Business Setup for UAE Mainland Branch or Representative Office of a Frence Company
Setting up a branch or representative office in the UAE Mainland is the best option for French companies looking to expand their presence in the Gulf region. This allows companies to operate in the UAE under their existing corporate identity without forming a new legal entity.
Important Points
A branch of a franch company is not a separate legal entity in the UAE. It is an extension of the parent company abroad.
The branch office can conduct all the business activities of the parent company except trading within the UAE Mainland. It requires approvals from various UAE government departments.
A representative office is also an extension of the parent company but cannot engage in any commercial or revenue-generating activities. Its function is to market and promote the parent company’s products or services in the UAE.
UAE Ministry of Economy approval is required for both branch and representative office setup.
A UAE national service agent must be appointed in both cases. This agent has no equity or ownership in the company.
A bank guarantee of AED 50,000, in favour of the Ministry of Economy, is required during the license issuance process.