Dubai is amongst the most influential emirates in the United Arab Emirate's business network. It is hometo 100s of big corporations and multinational companies that operate in various business sectors. Dubai has created a very favourable environment for investors and traders, which has made this vibrant city of UAE the most attractive Emirates for investments in the UAE.
The investor-friendly atmosphere prompts several foreign companies to establish their presence in Dubai and setup a branch office or a subsidiary company in Dubai. The difference between a branch office and a subsidiary in Dubai is because of the subsidiary's autonomy regarding business operations. On the opposite, the branch office is associated with the parent company and thus depends on it to give guidelines while the subsidiary can independently run its operations in Dubai.
The Process to Register a Subsidiary in Dubai
As per the law of Dubai,
- All companies conducting business in Dubai has to register with the Department of Economic Development (DED).
- To establish a subsidiary in Dubai, you need to appoint a local agent first, who will managethe registration procedure in Dubai and provide the necessary advice.
If you find the process confusing,it would be advisable you hire a company formation expert in Dubai who will assist you with the setup process.
According to the Dubai Company Law, Foreign companies can register subsidiaries in Dubai under limited liability companies (LLC). This is the most registered and preferred business structure in Dubai. Foreign companies can register subsidiaries in Dubai under limited liability companies (LLC). This is the most registered and preferred business structure in Dubai.
Steps that you will have to followand comply with when registering a subsidiary in Dubai:-
- Determine a company name
- Get approval for thebusiness activities you will engage in from the Department of Economic Development in Dubai.
- Draft and notarize the Articles and Memorandum of Association for the subsidiary in Dubai
- Submit the necessary information of the shareholders/partners or the directors to the Department of Economic Development in Dubai
Once the registration of your subsidiary in Dubai is complete, you will need to apply for a business trading licence with Dubai's Chamber of Commerce and Industry.
Get a Trading licence for a Subsidiary in Dubai
To get the trading licence for a subsidiary in Dubai, you will have to submit the following documents and information to the Dubai Chamber of Commerce and Industry in Dubai:
- The original copiesof the Articles and Memorandum of Association for the subsidiary in Dubai
- Trade licence application form
- A letter with name approval, issued by the Department of Economic Development in Dubai
- Letter of approval for the company issued by the Department of Economic Development
- Passport copies ofthe shareholders or directors
You will also need to obtain clearance from the Municipality Building Department in Dubai for your subsidiary in Dubai, as it should have the company's registered office in Dubai.
If you find all the steps mentioned above and processes very complicated, you can make it simple by hiring a business setup company in Dubai that can help you set up your subsidiary in Dubai. Business setup professionals are experienced and aware of every process and requirement, so they can make the entire process easy and hassle-free for you.
