Are you planning to expand your international business or open a branch of your foreign company in Dubai—one of the world’s most dynamic and business-friendly cities? Whether you’re a multinational corporation, a well-established SME, or an E-commerce startup ready to scale globally, Dubai offers unmatched opportunities for business management and growth for foreign investors.
According to the World Bank’s June 2025 Global Economic Prospects, the UAE economy is expected to grow by 4.9% in 2027. This strong forecast reinforces Dubai’s position as a leading business hub in the Middle East and across the globe for trade, finance, logistics, and entrepreneurship—making it the perfect place for businesses looking to strengthen their international presence.
But opportunity alone is not enough. Setting up a foreign company branch in Dubai requires clear strategy, careful research and planning, compliance with UAE laws, and approvals from the right authorities. You’ll need to understand who can apply, what documents are required, where to register, when to apply, why Dubai is the right choice, and how the entire process works.
In this comprehensive guide, we cover everything you need to know about registering a branch office in Dubai. By the end, you’ll be equipped with the insights and step-by-step process you need to confidently expand your foreign company into one of the world’s fastest-growing economies.
What exactly is a Foreign Branch Office in the UAE?
A branch office is considered a legal extension of its parent company, not a separate legal entity. This means it can conduct the same business activities and trade under the same name as the foreign parent. Think of it as your home office, just located in Dubai.
How does a branch differ from a subsidiary or a representative office?
- Branch Office: Can conduct full-fledged business, earn profits, and execute contracts under the parent company’s name. It carries out the primary business of the parent.
- Subsidiary Company: A separate legal entity (an LLC) where the parent company is a shareholder. It has its own legal identity, and its liabilities are separate from the parent company.
- Representative Office (RO): A more limited entity. An RO cannot generate revenue or conduct commercial sales in the UAE. Its sole purpose is to promote and market the parent company’s products and services.
For companies looking to directly engage in commerce and replicate their core business in the UAE, opening a branch of a foreign company in Dubai is often the most effective and direct route.
Process of Opening a Branch of a Foreign Company
When you decide to open a foreign company’s branch office in the UAE, you’ll need to prepare the required legal documents, obtain approvals from the relevant government authorities, and ensure full compliance with local business regulations. As an entrepreneur, you might sometimes feel stuck or uncertain about the exact requirements involved in the branch registration process.
We’ve supported more than 100 international firms and startups from Europe, Asia, Africa and Australia in successfully establishing their businesses in Dubai. Our proven 10-step branch setup process simplifies every stage, helping you avoid delays and legal hassles. With our expertise, you can expand into Dubai confidently and focus on growing your business.
Here’s the step-by-step process:
- Choose the Right Jurisdiction (Mainland vs. Free Zone)
- Appoint a Local Service Agent (LSA)
- Document Preparation & Legalization (all parent company documents legalized via notary, embassy, and MOFA in UAE)
- Trade Name Reservation
- Initial Approval from Ministry of Economy (MoE)
- Approval from UAE Federal Foreign Companies Committee (for Mainland only)
- Office Lease / Ejari or Free Zone Facility Agreement
- Final Trade License (DED or Free Zone Authority)
- Registration with Ministry of Economy / Free Zone Authority
1.Choose the Right Jurisdiction
As a businessperson planning to set up a foreign company’s branch office in Dubai, one of the most important decisions you’ll make is where to set it up—on the Dubai Mainland or in a Free Zone business license or in an offshore company. The jurisdiction you choose determines the process, rules, benefits, and even the limitations of your branch operations.
A mainland business setup is an ideal choice if your primary goal is to trade directly within the UAE market, work with government entities, or have full access control the freedom to operate anywhere in the country. Free Zone business setup, on the other hand, is preferred for businesses focused on international trade, re-export, or specific industry sectors, and it often allows 100% foreign ownership. By choosing the right jurisdiction, you’ll set a strong foundation for opening a branch of a Foreign Company in the UAE and avoid costly mistakes later.
Step 2: Appoint a Local Service Agent (LSA) in Dubai Mainland
If you are planning to open a branch of a foreign company in Dubai Mainland, appointing a Local Service Agent (LSA) is a mandatory legal requirement under UAE Commercial Companies Law. Many foreign investors find this step confusing, so let’s break it down in simple terms.
A Local Service Agent is a UAE national (Emirati citizen) or a company that is 100% owned by Emiratis. The LSA acts as your branch’s official representative before UAE government authorities. Unlike a local sponsor in an LLC structure, the LSA does not own shares, does not interfere in your profits, and has no control over your operations. Their role is purely administrative and regulatory.
If you set up a branch in a Free Zone, you do not need a Local Service Agent, as the free zone authority itself acts as your representative.
Here’s a simple step-by-step guide to appointing an LSA:
- Identify a suitable UAE national – either an individual or a 100% Emirati-owned company.
- Negotiate the LSA fee – instead of profit sharing, LSAs are paid an agreed annual service fee.
- Draft the LSA Agreement – prepare the agreement in Arabic (with English translation if needed).
- Notarize the Agreement – sign and notarize the LSA Agreement at Dubai Courts or a Notary Public.
To complete the Local Service Agent agreement, you will need the following documents:
- LSA’s passport copy and Emirates ID
- LSA’s family book (Khulasat Al Qaid) – sometimes required
- Parent company’s board resolution authorizing the Dubai branch setup
- Passport and Emirates ID of the company’s authorized signatory
- Draft LSA Agreement in Arabic (with English translation if applicable)
Step 3: Document Preparation and Legalization
This is one of the most important and time-consuming stages. It’s the most document-intensive phase, where every step matters to ensure the legality of your branch operations.
At this point, you’ll need to gather several official papers from your parent company’s home country. To move forward with your branch setup, prepare the following corporate documents from your home country:
- Certificate of Incorporation – proof that your company legally exists in its home jurisdiction.
- Memorandum & Articles of Association (MOA/AOA) – details of your company’s objectives and structure.
- Board Resolution – officially approving the opening of a branch in Dubai.
- Power of Attorney – granting authority to your branch manager or local representative.
- Good Standing Certificate (often requested by mainland authorities) – confirms the parent company is active and compliant.
- Parent Company Trade License (if applicable in the home country).
- Audited Financial Statements for the last two years.
- Passport copy of the appointed General Manager.
The Legalization Process Explained:
Each document must go through a multi-stage legalization process to be accepted in the UAE. Here’s how it works:
- Notarization – carried out by a public notary in the parent company’s country.
- Attestation – from the Ministry of Foreign Affairs in that same country.
- Legalization – at the UAE Embassy or Consulate abroad.
- Final Attestation – Attestation by the UAE Ministry of Foreign Affairs (MOFA).
Only once this chain is complete will your documents be valid for submission to Dubai’s licensing authorities, the Ministry of Economy, and the Federal Foreign Companies Committee.
Both mainland and free zone branches require this full set of documents. The whole process usually takes about 1–3 weeks, depending on your home country and the attestation steps needed. Once your documents are attested, they’re typically valid for 3–6 months, so make sure to submit them for branch registration within that time to avoid any delays.
CONFIDENT PROJECTS INDIA PVT LTD wanted to open a branch in Dubai. Initially, they attempted the process on their own but missed the UAE Embassy legalization step. As a result, when they submitted the documents to the Ministry of Economy, their application was put on hold.
At that time, they heard about us through a friend who had already set up his business in Dubai, and decided to approach our consultancy for help. Our expert quickly identified the missing step and managed the entire legalization process on their behalf. With our support, the complete set of documents was legalized and attested within just 5 working days.
Step 4: Trade Name Reservation
When opening a branch of your foreign organization in Dubai you don’t have to worry about coming up with a new business name. Your branch is basically an extension of your parent company, so you can usually use the same name you already have in your home country.
But make sure your company’s name complies with UAE naming rules before using it. Sometimes, the parent company’s name might not meet local regulations, so a small tweak could be needed. For example:
- Contains religious or political words.
- Uses abbreviations that aren’t clear.
- Has words restricted under UAE law (like “Dubai Government” or “Emirates”).
- Contains special characters, symbols, or certain foreign-language words.
In such cases you should change the name. For that you have two options
- Keep the brand but tweak the name to fit UAE rules.
Example: Parent company = “Global@Tech Inc.” → Dubai branch = “Global Tech Dubai Branch”.
- Use a Combination Name
If the exact name isn’t possible, you can register a trade name variation that still links back to the parent company.
Example: Parent company = “Saint Mary’s Holdings” → Dubai branch = “SMH Dubai Branch”.
We recently worked with a client, ‘Mr. Abhishek Jindal from the US, who wanted to open a branch for his parent company, “Royal Green Energy LLC.” The name “Royal” is restricted in the UAE due to its regal association. General Manager of Best Solution Vipin Kumar advised Mr. Abhishek to use a slight variation that was compliant with the naming rules. Our team quickly filed a request for “Royal Green Energy -FZE” in a free zone, and it was approved within 2 days. This simple change allowed him to maintain his brand identity while ensuring the name was compliant with local regulations, preventing a major roadblock early in the process.
Step 5: Initial Approval from Ministry of Economy (MoE)
The next milestone is securing initial approval from the Ministry of Economy (MoE). This step is mandatory for both mainland and free zone branch offices in Dubai. The Ministry of Economy acts as the federal authority overseeing foreign company branches across the UAE. Their approval confirms that your parent company is officially authorized to establish a branch in Dubai and operate in compliance with UAE laws.
To apply, you’ll need to submit a set of corporate documents, including:
- Trade Name Reservation Certificate
- Certificate of Incorporation
- Memorandum & Articles of Association (MOA/AOA)
- Board Resolution approving the Dubai branch
- Power of Attorney (POA) for the branch manager/representative
The MoE review process typically takes 5 to 10 working days, depending on the complexity of your business activities and whether all documents were properly legalized.
Once granted, your MoE initial approval is valid for 4 months. If your approval expires before you complete the licensing process, you’ll need to renew it by paying AED 3,500 and submitting the original approval certificate.
We have a 98% success rate in securing initial approvals on the first submission, saving our clients an average of 3-4 weeks in processing time.
Step 6: Approval from the UAE Federal Foreign Companies Committee
After receiving the initial approval, your application will be reviewed by the UAE Federal Foreign Companies Committee, a high-level authority operating under the Ministry of Economy (MoE).
The Committee ensures that every foreign branch operating in the UAE mainland:
- Complies with federal laws governing foreign companies.
- Aligns with the UAE’s economic policies and national interests.
- Represents a genuine and financially stable parent company.
- Operates as a true extension of the overseas entity — not just as a local startup in disguise.
To obtain approval, you’ll need to submit a complete file through the Ministry of Economy (MoE), including:
- MoE Initial Approval Certificate
- Application Form for foreign branch approval (via MoE)
- Parent Company Documents (fully legalized and attested)
- Business Activities Description – outlining what the branch will do in Dubai
- Proof of Legalization & Attestation – UAE Embassy + UAE Ministry of Foreign Affairs (MOFA) stamps
You should submit your application to the Ministry of Economy (MoE) — not directly to the Federal Foreign Companies Committee.The MoE forwards your file to the Committee, which carefully reviews it. It takes about 2 to 4 weeks to review your complete file. Once approved, the clearance is valid for 6 months. If it expires before you complete your license, you’ll need to reapply and pay the applicable fees.
For free zone branches, the Federal Foreign Companies Committee is not involved. Instead, the respective Free Zone Authority handles the final approval to establish your branch within their jurisdiction.
Step 7: Office Lease / Ejari or Free Zone Facility Agreement
The next crucial step is to secure a physical office space. In Dubai, having a verified business address is mandatory for both mainland and free zone branches, and it plays a key role in your branch licensing process.
For a mainland branch, you must rent an office and register the lease under Ejari, Dubai’s official system for tenancy contracts.
Documents required for Ejari registration:
- Signed tenancy contract (commercial lease agreement)
- Title deed or property ownership document of the landlord
- Trade Name Reservation Certificate
- Copy of initial MoE approval
- Passport copy and Emirates ID of the branch manager or authorized signatory
Ejari office registration is handled by the Dubai Land Department (DLD). The registration typically takes 1–3 working days. Ejari contracts are usually valid for 1 year and can be renewed annually.This lease is mandatory to complete the final license issuance with the Dubai Department of Economy & Tourism (DET).
For branches in a UAE Free Zone, you don’t use Ejari. Instead, the Free zone authority (e.g., DMCC, DIFC, DSO, JAFZA) provides the facility agreement, which serves as your official business address.
Documents required for Free Zone facility:
- Signed facility or flexi-desk agreement from the Free Zone Authority
- Initial MoE approval
- Trade Name Reservation Certificate
- Passport copies of branch manager or authorized representative
The registration typically takes within 1–5 working days, depending on the free zone. Facility agreements are usually valid for 1 year, with renewal options.
Always check that your office location meets the branch’s permitted business activities, as some activities require specific office types or spaces. Securing your office early helps avoid delays in the license issuance process.
Expert Tip: Check that your office or free zone facility is officially approved by Dubai authorities. If the landlord or free zone isn’t recognized, your branch license could be delayed or rejected. Consider flexible office options like shared desks or short-term leases if you plan to grow quickly — this can save money and make future expansion easier.
Step 8: Final Trade License (DED or Free Zone Authority)
Once you’ve completed all the previous steps, the final milestone is obtaining your trade license — the official approval that legally allows your foreign company branch to operate in Dubai.
For a mainland branch, the Dubai Department of Economy & Tourism (DET) issues the final trade license, while free zone branches get theirs from the respective Free Zone Authority.
Submit the complete application package, including:
- MoE Initial Approval Certificate
- Federal Foreign Companies Committee Approval (mainland only)
- Trade Name Reservation Certificate
- Office lease agreement
- Legalized parent company documents
- Branch manager details and passport copy
DET reviews the documents, typically 5–10 working days, depending on the completeness of your documents. The trade license is valid for 1 year. After that you can renew it. In the Free Zone Authority the processing time usually takes 3–7 working days. Free zone trade licenses are generally valid for 1 year. You can renew your trade license by submitting updated documents, paying the annual license renewal fee.
Your final trade license is the legal proof that your foreign branch can operate in Dubai.
One of the most common reasons for trade license delays is a single missing document or an error in the initial application. Our internal data shows that over 60% of first-time applications we review have a minor discrepancy, such as a mismatched signature or an expired document. This is why our final license submission is a meticulously reviewed ‘red-tape’ audit. Before submitting your file, our team conducts a triple-check to ensure every document is perfect, eliminating the risk of costly delays and ensuring you get your license on time.
Step 9: Registration with Ministry of Economy / Free Zone Authority
After securing your final trade license, the next essential step is the official registration of your foreign company branch. This is a mandatory step for both mainland and free zone branches, ensuring that your branch is legally recognized and can operate fully in Dubai.
For mainland branches, registration with the Ministry of Economy (MoE). For free zone branches, the respective Free Zone Authority maintains official records of all branches within its jurisdiction. For this, you simply need to submit the required documents to the respective licensing authority. Mainland branch registration with the MoE usually takes 3–5 working days, depending on the completeness of your documents. But the Free zone branch registration generally takes 1–3 working days after submitting the final license and facility agreement.
This step finalizes your branch’s legal status and allows you to conduct official business, hire employees, and open corporate bank accounts.
Opening a foreign company branch in Dubai requires precision at every stage— from preparing legalized parent company documents to securing approvals from the Authority. Best Solution’s team—led by seasoned experts like Essa Al Harthi —has helped numerous international companies establish their branches successfully in Dubai. With years of corporate PRO consulting experience, we know how to navigate the system efficiently, minimizing delays and ensuring compliance at every step.
Expert Tip: Complete the registration immediately after receiving your final trade license. Delays can slow down critical processes like visa applications and bank account setup. Always keep a digital and physical copy of your registration certificate for future reference.
Cost of Opening a branch of a foreign company in Dubai
Dubai is one of the leading global business hubs, so many entrepreneurs assume that company formation in Dubai comes with a high cost. But the cost of starting a business in Dubai isn’t actually that high when you consider the incredible opportunities, long-term value and strong economic development the city offers.. The license cost for opening a branch of a foreign company in Dubai typically ranges between AED 25,000 and AED 35,000, depending on the jurisdiction you choose.
For a mainland branch, the trade license cost usually falls between AED 25,000 and AED 35,000. However, this fee only covers the license itself and does not include the one-time Ministry of Economy (MoE) approval fee of AED 15,000. In contrast, setting up a branch in a UAE free zone usually comes with lower license costs. The trade license for a free zone branch typically ranges from AED 12,000 to AED 25,000.
Keep in mind, we’re only talking about the trade license cost of opening a branch of a foreign company in Dubai. The total business setup cost can vary based on several factors, including the location you choose, the licensing authority, mandatory government approvals, office rent, tax obligations, marketing and Infrastructure, and other operational expenses. By considering these elements, investors get a clearer picture of the actual cost of opening a branch of foreign company in Dubai, beyond just the trade license fee.
Want a clear picture of how much it costs to open a branch of your foreign company in Dubai?
If you’re looking for personalized guidance on the cost of setting up a foreign company branch in Dubai, speak to our experienced business consultants, they will guide you through every step of the process, explain the real costs involved, and give you a clear roadmap to establish your branch smoothly in the UAE.
Conclusion
Opening a branch of your foreign company in Dubai is more than just business expansion—it’s your gateway to one of the fastest-growing and most business-friendly hubs in the world. While the setup journey may seem detailed, breaking it down into clear steps—from approvals and trade license issuance to visas and final registration—makes the process straightforward.
With the right professional guidance, every stage becomes seamless and efficient. Our experienced team specializes in helping international companies establish their branches in Dubai, handling all requirements with accuracy and speed. We streamline government procedures, minimize delays, and provide solutions tailored to your long-term growth. There’s no better time to take the leap and expand your business into Dubai’s thriving market, strategically positioned at the crossroads of global geography.
Frequently Asked Questions
What is the time frame for obtaining a Professional Development Center license in Dubai?
Yes. Whether on the mainland or in a free zone, the branch is legally an extension of the parent company and is therefore 100% owned by it. The National Service Agent required for a mainland branch has no ownership rights.
What is the approximate cost of opening a foreign company branch in Dubai?
The cost varies depending on the jurisdiction (mainland vs. free zone), business activity, accounting needs and office requirements. A mainland setup involves fees for the MoE, DET, and the NSA. Best Solution provides a transparent, fixed-price quote tailored to your specific needs.
How long does the process take?
The timeline can range from 2 to 6 weeks, with the most time-consuming part often being the attestation of parent company documents in the home country. With all documents in order, our team at Best Solution works efficiently to expedite the process with local authorities.
Can a branch office sponsor employee visas?
Absolutely. Once the branch is licensed and has its Establishment Card, it can apply for an employment visa quota and sponsor visas for its manager and employees.
Disclaimer : This guide provides a general information . Regulations and costs may change time to time based on government rules, so consult the best solution’s professional Business Setup consultants for the latest updates. Refer to the glossary for definitions of key terms which is mentioned in this article. Refer to the glossary for definitions of key terms.
