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Branch and Representative Office in Umm al Quwain(UAQ) - ChoiceUAE.com


Branch of A Foreign Company in - Umm al-Quwain

Branch and Representative Office in Umm al Quwain(UAQ)    Umm Al Quwain
   Type of Government: Constitutional Monarchy
   Name of Emir: Saud bin Rashid Al Mu'alla
   Area: 752 sq km (292 sq mi)
   Population: 90,000+ (2012)
   Major Sectors: Tourism, Real estate

Intro: Umm Al Quwain is the least populous of the seven emirates with an area of 752 sq km the Inhabitants here form a total strength of 90,000 with 15,000 expatriates

and 75,000 local Arabs. Traditionally an agricultural and fisheries driven sovereign, the economy here transformed itself with real estate boom. In recent years (early 2000) the government explored tourism as a secondary source of revenue and successfully established itself as one of the prominent places for tourism in the UAE.

Quwain offers a mix bag of options to the tourists, with fort (Umm Al Quwain Fort) located in Umm Al Quwain Bazaar dated back to the medieval period to modern day Aqua Park (Dreamland) which is the largest water park in the UAE (on the basis of size) with an area of 250,000 sq mt. located on the coastline of Umm Al Quwain which attracts over fifty thousand visitors every week.

Umm Al Quwain Ownership:
Having a branch office of a foreign company in the emirates of Umm Al Quwain enables the parent company to retain a 100% ownership provided it must operate under the same name and conduct the same business as the managing company.

Once established the branch offices can freely run their business related transactions here post acquiring the permissions for the Umm Al Quwain government.

The branch company is permitted only to promote and market the goods and services of the parent company in this emirate.

Umm Al Quwain Economy: has seen massive development in the last decade, which started from the mid-90’s and has been constant since then. This place became the obvious next destination to benefit from the upscale real estate development in the neighbourhood.

Umm al-Quwain is the least populous of the seven sovereign emirates in the United Arab Emirates, located in the north of the country. The population is about 72000 as per 2007. It is the second smallest emirate, with a total area of around 770 KM2.

Fishing is the local population's primary means of income. Date farming also plays a significant role in the economy. Umm Al Quwain has nice beaches, camel races, shooting clubs Setting up Branch – Base Umm al-Quwain The branch will be considered the company’s headquarters in Umm al-Quwain, and its business shall be subject to the provisions of the laws of Umm al-Quwain and the UAE.

Umm Al Quwain Ownership:
Having a branch office of a foreign company in the emirates of Umm Al Quwain enables the parent company to retain a 100% ownership provided it must operate under the same name and conduct the same business as the managing company.

Once established the branch offices can freely run their business related transactions here post acquiring the permissions for the Umm Al Quwain government.

The branch company is permitted only to promote and market the goods and services of the parent company in this emirate.

Umm Al Quwain Economy: has seen massive development in the last decade, which started from the mid-90’s and has been constant since then. This place became the obvious next destination to benefit from the upscale real estate development in the neighbourhood.

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 Umm al-Quwain 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 Umm al-Quwain by registering first with the UAE Ministry of the Economy (MOE), then with the Umm al-Quwain 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 Umm al-Quwain 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 Umm al-Quwain, 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 Umm al-Quwain 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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