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Appointing a Branch in uae
The Companies Law, in article (313) allows a foreign company to exercise its main activity in the UAE by opening a branch or a representative office.
An agent should be a UAE national. A service agent is not an empowered agent who can bind his principal as explained in the definition of the term “agent” in the Commercial Companies Law. A service agent is not responsible to undertake any financial obligations concerning the activities of the company’s branch or office within the UAE or abroad. He should not interfere in the matters related to the company’s management or activities.
His duties towards the company and others are confined to providing such services as required by the principal. These services usually include obtaining of entry/residence permits, acquiring of the necessary licenses or facilitating the processing of its transactions with the government authorities.
The service agent is remunerated in lump sum for the services rendered to the foreign company, which sum shall be the subject of an agreement between him and the company.