Branch of a Foreign Company in the UAE

What to know

• The branch carries on the parent’s activity; it has no capital or shareholders of its own.
• On the mainland, a branch of a foreign company needs approval from the Ministry of Economy before the licence is issued.
• The obligation for branches of foreign companies to appoint a UAE national service agent was removed.
• Free zones also register branches of local and foreign companies.

Source: Dubai.ae: Business set-up options; UAE Government Portal: Steps to start a business on the mainland; UAE Government Portal: Full foreign ownership of commercial companies^1,2,3

For corporate tax, a foreign company’s branch is usually a permanent establishment and is taxed on the profits attributable to it.⁴