Dubai and Abu Dhabi are two of the most business-friendly cities in the UAE, offering ample opportunities for entrepreneurs. If you’re already running a business in Abu Dhabi and looking to expand into Dubai, obtaining a Dubai branch license is a strategic move. But how does the process work, and what should you consider before taking this step? Let’s break it down.
Why Expand to Dubai?
While Abu Dhabi offers strong business incentives, Dubai remains a global business hub with access to international markets, a diverse consumer base, and tax-friendly regulations. Setting up a branch in Dubai allows companies to:
- Expand their customer reach
- Operate in a high-growth business environment
- Establish credibility with Dubai-based clients
- Leverage Dubai’s global connectivity for trade and business
What is a Dubai Branch License?
A branch license allows an Abu Dhabi-based company to establish an official presence in Dubai while maintaining its legal identity under the parent company. Unlike a subsidiary, a branch office is not a separate legal entity but rather an extension of the existing business.
Key benefits of a branch license:
- 100% ownership by the parent company
- No need for a local partner
- Same business activities as the parent company
- Ability to trade and sign contracts in Dubai
Steps to Obtain a Dubai Branch License
1. Choose the Right Jurisdiction
Dubai offers two options for branch setup:
- Mainland License: Suitable for businesses engaging with the local UAE market.
- Free Zone License: Best for companies focused on international trade or specific industries like media, tech, and finance.
Each jurisdiction has its own set of requirements and regulations.
2. Obtain Initial Approvals
Before applying for the branch license, you must get approvals from:
- The Department of Economic Development (DED) in Dubai (for mainland businesses)
- The relevant free zone authority (if setting up in a free zone)
- The Ministry of Economy (for certain business activities)
3. Submit the Required Documents
To establish a branch, you’ll need to prepare and submit the following:
- Parent Company’s Trade License & Certificate of Incorporation
- Board Resolution Approving the Branch Setup
- Memorandum & Articles of Association (MOA/AOA)
- Power of Attorney for the Local Manager
- Office Lease Agreement in Dubai
- NOC (No Objection Certificate) from Abu Dhabi Authorities
4. Pay the Licensing Fees
The cost of obtaining a Dubai branch license varies based on the jurisdiction and business activity but typically includes:
- Government Fees: AED 10,000 – AED 20,000
- Office Rent (if applicable): AED 15,000 – AED 50,000 per year
- Legal & Processing Fees: AED 5,000 – AED 10,000
5. Obtain the Final License & Start Operations
Once approvals and payments are completed, the branch license will be issued, and the company can legally operate in Dubai.
Key Considerations Before Expanding
1. Compliance with UAE Business Laws
Operating in both Abu Dhabi and Dubai require adherence to local regulations, including taxation, licensing, and corporate governance.
2. Choosing the Right Location
Dubai has multiple business districts, each catering to different industries. Consider setting up in:
- Downtown Dubai & Business Bay (Corporate & Finance)
- Dubai Internet City (Tech & Digital Businesses)
- Jebel Ali Free Zone (JAFZA) (Trading & Logistics)
3. Managing Operational Costs
While Dubai offers vast opportunities, rental costs, licensing fees, and operational expenses can be higher than Abu Dhabi. Having a clear budget plan is crucial.
Is Expanding to Dubai the Right Move?
If you’re looking to scale your Abu Dhabi business and tap into a larger, more dynamic market, a Dubai branch license is an excellent option. With 100% parent company ownership, streamlined approval processes, and access to Dubai’s thriving business ecosystem, expansion becomes a strategic growth opportunity.
Get Expert Assistance
Navigating the Dubai branch license process can be complex, but professional business setup services can simplify the process, ensuring compliance and hassle-free approvals. If you’re ready to take your business to the next level, start your Dubai expansion today.