Establish a Subsidiary in Dubai

Dubai is the most important Emirate in the UAE’s trading network. It is also a host to the major corporate organizations and companies that operate in several spheres of business. The legislation of Dubai’s government allows free trade, and this has made Dubai one of the most attractive Emirates for both local and foreign investors in the UAE. An investor can open onshore companies in Dubai or one of its free zones. Several foreign companies intending to establish its presence in Dubai have set up a branch office or a subsidiary company in Dubai.  The difference between a branch office and a subsidiary in Dubai is because of the autonomy the subsidiary has regarding the business operations.  On the contrary, the branch office is tied to the parent company and thus depends on the parent company to give guidelines while the subsidiary can conduct its operations in Dubai independently.

Steps for registering a subsidiary in Dubai

As per the government of Dubai regulations, all companies conducting business in Dubai are required to register with the Department of Economic Development (DED). Therefore, to establish a subsidiary in Dubai, the first step is to appoint a local agent who will handle the registration procedure in Dubai and also provide relevant advice to the foreign investors in Dubai. Our experts in company registration in Dubai will assist you with the setup process.

According to the Dubai Company Law, Foreign companies are allowed to register subsidiaries in Dubai under the form of limited liability companies. This is the most popular and most registered business in Dubai.  Some steps must be followed and adhered to when registering a subsidiary in Dubai, which includes the following.

  • Reservation of the company name
  • Obtaining approval for the business activities to be undertaken by the Department of Economic Development in Dubai
  • Notarizing and drafting of the articles and memorandum of association for the subsidiary in Dubai
  • Submitting the relevant information of the shareholders or the directors to the Department of Economic Development in Dubai

Upon completing the registration of a subsidiary in Dubai, the investor will be required to apply for a business trading license with the Dubai’s Chamber of Commerce and Industry.

Obtain a trading license for subsidiary in Dubai

To obtain the trading license for a subsidiary in Dubai there are some documents and information that must be submitted to the Dubai Chamber of Commerce and Industry in Dubai, which includes the following:

  • The original copies of the articles and memorandum of association for the subsidiary in Dubai
  • Trading license application form
  • A name approval letter issued by the Department of Economic Development in Dubai
  • The approval letter for the company issued by the Department of Economic Development
  • Passport copies of the shareholders or directors

The subsidiary in Dubai will also be required to obtain clearance from the Municipality Building Department in Dubai. This is because the subsidiary must have the company’s registered office in the Dubai.

For information and guidelines for the trade licenses available for setting up subsidiaries in the Dubai, please contact our specialists in Quantum Auditing. You can depend on our experienced agents for accounting services also.