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Branch and Representative Office in Fujairah - ChoiceUAE.com


Branch of A Foreign Company - Fujairah

Branch and Representative Office in Fujairah    Fujairah
   Type of Government: Constitutional Monarchy
   Name of Emir: Sheikh Hamad bin Mohammed Al Sharqi
   Area: 1,116 sq km (450 sq mi)
   Population: 192,190+ (2013)
   Major Sectors: Hospitality, Local Industry

Intro: Located on the northern tip adjoining the coastline of Gulf of Oman is this small emirate. Encompassed within an area of 450 sq mi Fujairah has a population of over 1.9 lakh with over 35000 migrants and expatriates.

Traditionally it has been deep rooted with small scale industries and trading which survived over years and developed into a big financial sector which backs the overall economy of the nation.

Hospitality industry has outperformed the other sectors and has been growing at a rate of over 10% every year with tourists flow at all time high. A rich coastline and well kept scenic places add on to the foot falls and its fondness to glamour and entertainment established it as a lifestyle and entertainment destination of the Arab.

Fujairah Ownership:
Fujairah lets the head company to hold a 100% share if in case they opt to open a foreign branch in their area provided the company manages and performs under the same brand name as that of the original company.

With its ‘easy to obtain business approval’ norms one can freely work and carry with their commercial transactions in Fujairah and reap benefits from the business friendly policies.

With the acquisition of necessary approvals the branch company can only uphold the trade activities on the line of their parent corporations.

Fujairah Economy: This part of UAE was not as open as its neighbouring places in the emirates, it chose its development and financial projects carefully. In the last decade and a half it has seasoned itself to be at-par with the remaining UAE on the economic and literacy front.

Fujairah is one of the seven emirates that make up the United Arab Emirates, and the only one of the seven that has a coastline solely on the Gulf of Oman and none on the Persian Gulf. Fujairah is also home to the oldest mosque in the United Arab Emirates which was built in 1446 of mud and bricks. Fujairah had a population of 125,698 at the last Census held in 2005. The latest estimate of population is 152,000.
Fujairah's economy is based on local industry that consists of cement, stone crushing and mining.
Different from other emirates, Fujairah is situated on the coast of the Indian Ocean, Oman Bay, not on Persian Bay, two hours away from Dubai.. Special microclimate here is determined by the closeness of the ocean and mountains, a great cocktail of the sea and mountain breezes, making it perfect destination for lifestyle and Entertainment. Setting up Branch – Base Fujairah The branch will be considered the company’s headquarters in Fujairah, and its business shall be subject to the provisions of the laws of Fujairah and the UAE.

Fujairah Ownership:
Fujairah lets the head company to hold a 100% share if in case they opt to open a foreign branch in their area provided the company manages and performs under the same brand name as that of the original company. With its ‘easy to obtain business approval’ norms one can freely work and carry with their commercial transactions in Fujairah and reap benefits from the business friendly policies.

With the acquisition of necessary approvals the branch company can only uphold the trade activities on the line of their parent corporations.

Fujairah Economy: This part of UAE was not as open as its neighbouring places in the emirates, it chose its development and financial projects carefully. In the last decade and a half it has seasoned itself to be at-par with the remaining UAE on the economic and literacy front.

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 Fujairah 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 Fujairah by registering first with the UAE Ministry of the Economy (MOE), then with the Fujairah 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 Fujairah 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 Fujairah, 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 Fujairah 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; and
• 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.

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