How to Start a Representative Office in the UAE

Start a Representative Office in the UAE

Are you looking to expand your business through a representative office in the United Arab Emirates (UAE)? In that case, you must spend some of your valuable time with us. Establishing a representative office in the UAE involves the consideration of many factors and following several steps. Today, we will share an in-depth guide to start your representative office in this country. Plus, we will try to clear all your doubts about the representative office in this article. 

Representative office - Overview

Some of you might think that setting up a branch office and representative office in the UAE is the same process. Therefore, you should first learn about the exact meaning of this office to ensure you avoid committing any mistakes in the future. A representative office is a conduit connecting your parent company to the international market. You can establish your Representative Office in a foreign area to conduct marketing and non-transactional business activities.  For example, you own a financial service firm focusing on venturing into the dynamic market of the UAE. Despite committing to a full-fledged license, you should opt for the Representative Office as it allows you to explore the market condition in depth.   Are you searching for the best part of starting a representative office in the UAE? In that case, you might be delighted to know that these offices are much easier to start because they are not used for core business purposes. If you want to know more about the benefits of starting your representative office in the UAE, you should definitely read the next section.   

Benefits of starting your representative office in the UAE

You can enjoy several benefits by starting your representative office in the UAE. Let us take a closer look at the top advantages of starting your representative office in this country:  

• You can enjoy a lot of tax advantages by starting your representative office as the UAE offers many tax benefits. In addition, you will have a limited tax liability and 0 per cent corporate tax if you begin your representative office in this country.
• By starting your representative office in the UAE, you can save money as the cost of setting up your representative office is comparatively lower than other types of companies in this nation. 
• You can also enjoy the flexibility of setting up a representative office with multiple shareholders. However, you must remember the fact that it has an upper limit of 50 shareholders. 
• You can also enjoy international expansion and global connections by starting your representative office in the UAE. 
• You can instantly begin your representative office in the UAE as the process of setting up a representative office is quicker and swifter. 

Documents needed to start your representative office in the UAE

After reading about the benefits of starting your representative office in the UAE, you might be desperate to kick start your representative office in this country. However, you must gather some documents before initiating the process to start this office as it is necessary as per office legal requirements in UAE. The following is the list of documents you need to begin your representative office in the UAE:  

• Added Government Approval
• Investors Passport Copies
• Power of Attorney Attested
• Memorandum of Association (MOA)
• Certificate of incorporation or Trade License
• Board of Resolution Attested
• Articles of Association (AOA)
• Local Agent Agreement (Notarized)

The process to start your representative office in the UAE

When starting your representative office in the United Arab Emirates (UAE), you should be ready to follow a few steps. The following are the steps you need to follow to begin your representative office in this country:  

1. Select a Local Service Agent

Initially, you should select and partner with the Local Service Agent (LSA) as it is essential to operate your representative office in the UAE. You should ensure that your chosen LSA is an Emirati, or a company incorporated in this country or completely owned by the Emiratis.  Remember, the Local Service Agent will represent your company before the government department and manage all necessary administrative tasks without holding any administrative role in your company. You can compensate your LSA through an agreed fee. Once a visa is issued for the General Manager, you can remove your Local Service Agent.   

2. Select your company name

 After selecting and partnering with your Local Service Agent, you should choose a reliable company name for your representative office. While registering your representative office name, you should use the same name as your parent company name.  However, you might meet some problems, like your desired name already registered or falling under the non-permissible name. In that case, you should include the Middle East in your company name. To tackle other issues at this step, we recommend you consult Flyingcolour Business Setup.    

3. Apply for the Initial Approval 

Next, you must apply for initial approval from the Ministry of Economy (MOE) as the approval from the Ministry of Economy is needed to start your representative office in the UAE. At this step, your Local Service Agent must submit a detailed overview of your company to be established in this country and its parent company, a certificate of incorporation, business activities, memorandum of association, and permission from shareholders and directors to the MOE for setting up your representative office in this country.   

4. Apply for the trade license

Lastly, your approval from the Ministry of Economy must be submitted to the Department of Economic Development (DED) to proceed with the process of starting your representative office in the UAE. At this step, your LSA will submit the required documents with the approval from MOE to the DED. After that, the DED will issue a commercial license. You can start your operation of a representative office by getting a commercial license.   

How can Flyingcolour Business Setup help you?

You can enjoy several perks by starting your Representative Office in the UAE. However, you must go through several complex steps to begin your representative office in this country. Flyingcolour Business Setup can help you at each step of opening your representative office.  To learn more about How to start a representative office in the UAE, book a free consultation with one of the Flyingcolour team advisors. Please note that this article was published on  14/06/2024 by the federal policies and updates at the time of writing. For the latest info please talk to our consultant.