Indian Branch Office Registration in UAE – Things to Know
India shares a very extensive trade relation with the UAE. The bilateral trade relation between India and UAE is more than two decades old. The latest Comprehensive Economic Partnership Agreement (CEPA) with India and UAE further strengthens the trade relations of both the countries.
For Indians, Dubai, UAE is a second home with many relatives and friends in the region. So, many are shifting their base to Dubai by opening a branch office of their Indian Company.
Also, there are numerous reasons for Indians to open a branch office in Dubai. The improved trade and commerce opportunities, absence of import duty in Free Zones, the favourable taxation, business friendly rules, etc.
How can an Indian Company Open a Branch Office in Dubai?
An Indian Company to open a branch office in Dubai must follow certain procedures. Most importantly, it is the parent company document attestation. The Parent Company must attest their company document from the UAE Embassy in India.
The parent company documents include the company’s incorporation certificate, article of association, and memorandum of association. Additionally, in requirement of a power of attorney, notarize and attest it also from the UAE Embassy in India.
The shareholders must send the attested documents to UAE for the Ministry of Foreign Affairs (MoFA) Attestation. Furthermore, submit these documents to the respective trade license authority in the Emirate.
So, there are numerous steps involved in the opening of a branch office of an Indian Company in Dubai. Hence, it is advisable to get in touch with a trusted Business Setup Consultants such as AURION. They have in depth knowledge about the company setup operations in the UAE.
Steps to Establish Branch of Indian Company in UAE
To establish a branch of India Company in the UAE Mainland, the investor must proceed with their company registration process. They can go ahead with the respective Department of Economic Development (DED) of the Emirate for processing the trade license.
The steps involved in opening a branch office in UAE in Mainland and Free Zone are almost similar. However, the major difference being the change in Licensing Authority.
1. Steps to Establish Branch of Indian Company in UAE Mainland
In the Mainland, it is the Department of Economic Development, the licensing authority that issues the trade license for the branch office. So, to obtain the Trade License, submit the shareholder details and the attested parent company documents to the authority for review.
Additionally, as it is a branch office setup, the shareholders of the parent company in India must also pass a board resolution stating the opening of a branch company in Dubai and appointing a director who is available in UAE to manage the branch office.
Also, the board resolution must be attested by notary and from UAE Embassy in India, then send it to the UAE for the MoFA attestation. All company documents in India must be notarized before sending it for UAE Embassy Attestation in India to avoid any rejections.
Furthermore, these attested company documents, shareholder details must be submitted to DED Mainland Authorities for review. After making the payment and conducting a review, the licensing authority will issue the branch office license in UAE from the Mainland.
2. Steps to Establish Branch of Indian Company in UAE Free Zone
So, now when it comes to establishing a branch of an Indian Company in a UAE Free Zone, the steps are almost similar with the only change being the Licensing Authority will be the respective Free Zone.
Also, the branch company in the Free Zone will have all the compliance requirements as per the Free Zone business regulations. The Free Zone branch office will act as a representative or sales office for the parent company in UAE.
Depending on the nature of business operations the branch office can function accordingly. They can hire local employees, appoint a Director, import-export goods to the UAE and more. The Free Zone Branch company can perform all operations as stated in the Trade License.
For establishing an Indian Company Branch Office in UAE Free Zone, the attested parent company documents ( UAE Embassy and MoFA Attested) must be submitted to the Free Zone Authority for review.
Furthermore, make the fee payment and obtain the new Branch Office License from the Free Zone in UAE. When it comes to choosing the right Free Zone, there are various aspects to consider for the business owner.
Depending on their business activity, office/warehouse space requirement, proximity to Seaport/Airport, overall company setup cost, and more,the business owner can decide on which Free Zone to go about.
Benefits of Setting up an Indian Company Branch in Dubai
There are numerous benefits for the business owner in setting up an Indian Company branch in Dubai. For Indians, Dubai holds a special place in their heart as they have many acquaintances here in the city. Moreover, Dubai offers several business benefits for the indian investors such as
- World Class Infrastructure and Business Ecosystem to grow the business to international level
- Business Support from the Free Trade Zones and Department of Economic Development
- The Business Friendly Trade Agreements such as the CEPA that promotes bilateral trade
- Favorable Taxation Policies, e-Governance, ease of doing business in the region
- Well connected by roads, airport/Seaport Cargo Handling Capacity, growing trade and commerce destination of the world
- Luxurious living, soaring property prices, digital and technological advancements
- Partnership and collaboration with top-class companies across various industrial sectors, and more
Cost of setting up an Indian Company Branch Office in Dubai
There are various factors that depend on the cost of setting up an Indian Company Branch office in Dubai. However, approx. for a branch office in Dubai Mainland, the cost is AED 28,000 for a trade license with virtual office type setup. When office space requirement, location priority, employment visa, etc., adds on, the cost of setting up a branch office will go up significantly.
Similarly, for opening a branch office in a Free Zone, the cost starts from approx AED 14,900 for a 1 year license with 1 visa quota. The office space, employment visa requirements, etc., adds up to the over cost. Our team of expert Business Consultants will guide you with the right choice of Free Zone at the lowest cost.
How AURION setup your Indian Company Branch office in Dubai?
AURION is a renowned business setup consultants UAE with more than 17 years of Business Expertise. The team will guide the business owners with the right steps to open a Indian Company Branch Office in Dubai.
Starting from the document attestation, document submission, to setting up the office in the Free Zone or the Mainland; the team is always here to guide you with the right advice at all instances.
Connect with our expert Business Consultants right away to know more about opening an Indian Company branch Office in Dubai.