Types of Branch Office in the UAE
Types of branch offices which can operate in the UAE:
A business-owner can choose from 4 different categories and consider the one which would be the most effective for their business.
Corporate Shareholder Stands as a business entity that holds shares in another limited company and is entitled to the same rights as that of a non-corporate shareholder. Here the parent firm may be based in the UAE or overseas. In addition to the license, corporate shareholder offices enable a single shareholder to hold a stake in the company.
For instance, a business could be owned by a UK company 50 percent, another individual 25 percent (based either in the country of origin of the parent company or in the UAE) and another individual 25 percent. The company can also have multiple corporate owners.
Branch company is one of the most common set-ups in UAE.
In this setup as well the parent firm may be based in the UAE or overseas.
Unlike corporate shareholder, however, branch business follows the sole proprietorship rule.
There is therefore no need for share capital to open a branch office.
Representative offices, the most cost-effective of all branch kinds, can have their parent company operating within UAE or overseas.
The main distinction between the branch of the representative office and others is that their business operations are restricted to encouraging and sourcing work for the parent company.
Representative offices are not permitted to create a profit in the UAE, and all work must be outsourced to the parent business.
Subsidiary companies are perhaps the most unique of the kinds of branches
They are regarded to be the parent company’s distinct legal identity and must be managed within the UAE.
This implies that the subsidiary assumes full responsibility for its actions and company operations.
The parent company of the subsidiary firms may be based in the UAE or abroad but the management of the subsidiary itself should be based in the UAE.
If you want to enter the the UAE market, make sure you enjoy the benefits of the UAE’s attractive tax system. Then begin the process of setting up a branch office today and in a matter of weeks you could trade.
Do not get into the hassle of running from one authority to other, leave that upon us and we at PMC Solutions DMCC will setup your branch office whilst saving your time and money. Contact our business consultants for further guidance.
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