Interested in opening a branch in Dubai in 2026? This article is for you! Explore the main characteristics, formalities, and other relevant details about this type of entity, which can be registered with the help of our specialists in company formation in Dubai.
| Quick Facts | |
|---|---|
| Applicable legislation | For foreign countries |
Best used for | – banking, – insurance, – financial operations |
Minimum share capital | No |
| Time frame for the incorporation (approx.) | Around 2 months |
| Management | Local |
| Legal representative required | Yes |
| Local bank account | Yes |
| Independence from the parent company | Dependent on the parent company |
| Liability of the parent company | Full liability on the branch office’s debt and obligations |
| Corporate tax rate | 0% – 55% (max. value for production of oil and gas or extraction of other natural resources) |
| Possibility of hiring local staff | Yes |
Table of Contents
What are the main features of a branch in Dubai?
- it is an extension of the parent company,
- it has no separate legal entity,
- must conduct only the activities of the foreign company,
- it operates under the same business name as the parent company,
- it is controlled by the foreign company that is also in charge of the debts & liabilities.
Can a branch be 100% owned by foreigners?
Yes.
What are the key conditions to establish a branch in Dubai in 2026?
- applicants must select the jurisdiction: mainland Dubai or a free trade zone for branch incorporation.
- approval must be obtained from the Department of Economic Development in Dubai (DED) and specific authorities from Dubai’s free zones.
- must open a corporate bank account in Dubai.
What are the documents required for opening a branch in Dubai?
- a declaration/board resolution stating the decision to open a branch in Dubai,
- copy of the Certificate of Incorporation of the parent company,
- articles & Memorandum of Association of the branch,
- a “No-Objection Certificate (NOC) issued by the foreign company,
- proof of a registered business address in Dubai,
- proof of office lease contract.
IMPORTANT! All documents must be notarized & legalized at the UAE Embassy in the country of origin. Attestation is then done at the Ministry of Foreign Affairs in the UAE.
Here is an infographic with details on this topic:
Is a minimum share capital required for a branch in Dubai?
Not imposed in mainland Dubai. However, free zone branches might require a minimum share capital of at least AED 50,000.
Is a representative agent needed for opening a branch in Dubai?
Yes. This is known as a “Local Service Agent or LSA” who is needed for opening a branch in mainland Dubai. He or she must be a UAE citizen.
Where is a branch registered in Dubai?
The Ministry of Economy and the Chamber of Commerce in Dubai.
Do I need a business license for a branch in Dubai?
Depending on the activities you are going to carry out as a branch in Dubai, it is necessary to apply for a license. A trading license is general and allows the implementation of many activities.
Are there any extra requirements for setting up a branch in Dubai in 2026?
Yes, even if the branch uses the same trade name as the parent company, a verification & reservation will be necessary. This process is done with DED in Dubai.
We have also created a video presentation on the advantages of a Dubai branch:
What are the reporting requirements for branches in Dubai?
- accounting records,
- annual audits,
- following & reporting on Environmental, Social, and Governance (ESG) metrics, etc.
How is a branch in Dubai levied?
- 9% as corporate income tax if annual income exceeds AED 375,000,
- 20% as CIT for branch banks in Dubai,
- 55% as CIT for oil and gas companies with branches in Dubai.
What is the registration fee for a branch in Dubai?
- Free trade zones – from AED 10,000 to AED 25,000,
- Mainland Dubai – from AED 12,000.
What are the benefits of a branch in Dubai?
- 100% foreign ownership,
- no local partner required for branch formation in Dubai,
- favorable tax regime,
- lower incorporation costs,
- financial strength and reputation as the parent company,
- 0% on profit repatriation,
- no currency restrictions when having a branch in Dubai,
- easy access to business markets & hubs in Asia, Africa, and the Middle East.
Additional services
We can also help you if you want to register a branch in other jurisdictions. Our partners from BridgeWest Cayman Islands are experienced in opening a company in the Cayman Islands, a process that takes 4 working days.
If you need to open a Dutch branch of your company, our partners can assist you with the incorporation procedure that takes 4 weeks, compared to 2 months in Dubai.
Ready to open a branch in Dubai in 2026? Explore our company formation services by contacting our Dubai agents.