Practical guide
Branch offices
A branch is not a subsidiary. It has no separate legal personality, which means the parent company carries the liability directly — and it is generally restricted to the activities the parent itself performs.
In practice
Opening a branch office in the UAE
What a branch is
An extension of the parent company operating in the UAE under its own licence but not as a separate legal entity. Contracts are with the parent. Liabilities are the parent's. The activity list is generally constrained to what the parent does, so a branch cannot diversify beyond its head office's business.
Branch versus subsidiary
A subsidiary is a separate company with its own liability shield and its own ability to choose activities. A branch avoids a second layer of shareholding and can be simpler for a foreign parent wanting a direct presence. The liability difference is the point of the decision and it is frequently glossed over.
- Legal personality
- None separate from the parent
- Liability
- The parent's, directly and without limit
- Activities
- Generally restricted to those of the parent
- Parent documents
- Certificate of incorporation, MOA, board resolution and audited accounts, all attested
- Local service agent
- Required for some mainland branch types
- Corporate tax
- A branch is generally a permanent establishment and taxed accordingly
The sequence
How it runs.
Attest the parent documents
Certificate of incorporation, MOA, board resolution and often audited accounts. This is the long pole.
Obtain approvals
Mainland branches of foreign companies require additional approval beyond the economic department.
Appoint a manager
A branch manager is named on the licence and carries real responsibility.
Secure premises
Mainland branches need premises with registered tenancy.
Register for tax
A branch is generally a permanent establishment for corporate tax purposes.
Questions
A branch has no separate legal personality — the parent carries the liability and the branch is generally limited to the parent's activities. A subsidiary is a separate company with its own liability shield and its own activity choices.
Yes, both on the mainland and in free zones, subject to attested parent company documents and additional approvals for mainland branches of foreign companies.
Generally yes. A branch is typically a permanent establishment of the parent and is within the corporate tax regime.
One question
Where are you in this?
Then this is the cheap moment to get it right. Structure, jurisdiction and activity codes are the decisions that are expensive to reverse once a bank account and six visas hang off them.
Answer five questionsOr just ask usMost of what goes wrong at this stage is a document mismatch rather than a refusal — the wrong activity on the licence, an unattested certificate, a name that does not match the trade. Usually fixable faster than it looks.
Tell us what is stuckOr just ask usWe quote a single all-in figure with every government fee itemised beside our own, before you commit to anything. No commission from any authority.
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