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Key Requirements for Obtaining a Branch License in Abu Dhabi

Over the decades, UAE has transformed into a modern business state emerging as a global player across industries. This can be attributed to many different reasons such as geographic location, pro-business policies, and world-class infrastructure. The seven independent cities are thriving centers for finance, trade, logistics, and innovation, making the UAE a sought-after destination for businesses seeking growth and expansion in the Middle East and beyond. 

Abu Dhabi: The Powerhouse of the UAE

As the capital of UAE, Abu Dhabi is one of the major locations for business as it contributes to 68% of the UAE’s total economy, one of the largest emirates by size and ranked 2nd in the economic performance index of the  IMD World Competitiveness Yearbook (2020), making it of the major locations for business to set up their branches   

If you plan to set up a business in Abu Dhabi, you are in the right place. We are leading provider of comprehensive visa services in the United Arab Emirates. With our deep understanding of local regulations and extensive experience, we offer tailored solutions to help individuals and businesses achieve their goals in the UAE. 

If an entrepreneur wishes to set up a branch of his business in UAE, he/she must obtain a branch license to conduct business activities. Doing so enables the business plenty of benefits such as 100% ownership, 100 percent repatriation of capital and profits among many others 

Which Documents are Required to Start a Branch Office?

Before we understand the steps involved in getting a branch office, we must investigate the different documents one must require.  

    • Board Resolution. 
    • Legal standing certificate. 
    • Certificate of Incorporation. 
    • Memorandum of Association (MoA). 
    • Lease Agreement (Tawtheeq). 
    • Reference letter for the general manager.  
    • Copy of passport and CV of the general manager. 
    • Audited accounts of the parent company for the last two years. 
    • A statement that mentions the main operations and activities of the company.

How to Start a Branch Office in Abu Dhabi?

Having understood the different documents that one requires let us look into how one sets up a branch office  

  1. Appoint a Local Service Agent: The first step for the foreign company is to appoint a local service agent to handle the incorporation procedure. The agent makes your work easier by ensuring that your business aligns with the regulations laid down by government agencies and also takes care of the trade name registration procedure.  
  2. File an Application with the MED: This is one of the most important steps. This ensures that the branch has followed all the legal requirements necessary for starting the operations,  The branch office will need an initial approval from the Ministry of Economy and this application will serve as a formal request for permission to establish a branch office in the UAE. We must keep the above documents such as MOA, Certification of Incorporation must be kept in handy.   
  3. Obtain Initial Approval from the MED: Once you get the approval from the Economic Department of the emirate where you want to establish your branch, the UAE Ministry of Economy will issue a formal agreement on your behalf and forward the application to the appropriate local government authority for approval. 
  4. Obtain Approval from the Federal Foreign Companies Committee of the UAE: The next important step one must consider is to secure approval from the FFCC, Federal Foreign Companies Committe which is responsible for overseeing foreign entities operating within the UAE, to comply with all the local laws and regulations. The FCC will carefully review the application and if the application is approved by the FFCC, the company will receive a final approval letter that authorizes the establishment of a branch office in the UAE.  
  5. Obtain a License from the MED:  Here one will get a license which serves as a formal permission for the branch to engage in declared business activities. This license specifies the type of commercial activities the branch is allowed to conduct, ensuring that the company operates within its legal scope outlines in UAE’s regulatory framework. One must keep in mind that your company must strictly adhere to the activities listed in the license, as any deviation without further approval could result in penalties or license suspension.  
  6. Obtain a Business License: The registration process for a foreign business looking to open a branch office in the UAE begins at this stage. Once the branch office gets registered with the local Economic Department of the emirate, a Business License is issued to the company. A branch can obtain a general trading license, a commercial license, or an industrial license. 
  7. Register with Regional Commercial Authorities: Once you have obtained the necessary papers and permits from the respective departments, you can register at the branch office with the appropriate regional commercial authorities and start your operations. 

If you are a business owner looking to obtain a branch license in Abu Dhabi, our experts at BLZ can help you. You can rely on us for complete registration services towards opening a branch in Abu Dhabi as soon as possible.  

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