Branches and Representative Offices
BRANCHES AND REPRESENTATIVE OFFICES OF FOREIGN COMMERCIAL COMPANIES
The Commercial Companies Law also covers the formation and regulation of branches and representative offices of foreign companies in the UAE and stipulates that they may be 100% foreign owned, provided a local agent is appointed.
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Only UAE nationals or companies 100% owned by UAE nationals may be appointed as local service agents. Local agents - also sometimes referred to as sponsors - are not involved in the operations of the company but assist in obtaining visas, labour cards, etc. and are paid a lump sum and/or a percentage of profits or turnover. In general, branches and offices of foreign commercial companies are not licensed to engage in importing activity except for re-export or in the case of products of a highly technical nature. To establish a branch or representative office in Dubai the following documents are required:
- Company registration certificate
- Board of directors' resolution for establishing a branch
- True copy of company's memorandum / articles of association
- Power of Attorney to the representative
- Financial statements for the last two years
- Local service agency agreement
- Details of local service agent
- Company profile
SET UP A DUBAI PROFESSIONAL FIRM
In setting up a professional firm, 100% foreign ownership, sole proprietorships or civil companies are permitted. Such firms may engage in professional or artisan activities but the number of staff members that may be employed is limited. A UAE national must be appointed as local service agent, but he has no direct involvement in the business and is paid a lump sum and/or percentage of profits or turnover. The role of the local service agent is to assist in obtaining licenses, visas, labour cards, etc...
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