Branch Licence in UAE Complete Guide 

A Branch licence in UAE allows a foreign company branch in UAE to operate in the Emirates without forming a new legal entity. Instead of creating a separate business, the branch works as an extension of the parent company.

Since the ownership law changes, most sectors now allow 100% foreign ownership. This makes a UAE branch office setup one of the fastest and safest ways for global companies to enter the Middle East.

By 2024, the UAE crossed 1 million registered businesses, driven by reforms under the Commercial Companies Law and Ministry of Economy policies. When setting up a UAE branch for international companies, the benefits include rapid entry into the market, simplified operational procedures, and complete ownership.

This guide for 2026 will cover the Branch licence in UAE regulations, expenses, tax considerations, branch banking, and instructions for setting up in the most straightforward terminology available.

UAE Branch Office Setup Structure Selection

Optimum structure selection will eliminate wasted time and expenses and keep compliance risk at a minimum.

Select a Mainland Branch licence in UAE if you:

• Directly sell to clients in the UAE
• Participate in public sector and/or public-private partnership opportunities.
• Deliver any form of service(s) in the UAE.
• Require a physical service delivery location and/or an operational branch office.

Select a Free Zone Branch License UAE if You:

• Primarily service clients outside of the UAE
• Are you looking for tax incentives
• Operate trade, technology, consulting, finance, or other service sector activities.
• Prefer simplified procedures and a cost-effective approach to branch licensing.

Select an LLC Instead of a Branch if:

• You intend to insulate or shield the parent company from UAE-associated risks.
• You have plans to divest or liquidate the UAE business in the foreseeable future.
• You want the LLC to have its own completely autonomous corporate or legal personality.

Permitted Activities with a UAE Branch License

All activities of a UAE branch are governed and constrained by the business license of the parent company.

This means:

• The same company name
• The same business activities
• The same legal responsibilities

Foreign Branches Under Commercial Companies Law

A foreign company branch in UAE can be opened for approved activities.

A UAE branch can:

• Sign contracts in the UAE
• Invoice clients
• Hire employees
• Sponsor residence visas
• Rent offices
• Bid on private and public contracts (if permitted)

Important Risk to Know

Any debt, lawsuits, or penalties in the UAE fall on the parent company worldwide.

Branch Office vs LLC in UAE vs Representative Office

This distinction is crucial.

Branch Office

• Receives revenue
• Acts as a parent company
• The parent company bears all the risk

Representative Office

• Revenue is not permitted/generating
• Can only do marketing and promotion
• The parent company still bears all the risk 

UAE Subsidiary (LLC)

• Acts as a separate legal entity
• Can earn revenue
• The parent company’s risk is limited to the share capital

A lot of international companies start with a branch license, and as their business expands, they convert to an LLC.

Key UAE Laws for Foreign Branch Offices

Foreign branches in the UAE have specific rules stemming from recent governmental updates. These rules assist international businesses by providing a legal framework to set up operations without the risk of incurring penalties.

Commercial Companies Law

Decree-Law No. 32 of 2021, still in effect today, lays down the foundational rules about the operation of branches. Branches face the following legal obligations:

• Complete only licensed commercial activities.
• Maintain transparent financial records within the United Arab Emirates.
• Designate a local branch manager by a decision of the parent company.
• Present government authorities with audited bank documents upon request.

This legislation fosters confidence.mUAE hit 1 million companies by 2024 thanks to these straightforward rules.

Foreign Ownership Reforms

Decree-Law No. 26 of 2020 changed everything. It ended the old rules, needing UAE partners for most work.

Now, branches get 100% foreign control in open sectors. No local shares required. This opened the UAE markets to global firms. Foreign investment jumped 30% since 2020.

Mainland vs Free Zone Branch UAE: Pick the Right One

Choose based on your customers and goals. Each type fits different business plans.

Mainland Branch License

Department of Economic Development (DED or DET) issues these. Dubai uses DET; other emirates use DED.

Best choice when you:

• Sell products directly to UAE shops and people
• Bid on government or state company contracts
• Need stores, offices, or service spots anywhere in the UAE
• Plan long-term local growth

Mainland gives full UAE market access. But expect more paperwork and fees.

Free Zone Branch License

Each free zone authority approves its own, like DMCC for trade or DIFC for finance.

Optimal selection when you:

• Primarily serve overseas clients and export 
• Seek the lowest taxation and the quickest setup 
• Operate in technology, finance, or trading centres 
• Require full 100% ownership without partners 

Free zones reduce costs by 65% compared to the mainland. However, branches remain within the border of the zone.

Mainland Branch vs Free Zone Branch: Comparison Table

Dual License Rules for Mainland Access

Some free zones allow limited mainland work through dual licensing.

Examples:

• Dubai: DET permits for selected zones
• Abu Dhabi: TAMM dual licenses
• DMCC: Limited mainland access

Approval depends on:

• Activity type
• Zone rules
• Additional fees

There is no automatic approval.

How to Obtain a Dubai Branch License: Step-by-Step Process

Dubai DET handles mainland branch licenses. This guide follows the official 2026 rules from the Department of Economy and Tourism. Global companies engage in this method for entering the UAE market. They will require 4-8 weeks to complete this process with the appropriate documentation.avyanco+1

Step 1: Documentation from Parent Company (Week 1)

Home country documentation is required to show that the company is legal and can work in Dubai.

UAE branch licence requirements:

• Certificate of Incorporation (company birth paper)
• Memorandum and Articles of Association (company rules)  
• Good standing certificate (proves the firm is active)
• Board Resolution (a vote from the board to approve the Dubai branch and designate a manager)
• Manager’s passport and visa (either a visit or a residence visa is okay)

Step 2: Name Reservation (Day 3-5)

• Names are reserved with the DET portal or with an agent. All names must be the same as the parent company, and then add “Dubai Branch”.
• Approved “branch names” are: “ABC Corp Dubai Branch” or “XYZ Ltd UAE Branch”.  
• Names that are more creative or that need additional approvals will take an additional 7 days to process.

Step 3: Local Service Agent for Branch Office Agreement (Day 6)

• There are new reforms from 2020 that eliminate the need to use trade agents for most businesses. 
• Nevertheless, a Local Service Agent for the UAE is still necessary.

Step 4: Ejari Office Lease (Days 7-10)

• Lease a real office in Dubai. For branch offices, a Flexi-desk is acceptable (25,000 AED/year).
• Ejari is the document that registers the government’s tenancy contract. You will need to have Ejari in order to have license approval.

Step 5: Pre-Approval to Ministry of Economy (Days 11-14)

• You will need to submit to the MOE online.
•  They will check to make sure the activities of the parent company correspond with the list of activities allowed in the UAE.

Reasons for Denial:

• The parent makes a mistake (the banking branch is unable to do trading)
• The sector is limited, no local partner
• Two years of audited accounts are missing

Step 6: Application Final DET (Days 15-21)

• Everything to DET portal: Attested docs, Ejari, MOE approval + fees AED 15K-50K. 
• Activity fit, office, manager review. 92% feedback if documents are complete. 

Step 7: Make payment and obtain the license (Days 22-28)

• Payment order is generated, Pay fees for license + chamber, E-license is ready. Print and frame it.
• First Year Total Expenses: AED 80K-120K (license AED 25K + attest AED 15K + office AED 45K + visa AED 18K)

Step 8: Compliance, Bank, Visas (Days 29-56) 

• Establishment Card (AED 3K)
• Sponsor 4 visas (each AED 4.5K)
• (Corporate) bank (start early, 6-12 weeks)
• VAT Branch office registration in UAE if sales > AED 375K

Abu Dhabi Branch Setup

The ADDED stairs via TAMM.

Main differences:

• Minimum capital required for some activities
• Office lease via Tawtheeq
• Processing time is generally longer

Most suited for:

• Projects for the federal government
• Abu Dhabi state agencies
• E and I (energy and infrastructure) industries

Best Free Zones for Branch Offices 2026

Pick the correct free zone for your branch. Each UAE zone fits different business types. Match your work to zone strengths for fast setup and low costs. All offer 100% foreign ownership and 0% tax on qualifying income.

Finance & Professional Services Zones

DIFC (Dubai International Financial Centre)

• Best for: Banks, law firms, accounting, and fintech.
• Why choose: English ordinary law courts. Own regulator (DFSA). Global finance hub.
• Branch perks: Fast licensing (2 weeks). 6 visas per flexi-desk. AED 35K+ setup.
• Drawback: Higher fees for premium status.

ADGM (Abu Dhabi Global Market)

• Best for: Investment funds, insurance, wealth management.
• Why choose: English law. Federal tax links. Abu Dhabi government contracts.
• Branch perks: Dual licensing to the mainland. 4 visas minimum. AED 40K setup.
• Drawback: Longer bank approvals (8 weeks).

Trading & Logistics Zones

DMCC (Dubai Multi Commodities Centre)

• Best for: Gold, diamonds, tea, crypto trading, solar exports.
• Why choose: World’s top commodity hub. 90K+ firms. Dual license to the Dubai mainland.
• Branch perks: Green License ready. 6 visas/flexi-desk. AED 22K setup.

JAFZA (Jebel Ali Free Zone)

• Best for: Shipping, warehouses, manufacturing branches.
• Why choose: Next to the world’s biggest port. 10K+ logistics firms.
• Branch perks: 100% export focus. Lowest warehouse rent. AED 18K setup.
• Visa quota: 4 per flexi-desk, unlimited with warehouse.

Free Zone Comparison Table 2026

UAE Branch Licence Cost 2026

Dubai Mainland (Estimated)

• License & approvals: AED 15,000–50,000
• Ministry fees: AED 3,000
• Bank guarantee (refundable): AED 50,000
• Attestation & translation: AED 10,000–15,000
• Chamber fees: AED 2,000–3,000

Total Year 1: AED 80,000–120,000 (excluding rent and visas)

Free Zone Branch Costs

• Low-cost zones: from AED 10,000
• Premium zones: AED 100,000+

When a Local Agent Is Still Required?

Most branches no longer need local agents.

But for restricted sectors, an agent is required:

• No ownership
• No profit share
• Admin role only

Always define:

• Fees
• Scope
• Exit terms

How does the UAE Corporate Tax Apply to Branches?

Under Corporate Tax Law (Decree-Law No. 47 of 2022):

• Income up to AED 375,000: 0%
• Income over AED 375,000: 9%

Branches need to:

• Register with the Federal Tax Authority
• Submit annual tax returns
• Comply with transfer pricing

Free Zone Tax Benefit

Branches in qualifying Free Zones may benefit from a 0% tax rate provided all conditions are met.

Why UAE Bank Account Takes Time?  

Opening a bank account for a branch usually takes longer than getting the license.

Estimated Timeline

• Initial account review: 1-2 weeks  
• Due Diligence: 3-6 weeks  
• Final Approval: 2-4 weeks  
• Total: 6-12 weeks (may take longer for high-risk industries)

Common Reasons for Delays

• Complex ownership structures
• No UAE office or local manager
• Business model lacks clarity
• To prevent delays, begin the bank setup process as early as possible.

Branch Licence in UAE vs. LLC: Risk Control Comparison

Branch License

• No separate legal status
• Full liability on the parent company
• Quicker to establish

LLC

• There is a separate UA entity
• Liability is limited to the investment
• More favourable for long-term expansion
• Many businesses initially establish a branch and subsequently convert to an LLC.

Launch Your UAE Branch Today

Open your UAE branch with no unnecessary costs or delays.

Wrong choices add months and AED 50K+ in fees. Thoughtful planning gets you trading in 8 weeks with full compliance. Follow these proven steps used by 90% of successful foreign branches.​

Three Critical Success Factors

• Match Jurisdiction to Real Clients
• Plan Bank Timeline Early (6-12 Weeks)
• Perfect Your Papers First Time

Our business setup experts in Dubai can handle the process for you. They are licensed business setup consultants in Dubai with over 12+ years of experience in streamlining the Business setup in Dubai for people. 

FAQs – Branch Licence in UAE 

Q1: Can foreign companies open a UAE branch?

Yes. Any registered foreign company can set up a branch under the Commercial Companies Law (Decree-Law No. 32/2021). Must match parent activities and get activity approval from DET, DED, or free zone authority. No nationality limits.

Q2: Do UAE branches need a local UAE partner?

No for most sectors. Post-2020 reforms (Decree-Law No. 26) allow 100% foreign ownership. Local Service Agent needed only for restricted activities like banking, defence, telecom (Cabinet Resolution 55/2021). Agent role = paperwork only, no ownership.

Q3: How long does the UAE branch setup take in 2026?

Licensing: 4-8 weeks. Bank account adds 6-12 weeks. Total operational timeline = 3 months. Free zones faster (1-3 weeks license). Attestation delays kill 60% of first apps. Start bank prep Day 1.

Q4: Are branch profits taxed in the UAE?

Yes, 9% corporate tax for UAE branches over AED 375K profit. 0% first AED 375K. Free zone branches qualify for 0% on qualifying income if substance rules are met (office, staff, approved activities). Must register with FTA and file returns.

Q5: Can profits leave the UAE freely?

Yes, full repatriation. No withholding tax. No currency controls. Branches send 100% profits to the parent company anytime. Banks like Emirates NBD process transfers the same day once the account is live.

Conclusion: Is a UAE Branch License Right for You?

A UAE branch license is ideal for global companies that want fast entry, full ownership, and direct control. It works best for professional services, project-based work, and international firms testing the UAE market.

With the proper planning, the UAE branch office setup enjoys:

• Access to UAE clients
• Corporate tax clarity
• No foreign ownership limits
• Full profit repatriation

Whether you choose a Mainland vs free zone branch UAE, expert setup ensures smooth licensing, faster banking, and long-term compliance.

Contact Business setup experts in Dubai for more help!