You can Start Conversation on WhatsApp   Start Conversation with Reganantconsultancy on WhatsApp  +971528678740

Branch and Representative Office in Abu Dhabhi - ChoiceUAE.com


Branch of A Foreign Company - Abu Dhabi

Branch and Representative Office in Abu Dhabhi    Abu Dhabhi
   Type of Government: Constitutional Monarchy
   Name of Emir: Khalifa bin Zayed
   Area: 972.57 km2 (375.49 sq mi)
   Population: 9,21,000+ (2013)
   Major Sectors: Oil & Gas Exports, Trade

   Intro: The capital head of Emirates world, Abu Dhabi is
   second only to Dubai on the population index is the largest
   of all the emirates.

This capital city is situated towards western coast of island which extends outwards forming a T-shape in the Persian Gulf. Although it is the financial capital of the UAE but it still holds the reins of the cultural centre. Being the financial capital this place generates over 50% of the total GDP of the United Arab Emirates.

On the development front the place is world renowned for its sky scraper buildings and well rooted public transportation system spread across the city metro (both: within the city limits and beyond the jurisdiction). Airport here is one of the busiest ones in the aviation sector across the globe and has a high amount of flight frequent with international travellers who often visit for business purpose.

Abu Dhabi Ownership:

The financial capital of the emirates world, Abu Dhabi allows the parent company to retain a 100% ownership of the branch office, under a clause that it must operate under the same name and conduct the same business as the managing firm.

These companies can then conduct various types of business activities provided they get the licences from the respective authorities in Abu Dhabi.

A branch office is only permitted to promote and market the products and services of the parent company.

Abu Dhabi Economy: Being one of the most concrete economies not only in Middle East but world-over, this city famously known as the ‘head of The Emirate world’ has an unchallenged track record of stability for over the last three and a half decades in a row.

Abu Dhabi (The Richest City in the World) is the Capital and the Second most populous city in the UAE and also one of the largest of the UAE's seven member emirates. It occupies 67,340 square kilo meters or 86.7% of the total area of the country.

Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western coast. The city proper had a population of 921,000 in 2013. Abu Dhabi means "Father of Gazelle" Abu Dhabi alone generated 56.7% of the GDP of the United Arab Emirates in 2008.

Abu Dhabi is home to important financial institutions such as the Abu Dhabi Securities Exchange, the Central Bank of the United Arab Emirates and the corporate headquarters of many companies and numerous MNC’s. One of the world's largest producers of oil, Abu Dhabi has actively attempted to diversify its economy in recent years through investments in financial services and tourism. As per World Magazine, Abu Dhabi is the second most expensive city for expatriate employees in the region, and 67th most expensive city. In 2007 as per CNN, Abu Dhabi is the richest city in the world. Setting up Branch – Base Abu Dhabi The branch will be considered the company’s headquarters in Abu Dhabi, and its business shall be subject to the provisions of the laws of Abu Dhabi and the UAE.

Abu Dhabi Ownership:
The financial capital of the emirates world, Abu Dhabi allows the parent company to retain a 100% ownership of the branch office, under a clause that it must operate under the same name and conduct the same business as the managing firm. These companies can then conduct various types of business activities provided they get the licences from the respective authorities in Abu Dhabi.

A branch office is only permitted to promote and market the products and services of the parent company. Abu Dhabi Economy: Being one of the most concrete economies not only in Middle East but world-over, this city famously known as the ‘head of The Emirate world’ has an unchallenged track record of stability for over the last three and a half decades in a row.

1. Ownership
The parent company retains 100% ownership of the branch or representative office, which must operate under the same name and conduct the same business as the managing firm. There is no separate legal identity. A branch or representative office needs to appoint a local services agent, who has no rights, interests or financial involvement in the business. This can be a UAE National, or a company owned by one or more UAE Nationals, who will manage the necessary government procedures and administration. The branch office must have an independent budget, its own profit/loss statements and must appoint a UAE-accredited auditor.

2. Activities
The requirements for registering a branch office in Abu Dhabi differ, depending on whether the parent company and the branch are involved in commercial and industrial activities or professional Activities

3. Commercial and Industrial Activities
A foreign company can conduct trade, commercial or industrial activities in Abu Dhabi by registering first with the UAE Ministry of the Economy (MOE), then with the Abu Dhabi Department of Economic Development (DED). For indirect commercial activities such as construction contracting, registration must first be done with DED then with the MOE. After obtaining MOE and DED approval, the company must engage a UAE National Local Service Agent before the business license can be issued. The Local Service Agent can be an individual or a company. If it is a company, it must be a UAE-based company licensed by the Abu Dhabi Department of Economic Development and 100% owned by UAE Nationals. The appointed Local Service Agent is subject to the approval of the MOE. The obligations of the Local Service Agent towards the parent company, the branch office and third parties are limited to rendering the services required for the company, for example dealing with government requirements. The Local Service Agent has no responsibility or financial commitment in respect of the company's business or activities inside the Emirate or abroad.

4. Branch Imports
A branch can conduct all the business of the company apart from importing its goods into Abu Dhabi, which will be managed by a local trade or commercial agency. The registered agencies must be UAE Nationals, or companies 100% owned by UAE Nationals and will receive a commission or profit on sales.

5. Professional Activities
The Local Service Agent for a branch of foreign company undertaking professional activities must be an individual UAE National and not be a corporate body (a person, not a business). For professional activities, the branch office does not need to be registered with the Ministry of Economy. The registration and licensing process can be completed directly with the DED.

Summary of setting up of a branch, representative or liaison office:
• Foreign investors may establish a branch, representative or liaison office in Abu Dhabi after obtaining license from DED;
• The branch shall merely represent the parent company and carry out business only under the name of the parent company;
• A branch office is permitted only to promote and market the products and services of the parent company;
• A representative or liaison office shall only promote its parent company by gathering information, soliciting orders and works projected to be executed by the head office;
• Prerequisite to set up a branch, representative or liaison office, the parent company must appoint an UAE national as a local sponsor or agent under a written agreement;
• Agent’s liabilities shall be limited to the rendering of services like obtaining licenses, visas and permits necessary for operation of a branch, representative or liaison office
• Foreign company’s branch or representative offices are required to submit a bank guarantee of AED 50,000/- favouring to the Ministry being part of the licence application documentations. The licence of the foreign company’s branch/representative office shall be cancelled if it is not renewed within two years after the expiry date and the fee due to the Ministry shall be deducted from the guarantee.

Fill Your Instant Callback Details


Contact Details * :