The UAE remains one of the best locations in the world for registering a branch office, giving your brand exposure to a host of new commercial opportunities. Business owners are given fantastic support by government agencies and the setup processes is fast and simple. To give you a better idea of what to expect, here are 6 reasons you should consider registering a branch office in UAE:

1. 100% ownership

If you open a branch in UAE, it will be considered an extension of the parent company and not a separate legal entity. This ensures 100% foreign ownership of the branch, which means all similar activities can also be carried out. There is no requirement for a 51% local shareholder, as a local service agent can be used instead and will only receive a fixed annual fee and cannot hold any shares or receive any profit.

2. Lower costs

Registering a branch in the UAE gives you the ability to trade internationally, opening a wealth of exciting new commercial channels. Entering new overseas markets is usually a costly process, but in UAE, there is no share capital requirement which means the upfront costs are much lower. Branch offices are typically smaller than main centralised offices, meaning running costs can also be lower so you can maximise profitability.

3. 0% tax system

Branches of foreign companies (except foreign banks) do not have to pay any corporate tax on the money they earn. While a new 9% tax is being introduced to start in June 2023, companies operating in free zones will remain exempt. Businesses that are not conducting business on the mainland and training internationally do not have to pay corporate tax, which is a great incentive to open a branch in the country.

4. Strategic location

The UAE is perfectly placed for international trade, with Europe, Africa and Asia all only a few hours in front or behind. If you choose to work in Dubai, you’ll have access to one of the largest airports and seaports in the region, which is ideal for importing and exporting.

5. High standard of living

Living standards and the quality of life are considered highly admirable in UAE, with lots of disposable income and strong purchasing power. Crime rates are low, making it one of the safest countries in the world and regularly features close to the top of lists that compare quality of life in countries across the globe.

6. Fast and easy setup

Providing you have the relevant documentation available, opening a branch office in the UAE is a straightforward process. You’ll need foreign company documents such as the certificate of incorporation and memorandum and articles of association, as well as a copy of your passport. You’ll also have to find premises and reserve the trade name, providing you follow the correct guidelines. Registering a branch in the UAE has never been easier. Charterhouse Lombard can assist you with all business registration services. Contact our team and we’ll be happy to discuss your options in more detail.