaced the older Resolution No. 377 of 2010, a mainland branch of a foreign company is no longer required to appoint a national service agent, and the AED 50,000 bank guarantee requirement was removed. This reduces complexity and recurring costs and keeps full control with the parent company. If you see a guide still requiring a “national service agent,” it’s out of date. (Rules are subject to updates, confirm with the Ministry of Economy.)
Branch, Subsidiary, or Representative Office?
Choose the Right Structure
- The branch: performs the same activities as the parent, with full legal liability on the parent
- The subsidiary (LLC): an independent entity that shields the parent from direct liability, can be 100% foreign-owned in most activities, but requires its own capital, memorandum of association, and governance
- The representative office: for promotion, marketing, and market study only, without conducting commercial activity or earning direct revenue
The rule: choose a branch to carry out the parent’s activity, a subsidiary to isolate liability, and a representative office if your goal is marketing only.
Mainland or Free Zone?
Two Routes With Different Procedures
A mainland branch requires two approvals: registration with the Ministry of Economy, then a licence from the local economic authority (the Department of Economy in Dubai, or the Department of Economic Development in Abu Dhabi). A free-zone branch, by contrast, is licensed directly by the free-zone authority through its own procedures, without going through the Ministry of Economy. Define your target market and activity first to choose the route that fits.
Documents Required (Attested)
Essential Document Checklist
- An official certificate from the parent company’s country of incorporation showing its name, legal form, owners, activity, and capital
- A Good Standing certificate proving the parent company is validly existing
- A board resolution of the parent to open the branch and appoint the manager
- An official power of attorney for the company’s representative filing the application
- The trade-name reservation certificate and initial approval
- The passport of the appointed manager
These documents are attested up to the level of the UAE embassy in the country of origin, then the UAE Ministry of Foreign Affairs, and translated into Arabic by a legal translator certified with the Ministry of Justice. Since requirements are subject to updates, it’s advisable to check with the relevant authority before applying.
Registration Steps Step by Step
The Process in Order
- Reserve the trade name and obtain initial approval
- Attest the parent company’s documents and translate them legally
- Register with the Ministry of Economy and obtain approval (usually valid for four months)
- Obtain the licence from the local economic authority (the Department of Economy or the Department of Economic Development)
- Issue the establishment card, open the bank account, and issue employee visas
How AAMER Helps You
Certificate attestation and legal translation are core AAMER services, and they are the heart of branch registration. Through AAMER, you can attest and translate your parent company’s documents, prepare and submit the registration application, coordinate the manager’s appointment, and track your transaction through to the licence, the establishment card, and the visas. The AAMER team guides you through the correct order and spares you the attestation mistakes that delay the transaction, while the registration decision stays with the Ministry of Economy and the local authority.
The Branch’s Activity Limits
What It Can and Can’t Do
A branch performs only the same activities as the parent company, and it can’t carry out any activity outside the scope of the parent’s licence. A representative office, meanwhile, is limited to promotion and marketing without selling or earning direct revenue. Crossing these limits exposes the branch to fines or suspension of activity, so make sure your intended activity matches the parent company’s before applying.
Cost and Timeline: What to Expect
Know Your Obligations
The cost includes the Ministry of Economy registration fee (around AED 7,500 as currently applied, subject to change) and the local licensing fee, plus the costs of attestation and translation. As for timing, attesting documents abroad can take weeks and is the most common cause of delay, so start it early. The registration certificate is usually issued for one year, renewable. Verify the current official fees before starting.
Important Points Not to Overlook
Essential Warnings
- The parent company bears full responsibility for the branch’s obligations, since the branch isn’t a separate entity
- Attesting the parent company’s documents in the country of origin is the longest step, so start it early to avoid delay
- The branch performs only the parent’s activities and can’t go beyond them
- A representative office is for marketing only and doesn’t conduct income-generating commercial activity
- The licence needs annual renewal, and a delay freezes the branch’s activity
Let AAMER Handle Your Branch Registration Procedures
How AAMER Simplifies the Process
AAMER Logistics provides you with a digital platform and a specialized team to attest and legally translate your parent company’s documents, submit and track the branch registration application through to the licence, and coordinate the establishment card and visas, in coordination with the relevant authorities. Learn more about company setup and licensing services in the UAE.
Expand Your UAE Presence on a Solid Foundation
A branch gives your company a foothold in one of the most dynamic markets, and the right order makes the path to it faster. Download the AAMER App and organize your branch registration with ease, and begin your presence in the UAE with confidence.