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

Branch and Representative Office in Sharjah - ChoiceUAE.com


Branch of A Foreign Company - Sharjah

Branch and Representative Office in Sharjah    Sharjah
   Type of Government: Constitutional Monarchy
   Name of Emir: Sheikh Sultan bin Mohamed Al-Qasimi
   Area: 2,592 sq km (1,005 sq mi)
   Population: 9,00,000+ (2012)
   Major Sectors: Tourism, Trade

Intro: One of the oldest civilizations of the Arab countries Sharjah has been well known in the pages of history as the nation of liberal culture & traditional with a diversified portfolio of businesses and a flourished

banking system made it one of the strongest economies of its time.

True to its name this emirate has affirm its rank as a leading financial institutions even in recent era and the most assorted trade and cultural capital of the UAE.

A prospering retail sector and a thriving hotel industry backed with massive tourists in-flow makes it one of the leading arab cities. Many new projects ranging from infrastructure to places of tourist interest are under development phase and would be completed by 2015 some of the ongoing projects are Al Qasba, Al Majaz Waterfront, Heart of Sharjah and Chedi Khorfakkan Resort.

Sharjah Ownership: The cultural hub of United Arab Emirates ‘Sharjah’ lets the parent company retain a complete ownership for opening a foreign branch within its jurisdiction. In order to be eligible for this the company needs to operate and manage itself under the same brand name as that of its parent company.

A registered foreign branch can possess commercial or industrial activities in Sharjah only when all the required licences are acquired.

Post acquirement of the mandatory trade licenses the local branch of the foreign group can function and operate under the brand umbrella of the parent conglomerate

Sharjah Economy: This city banked on its strong banking edifice which developed gradually during the start of 90’s, however the financial structure became mature during late 90’s and has driven the economy of this emirate simultaneously contributing to the foundation of a strong budgetary establishment.

Sharjah is one of the emirates of the United Arab Emirates (UAE). The emirate covers 2,600 km² and has a population of over 800,000 (2008). Sharjah means “Shark”, which is pronounced as “shardj”.
It is the only emirate to have coastlines on both the Arabian Gulf and the Gulf of Oman. UNESCO named Sharjah 'The Cultural capital of the Arab World' in 1998. The seventeen museums in Sharjah played a critical role in obtaining the award. The city is also notable for numerous Mosques.
Setting up Branch – Base Sharjah The branch will be considered the company’s headquarters in Sharjah, and its business shall be subject to the provisions of the laws of Sharjah and the UAE.

Sharjah Ownership:
The cultural hub of United Arab Emirates ‘Sharjah’ lets the parent company retain a complete ownership for opening a foreign branch within its jurisdiction. In order to be eligible for this the company needs to operate and manage itself under the same brand name as that of its parent company.

A registered foreign branch can possess commercial or industrial activities in Sharjah only when all the required licences are acquired.

Post acquirement of the mandatory trade licenses the local branch of the foreign group can function and operate under the brand umbrella of the parent conglomerate

Sharjah Economy: This city banked on its strong banking edifice which developed gradually during the start of 90’s, however the financial structure became mature during late 90’s and has driven the economy of this emirate simultaneously contributing to the foundation of a strong budgetary establishment.

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 Sharjah 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 Sharjah by registering first with the UAE Ministry of the Economy (MOE), then with the Sharjah 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 Sharjah 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 Sharjah, 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 Sharjah 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.

Fill Your Instant Callback Details


Contact Details * :