Expanding into the UAE is one of the smartest growth moves a foreign company can make. The UAE offers world-class infrastructure, zero personal income tax, strategic access to markets across the Middle East, Africa, and Asia — and, crucially, it is now significantly easier for foreign businesses to establish a legal presence here.

One of the most practical routes for international companies is the branch office. Unlike forming a new subsidiary, a branch lets you enter the market under your existing company identity, retaining full ownership and continuity. Here is a comprehensive look at how it works in 2026.

What Is a Branch Office?

A branch office is a legal extension of your foreign parent company operating within the UAE. It is not a separate legal entity. The branch operates under the parent company’s name, conducts the same activities, and is fully owned by the parent — which also bears unlimited liability for its operations.

This structure is ideal for international businesses that want market access, the ability to sign contracts and invoice UAE clients, and a credible local presence — without creating an entirely new corporate structure from scratch.

Key 2024 Reforms: What Changed

Two requirements that previously applied have been removed: the mandatory Local Service Agent (LSA) for mainland branches and the AED 50,000 bank guarantee deposit with the Ministry of Economy.

These changes, introduced via Ministerial Resolution No. 138 of 2024, have made the branch structure more accessible and considerably less costly for foreign companies. If you researched this process before 2024, your information is outdated re-assess with current rules.

The Step-by-Step Approval Process

Step 1 — Trade Name Approval

The branch must use the parent company’s existing name, followed by ‘Dubai Branch’ or ‘UAE Branch’. Unique additions to the name require a separate approval stage. Submit the name for approval through the Department of Economy and Tourism (DET) portal.

Step 2 — Ministry of Economy (MoE) Initial Approval

This is the most critical step — and the one most often misunderstood. The MoE initial approval must be obtained before you submit a DET trade license application. Skipping this step and going directly to DET will result in rejection. The MoE reviews your parent company documents, the proposed activities, and the intended scope of the branch.

Step 3 — DET Trade License Issuance

Once you have MoE initial approval, submit the complete application to the Department of Economy and Tourism for the commercial branch license. The branch license is the operational permit that allows your company to begin trading in Dubai.

Step 4 — Final MoE Branch Registration

After receiving the DET license, you must return to the MoE within one month to complete the formal branch registration and obtain the branch Certificate of Registration. Many operators miss this step — it is mandatory and must be completed on time.

Required Documents

The following documents are typically required. All must be notarised, attested by the UAE Embassy in the home country, and translated into Arabic where applicable:

• Certificate of Incorporation or equivalent — proof that the parent company legally exists

• Memorandum and Articles of Association of the parent company

• Board resolution authorising establishment of the UAE branch and appointing a local manager

• Passport copy of the appointed branch manager

• Audited financial statements of the parent company (usually for the last two years)

• Office lease agreement — mainland branches require Ejari registration; free zone branches may accept flexi-desk agreements

• Power of Attorney authorising the manager to act on behalf of the parent company

Mainland Branch vs. Free Zone Branch

Foreign companies can establish branches in two jurisdictions:

Mainland Branch

• Registered with the DET and subject to MoE oversight

• Can trade directly with the UAE market and sign government contracts

• Requires a physical office with Ejari registration

• The parent company is taxed under UAE Corporate Tax rules on branch income

Free Zone Branch

• Registered with a specific free zone authority

• Ideal for companies focused on international trade or services

• May accept flexi-desk or virtual office arrangements

• Cannot trade directly on the UAE mainland without a distributor or mainland branch

Tax and Compliance Obligations

Branch offices must comply with UAE Corporate Tax, VAT registration (if applicable), and Economic Substance Requirements. From 2025, multinational groups with over EUR 750 million in global revenue may also face a 15% domestic top-up tax under OECD Pillar Two rules — including their UAE branches.

Annual audit requirements apply under Article 339 of the Commercial Companies Law.

Timeline and Costs

A well-prepared branch application typically takes two to four weeks from initial MoE submission to DET license issuance, assuming all documents are correctly attested and translated. Document preparation and attestation — particularly for documents originating outside the UAE — can add significant lead time and should be started early.

Government fees vary by activity type but are generally in line with standard mainland license costs. There is no longer an AED 50,000 bank guarantee requirement.

The process is structured, but it rewards preparation. Companies that submit complete, correctly attested documentation move through the approval stages without delays.

If you are ready to explore the branch office route, our consultants can guide you through every stage — from document preparation and MoE submission to DET licensing and post-registration compliance