If your business is growing faster than you expected and you’re ready to expand internationally, Dubai is probably one of the first places on your mind. And rightly so.
This city has transformed into a global hub, where companies from every continent come to scale, connect, and tap into a diverse customer base. Opening a branch office in Dubai isn’t just a business move; it’s a strategic decision that unlocks access to the Middle East, Africa, and Asia all at once.
Whether you’re expanding from the UK, India, Europe, or anywhere else in the world, this article will walk you through exactly how opening a branch office works in Dubai.
What Is a Branch Office in Dubai?
Before we jump into the steps, let’s cover the basics.
A branch office is an extension of your parent company. It’s not a separate legal entity; instead, it operates under the same name, same ownership, and same business structure as your main company in your home country.
This means:
- Your branch in Dubai can carry out the exact same activities as your parent company.
- The parent company holds 100% ownership.
- The branch is allowed to generate profit in Dubai and invoice clients locally.
- You must appoint a local service agent (LSA), but this person/business doesn’t own any part of the company.
The biggest advantage? You get full operational control in the UAE while expanding your global footprint without forming a brand-new entity.
Why Do Companies Choose Dubai for Branch Expansion?
There are many reasons international brands decide to open a branch office:
1. Global Business Location
Dubai offers instant access to markets in the GCC, Middle East, Africa, and Europe, all from one base.
2. Strong Brand Presence
Having a branch office in Dubai boosts trust. Clients see your brand as established, international, and credible.
3. International Workforce
Dubai attracts top talent from around the world, giving your company access to highly skilled professionals.
4. Business-Friendly Environment
Smooth regulations, digital government services, and investor-friendly policies make expansion smoother than in many other regions.
5. Tax Benefits
With no corporate tax on most free zone entities and attractive business incentives, the UAE is built for growth.
Whether you’re a tech company, consulting firm, trading business, creative agency, or manufacturer, Dubai has a place for you.
Step-by-Step Guide: Opening a Branch Office in Dubai
Let’s break down the entire process in a clean, easy way so you know exactly what to expect.
Step 1: Choose Between the Mainland and the Free Zone
Your first decision is where you want your branch to be registered.
Mainland Branch Office
A great choice if you want to:
- Operate anywhere in the UAE
- Work directly with government entities
- Serve any type of customer
- Have a more flexible business scope
Free Zone Branch Office
Ideal if you want:
- 100% ownership with no local requirements
- Office within a specific zone (DMCC, DIFC, DSO, IFZA, Dubai South, etc.)
- Customs benefits, industry-specific ecosystems, or special licensing
Choosing the right jurisdiction affects approvals, timelines, structure, and the cost of setting up a branch office in Dubai, so this step needs proper guidance.
Step 2: Get Initial Approval to Open a Branch Office
Once the jurisdiction is chosen, you apply for initial approval, which confirms that your international company is permitted to open a branch in Dubai.
This normally includes:
- Parent company documents
- Board resolution to establish the branch
- Passport copies of shareholders/directors
- Power of attorney
- Application form
Your parent company must be legally active and in good standing, so up-to-date documents are essential.
Step 3: Appoint a Local Service Agent (Mainland Only)
If you’re opening a mainland branch office in Dubai, the law requires that you appoint a Local Service Agent (LSA).
But here’s the important part:
- The LSA has no ownership in your company.
- They do not interfere in business operations.
- They simply act as a facilitator for government formalities.
In free zones, this step is not required.
Step 4: Prepare & Attest All Parent Company Documents
Because a branch is directly connected to your foreign company, the UAE government needs verified proof of your corporate legitimacy.
This means:
- Parent company incorporation documents
- Memorandum/Articles of Association
- Board resolutions
- Certificate of incumbency or good standing
Most of these must be:
- Notarised in your home country
- Attested by the UAE Embassy
- Stamped by the UAE Ministry of Foreign Affairs (MOFA)
This sounds like a lot, but once handled properly, it’s a straightforward process.
Step 5: Secure the Name Reservation & License Application
Even though your branch will operate under the same name as your parent company, you still need to reserve the name locally.
Your next step is applying for:
- Commercial license
- Activity approval
- Branch registration certificate
Step 6: Get External Approvals (If Required)
Depending on your activity, some branches need external approvals.
For example:
- Financial services → Central Bank or DFSA
- Legal consultancies → Legal Affairs Department
- Healthcare activities → Dubai Health Authority
- Engineering consultancies → Dubai Municipality
Most businesses won’t need special approvals, but if you do, the process is very structured.
Step 7: Lease an Office Space
Every branch office must have a physical presence in Dubai, either:
- A flexi-desk
- A shared office
- A private office
- A bigger dedicated workspace
This is required to issue your license and staff visas.
Free zones offer built-in office packages, whereas mainland locations give you more choices across Dubai.
Step 8: Final License Issuance
Once all documents, fees, and approvals are complete, you will receive your official Branch Office License.
This means your company can now:
- Operate legally in the UAE
- Sign contracts
- Hire employees
- Generate revenue
- Open a corporate bank account
You’re now officially a Dubai branch of your parent company.
Step 9: Apply for Your Corporate Bank Account
After licensing, you can apply for a business bank account with leading UAE banks.
They typically check:
- Company structure
- Shareholders’ backgrounds
- Nature of business
- Expected transaction levels
Good documentation and clarity make this stage smooth and quick.
Step 10: Start Operations & Hire Talent
Your branch office is now ready to operate.
You can:
- Hire staff
- Issue visas
- Onboard clients
- Start marketing
- Build your local presence
Dubai’s labour framework is transparent and employee-friendly, making it easy to attract global talent.
Is It Difficult to Open a Branch Office in Dubai?
Not at all, as long as you follow the right steps and have expert guidance. Most of the process is documentation-based, and once you align everything correctly, approvals move quickly.
If you’re wondering about the cost of setting up a branch office in Dubai, it largely depends on whether you choose a mainland or free zone, the type of activity, and the size of your office setup, but the process is predictable and structured.
Final Thoughts
Opening a branch office in Dubai is one of the smartest expansion strategies for companies that want to go global. You get immediate market access, global visibility, and a serious corporate presence, all while staying 100% owned by your parent company.
If expansion has been on your mind, Dubai is where momentum happens. With Vista Business Setup, opening a branch office in Dubai isn’t a maze; it’s a guided pathway because global expansion should feel like confidence, not complexity.
