Key takeaways
- A branch of foreign company (Dubai) is the foreign parent itself, licensed to work on the mainland. The Department of Economy and Tourism (DET) issues the licence; the Ministry of Economy and Tourism (MOET) approves it and enters it in the Foreign Companies Register (Federal Decree-Law No. 32 of 2021, Arts. 336 and 337).
- MOET charges AED 3,500 for initial approval and AED 7,500 for registration, then AED 7,500 a year. Registration is due within one month of the DET licence; MOET’s card lists an AED 100,000 penalty if it is late.
- The AED 50,000 bank guarantee has gone (Ministerial Resolution No. 138 of 2024, per UAE law firms); MOET’s current card no longer lists it, though one older page still does.
- No UAE national agent is needed for a foreign company branch (MOET FAQ 20).
- Parent documents must be attested and translated: incorporation certificate, articles and a board resolution appointing the manager, legalised up to the UAE Embassy and MOFA, then translated into Arabic in the UAE.
- Branch vs subsidiary is a liability decision. A Dubai branch has no separate legal personality, so the parent is liable without limit; a subsidiary LLC limits it.
- Tax: a foreign company branch that is a permanent establishment registers for corporate tax within six months and pays 9% above AED 375,000. Branches of UAE companies are in the parent’s return.
- Dubai free zone companies use Executive Council Resolution No. 11 of 2025: a free zone branch licence (AED 10,000 a year for a branch operating out of the zone) or the Free Zone Mainland Operating Permit (AED 5,000 for six months).
A branch of a foreign company in Dubai is an extension of a company incorporated abroad, licensed by the Department of Economy and Tourism to carry on the parent’s activity on the Dubai mainland and registered in the Ministry of Economy and Tourism’s Foreign Companies Register, with no legal personality of its own and with the parent fully liable for its obligations. It trades under the parent’s name, is run by a manager appointed by the parent’s board, keeps its own books, and must have its accounts audited every year by a UAE-registered auditor.
This guide covers the whole life of a Dubai branch: branch vs subsidiary vs representative office, the rules behind it, the MOET and DET steps, attestation, the bank guarantee, free zone branch routes under Resolution No. 11 of 2025, liability, tax, visas, fees, annual compliance and closure. Where official pages disagree, we show both.
It is part of our mainland series. For the full set-up route of a new company, start with our mainland company formation guide. For all legal forms side by side, see types of companies in Dubai. If you would rather hand the file over, our company formation support team runs it end to end.
Branch of foreign company Dubai at a glance
Four different parents can open a branch on the Dubai mainland, and each follows a different path. The table gives the short answer; every row is explained below with its source.
| Parent company | Who licenses the Dubai branch | Federal registration | Headline government fees | Liability |
|---|---|---|---|---|
| Company incorporated abroad | DET (branch of a foreign company) | MOET initial approval, then Foreign Companies Register within one month of the licence | MOET AED 3,500 + AED 7,500; renewal AED 7,500 a year; DET licence lines on top | Parent fully liable |
| UAE mainland company (Dubai or another emirate) | DET (branch of a national company) | None at MOET for foreign companies; the parent’s own licence and register entry | DET initial approval, licence and register lines | Parent fully liable |
| Dubai free zone company | DET under Executive Council Resolution No. 11 of 2025 | Prior approval of the free zone authority | AED 10,000 a year (branch operating out of the zone); AED 5,000 per six-month permit | Parent fully liable (Art. 5(b), 6(b)) |
| Foreign company wanting only a presence, no trading | DET (representative office) | MOET registration; no audited accounts required at renewal | MOET registration and renewal lines | Parent fully liable; activity limited to market study (Art. 339) |
Two other points apply to every route. Dubai Law No. 13 of 2011 lists “branch of a national or foreign company or of a company operating in a free zone” as one of the four permitted legal forms of business (Art. 14(d)), so a branch is a normal Dubai licence, not a special exception. And the branch must have real premises in Dubai (Art. 17), with Ejari, like any mainland licence.
Branch of foreign company Dubai: how MIRDXB PRO helps
Groups planning a Dubai branch usually ask three things: is a branch the right structure, which parent documents to attest, and how long it takes. We answer in writing first, then run the file. We are an Amer and Tasheel partner in Al Barsha 1, Dubai.
What we do
- Compare branch vs subsidiary for your activity: liability, documents, audit, tax and cost.
- Give the parent a document list before anything is notarised: resolution wording, the manager’s power of attorney and which certificates to attest.
- Run the MOET and DET files: approvals, premises and Ejari, the DET licence and MOET registration within the one-month window.
- Set up the branch as an employer: Dubai Chambers membership, MOHRE and GDRFA establishment cards, and the manager’s and staff visas.
- Keep the foreign company branch compliant: MOET renewal, DET renewal, amendments and, when the time comes, closure.
- Handle the free zone branch route: the DET licence or permit under Resolution No. 11 of 2025.
How it works
- Message us on WhatsApp with the parent’s country, the activity, expected staff and where the manager is.
- We reply in writing with the recommended structure, the document list, the order of steps, the government fees and our fee.
- The parent prepares and attests the documents in its own country, using our wording; we check each one before it leaves.
- We complete the Dubai branch file and send you every receipt.
What it costs
Government fees are passed on at cost, on the authority’s own receipt: MOET’s initial approval and registration, DET’s voucher, MOFA attestation, legal translation, Ejari and Dubai Chambers. Our own fee depends on the route, the number of documents and the visas, and is quoted in writing before we start. Our general approach to pricing is on the fees page, and the full list of mainland set-up costs is in our mainland business setup cost guide.
Why groups use us
- We publish our sources and tell you where official pages disagree.
- We tell you when a branch is the wrong answer and a one-person LLC fits better.
- We work under a power of attorney for parents and managers who are still abroad, where the step allows it.
- Office in Al Barsha 1, open Monday to Thursday and Saturday 09:00 to 18:00, Friday 09:00 to 12:00.
The service itself is described on our company formation support page, and ongoing filings are covered by our corporate PRO services.
Branch vs subsidiary vs representative office: which structure fits
A foreign group has three ways into the Dubai mainland. The choice decides who is liable, what is filed every year and how tax works. The branch vs subsidiary question matters most, because both can trade.
| Point | Foreign company branch | Subsidiary (LLC or one-person LLC) | Representative office |
|---|---|---|---|
| Legal personality | None; it is the parent (Art. 337(2) treats the branch as the parent’s domicile in the UAE) | Separate company | None; it is the parent |
| Who is liable for debts | The parent, without limit | The subsidiary, up to its assets; shareholders up to their capital | The parent, without limit |
| What it may do | The parent’s activity, as written on the DET licence | Any activity on its licence | Only “the study of markets and production capabilities without engaging in any commercial activity” (Art. 339) |
| Name | The parent’s name | A new trade name, which may echo the parent’s | The parent’s name |
| Founding documents | Parent documents, attested and translated; board resolution; manager’s power of attorney | Memorandum of association in Arabic; parent documents as shareholder, attested and translated | Parent documents, attested and translated |
| Federal registration | MOET Foreign Companies Register, renewed yearly | DET commercial register; no MOET foreign register | MOET Foreign Companies Register, renewed yearly |
| Audit | Independent balance sheet and UAE-registered auditor (Art. 338) | Every LLC must appoint an auditor (Art. 102) | Excluded from Art. 338; no audited accounts at MOET renewal |
| Corporate tax | Registers as a non-resident with a permanent establishment, within six months | Registers as a resident company, within three months | Often preparatory or auxiliary; whether it is a permanent establishment depends on facts |
| Owner or partner visas | No shareholders in the Dubai branch; staff, including the manager, are employees | Individual shareholders may use the partner route; staff are employees | Small staff as employees |
| Leaving Dubai | Cancel the DET licence and the MOET registration; the parent remains liable for anything left behind | Liquidation of a company, with its own procedure | Cancel licence and MOET registration |
When a branch is the better answer
- Clients or regulators want the parent itself. A Dubai branch trades under the parent’s name and balance sheet, which some contracts and regulated activities favour.
- No capital or memorandum. A Dubai branch has no share capital to inject and no memorandum of association to amend.
- The group is testing the market and accepts that the parent carries the risk meanwhile.
When a subsidiary is the better answer
- Liability matters. A claim against a Dubai branch is a claim against the parent; a subsidiary ring-fences it.
- Someone else will invest. A subsidiary can take a local or third-party shareholder; a branch cannot.
- The annual MOET layer is not wanted. A foreign company branch renews a second, federal registration every year, with its own penalties.
- The activity is one that may be foreign-owned. Since 2021 most activities allow 100% foreign ownership of an LLC; check yours in our 100% foreign ownership in Dubai guide.
When a representative office is enough
If the group only wants to research the market and promote the brand, a representative office is the lightest option. It cannot invoice or trade: its object is “limited to the study of markets and production capabilities without engaging in any commercial activity” (Art. 339). If sales are planned soon, start with a Dubai branch or a subsidiary.
Choose a branch when the parent’s own name and balance sheet are the point; choose a subsidiary when the parent wants its liability limited to what it puts into Dubai.
The law behind a foreign company branch in Dubai
Three layers of rules apply to a foreign company branch: federal company law, a MOET resolution on registration, and Dubai’s licensing law.
Federal Decree-Law No. 32 of 2021 on Commercial Companies
- Article 3 applies the law’s foreign company provisions to foreign companies that “establish a branch or representative office thereof in the State”.
- Article 335 applies the law, except the provisions on incorporation, to foreign companies that conduct their activities in the UAE.
- Article 336(1): other than companies licensed in free zones, foreign companies “may not conduct an activity inside the State or establish an office or branch therein without a licence to this effect by the Competent Authority subject to the approval of the Ministry”. The licence fixes the activity.
- Article 336(2): if a branch starts work before the procedures are complete, “the persons who conduct such activity shall be severally and jointly liable”.
- Article 337: no foreign company may operate unless it is entered in the Foreign Companies Register at the Ministry. The branch “shall be deemed as its domicile in respect of its activity in the State”, UAE law governs its activity, and on closure the Ministry deletes it from the register.
- Article 338: branches, but not representative offices, must keep “an independent balance sheet and an independent profits and losses account” and appoint an auditor registered in the UAE.
- Article 339: representative offices are limited to market study, with no commercial activity.
These article numbers are from the 2021 text on MOET’s website. The law was amended in 2025 (Federal Decree-Law No. 20 of 2025); we found no change to these provisions, but check the consolidated text on uaelegislation.gov.ae before quoting an article in a contract.
Ministerial Resolution No. 138 of 2024
MOET’s procedures for registering each branch of a foreign company or representative office are in Ministerial Resolution No. 138 of 2024, which replaced Resolution No. 377 of 2010. Its text is not on an official site we could read, so these points come from UAE law firm briefings (Afridi & Angell, Hadef & Partners):
- MOET initial approval comes before the local licence; registration follows within one month of the licence, and the certificate is valid for one year.
- Documents must be attested up to the UAE Embassy and the UAE Ministry of Foreign Affairs, and translated into Arabic and attested by the Ministry of Justice. MOET may accept a temporary registration while attestation is completed, for up to three months.
- The AED 50,000 bank guarantee and the local agent requirement were removed.
- Every foreign company branch appoints a UAE-licensed auditor for one-year terms, up to six consecutive years.
- A branch or office must have a physical address in the UAE; the Hadef briefing says virtual offices are not permitted.
- Registration can be suspended for one to three consecutive years.
Dubai Law No. 13 of 2011
Dubai’s licensing law makes a branch one of four legal forms of business (Art. 14(d)), requires every licensee to specify suitable premises (Art. 17), and lets a business licensed in a free zone “open branches within the Emirate in accordance with the procedures adopted by the DED” (Art. 23(b)). Free zone branches now follow Executive Council Resolution No. 11 of 2025, explained later in this guide.
No national agent
The old requirement for a foreign company branch to appoint a UAE national agent was repealed by Federal Decree-Law No. 26 of 2020. MOET’s FAQ (question 20): “No, a UAE national agent is not required to be appointed by foreign companies wishing to conduct their activities within the UAE.” Our local service agent guide explains who still needs one.
How to register a branch of a foreign company in Dubai: step by step
MOET and DET each wait for the other at different points, so the order matters. This sequence fits both sets of published requirements.
Step 1: the board resolution and power of attorney
The parent’s board resolves to open the Dubai branch, names its manager and lists the activities. DET’s archived initial approval card asks for exactly this: “The parent company’s board resolution to open a branch in Dubai, appoint the manager and list the company’s activities.” The parent also grants the manager a power of attorney to act for it in the UAE. MOET’s older registration card asks for a “duly attested authorization granted to the director together with true copy of his passport”.
Step 2: attest and translate the parent documents
The incorporation certificate, articles and resolution go through the attestation chain abroad, the UAE Embassy and MOFA, then Arabic translation. This is usually the longest step (see the next section).
Step 3: trade name and DET initial approval
On Invest in Dubai, reserve the trade name (the parent’s name) and apply for DET initial approval with the legal form “branch of a foreign company”. DET’s fee schedule has a separate line for foreign or numeric trade names: AED 2,000 (Executive Council Resolution No. 13 of 2011, Schedule 1, item 7), against AED 200 for an ordinary name. Initial approval itself is AED 100 (item 4). Name rules are in our trade name registration guide and the approval stage in our initial approval guide.
Step 4: MOET initial approval
Invest in Dubai’s list of external approvals names the Ministry of Economy for “Branch of a foreign company / Representative office”, and u.ae lists “Initial approval for foreign entity branch” among the approvals given by the Ministry’s Auditors Department. MOET’s card lists AED 3,500 and three working days, with the DET name or initial approval, the parent’s incorporation certificate and the board decision. The foreign company branch may not trade on initial approval alone.
Validity is one of the points where sources differ: MOET’s older initial approval card says four months, while the law firm summaries of Resolution No. 138 of 2024 say eight months. Plan on the shorter period.
Step 5: other approvals the activity needs
If the activity is regulated (health, education, media, transport and so on), the regulator’s approval comes before the licence. Our Dubai mainland licence types guide lists the regulators by activity.
Step 6: premises and Ejari
Lease premises suited to the activity and register the lease with Ejari. Dubai Law No. 13 of 2011 requires premises (Art. 17), and the Resolution No. 138 summaries say virtual offices are not accepted. See our office space for a trade licence guide.
Step 7: DET licence
With MOET’s initial approval, any sector approvals and Ejari, DET issues the Dubai branch licence. DET’s base licence fee is AED 600 (item 1), plus the activity and register lines on the voucher. u.ae says the licence voucher must be paid within 30 days.
Step 8: MOET registration within one month
This is the step groups forget. For MOET registration, the current “Foreign Entity Branch Registration” card (updated 25 September 2026) says the application must be submitted “within one month” of the licence, costs AED 7,500, takes one working day, and lists an “Administrative penalty: AED 100,000” if registration is not completed in that month. Documents: the economic licence from DET, the parent’s certified commercial registration, and a letter from the appointed auditing firm (not required for representative offices). Applications rejected three times, or left incomplete for 30 working days, are closed automatically.
Step 9: Chamber, establishment cards and bank
Register with Dubai Chambers, open the MOHRE and GDRFA establishment files, and open the Dubai branch’s bank account. Membership rules are in our Dubai Chamber membership guide, the immigration file in our establishment card guide, and banking in our corporate bank account guide.
Step 10: tax registration and visas
Register for corporate tax within six months of the permanent establishment arising, and for VAT if thresholds are met, then issue visas (both covered below).
Parent company documents: attestation, legalisation and translation
Almost every delay on a foreign company branch comes from the parent’s paperwork. MOET’s FAQ lists “Copy of the articles of incorporation and commercial registration, attested by the UAE embassy and the Ministry of Foreign Affairs”, and the Resolution No. 138 summaries add Arabic translation.
The documents usually requested
| Document | Who asks for it | Notes |
|---|---|---|
| Certificate of incorporation or commercial registration extract of the parent | MOET (initial approval and registration); MOET FAQ 6 | Recent certified copy from the companies registry. MOET’s renewal card asks for a fresh certificate of incumbency or extract each year. |
| Articles or memorandum of association of the parent | MOET FAQ 6 (“articles of incorporation”) | Certified by the registry or a notary. |
| Board resolution to open the Dubai branch, appoint the manager and list the activities | DET initial approval (archived card); MOET initial approval card | One resolution covering all three points keeps it to one commercial document at MOFA. |
| Power of attorney for the Dubai branch manager | MOET (older registration card: “duly attested authorization granted to the director”) | Signed before a notary in the parent’s country, then attested like the rest. |
| Manager’s passport, and Emirates ID if resident | MOET FAQ 6; DET | MOET’s FAQ also mentions “a no-objection letter from his current sponsor” if the manager already works for another UAE employer. |
| Latest audited financial statements of the parent | Resolution No. 138 summaries | Some briefings list them for the first application; MOET’s current cards do not. Have them ready. |
| Auditor’s appointment letter | MOET registration card | From a UAE audit firm registered with the Ministry; not for representative offices. |
The attestation chain
The UAE is not a party to the Hague Apostille Convention, so an apostille alone is not enough. The chain for company documents is: notary or registry abroad, that country’s foreign ministry or apostille authority, the UAE Embassy there, then the UAE Ministry of Foreign Affairs. Our attestation process guide sets out the order stage by stage, and our apostille vs attestation guide explains where an apostille still fits.
MOFA charges AED 2,000 per commercial document, so a typical four-document file for a branch of a foreign company is AED 8,000 at MOFA alone. Our document attestation service handles the UAE stages.
Translation
Translation comes after attestation, by a Ministry of Justice legal translator; under Federal Decree-Law No. 22 of 2022 (Art. 3) other translations are not certified. Our legal translation service works from the attested originals.
Habits that save weeks
- Draft the resolution in Dubai first, naming the Dubai branch, the manager, DET’s exact activity names and banking powers.
- Keep one purpose per document, or MOFA may charge it as several.
- Match every spelling of the parent’s name, down to “Ltd” or “Limited”.
- Order a fresh registry extract close to the attestation date.
- Know the fallback: MOET may accept a temporary registration while attestation finishes, for up to three months (Resolution No. 138 summaries).
The bank guarantee: removed, but one page still shows it
For years a foreign company branch had to lodge an AED 50,000 bank guarantee with the Ministry. That requirement is gone, but one MOET page has not been updated.
| Source | What it says | Status |
|---|---|---|
| MOET, “Foreign Entity Branch Registration” card (updated 25 September 2026) | Fees: initial approval AED 3,500, registration AED 7,500. Documents: licence, parent’s certified registration, auditor letter. No bank guarantee listed. | Current card |
| MOET, older “Register Branch of Foreign Establishment” page | “Bank Guarantee (AED 50,000) according to the approved form issued by any bank operating in the UAE”, and a step to “Submit original bank guarantee to Ministry” | Older page, still online |
| Afridi & Angell and Hadef & Partners on Ministerial Resolution No. 138 of 2024 | The AED 50,000 guarantee “has been removed”; existing branches holding one “should contact their banks for cancellation” | Secondary, law firm briefings |
Our reading: the current card governs, so a new Dubai branch does not need the guarantee. If an existing branch still holds one, ask your bank and MOET how to release it. Do not confuse it with MOHRE’s worker guarantee or insurance scheme, covered in our employment visa cost guide.
Ask the provider which current MOET card they rely on. The guarantee was never a fee (it was refundable), but tying up AED 50,000 of the parent’s credit line for nothing is a real cost.
The Dubai branch manager, name and premises
The manager
The Dubai branch acts through a manager appointed by the parent’s resolution and power of attorney, who signs applications, the lease, bank forms and contracts within those powers. If the manager is abroad at the start, much of the file can move under a power of attorney to a UAE representative.
Changing the manager is an amendment: a new attested resolution and power of attorney, a DET amendment, then MOET’s “Foreign Entity Branch Amendment”. MOET’s card makes the DET amendment a prerequisite and charges AED 1,500, with a late penalty of AED 200 “for each month, starting one month after the date of amendment”. Our trade licence amendment guide covers the DET side.
The name
A branch of a foreign company uses the parent’s name. Because the name is foreign, DET’s schedule has an AED 2,000 line for “a Trade name (foreign/ numeric)” rather than AED 200 (item 7); your voucher shows which applies.
The premises
Every licence needs premises suitable for the activity (Law 13/2011, Art. 17). For a branch, the Resolution No. 138 summaries add that the address must be physical. A serviced office in a DET-approved business centre is a physical address with an Ejari, and is often used by consulting or trading branches that hold no stock; confirm at initial approval that DET and MOET accept it for your activity. A warehouse or showroom is needed where the activity requires it.
Branch of a UAE or free zone company on the mainland
Not every Dubai branch belongs to an overseas parent. UAE companies open branches here too, and since 2025 Dubai free zone companies have their own route.
A branch of a UAE mainland company
An LLC licensed in Dubai or in another emirate can open a branch in Dubai as a “branch of a national company” (Law 13/2011, Art. 14(d)). There is no MOET registration and no embassy attestation. Expect DET to ask for the parent’s licence and a resolution of the partners or board to open the branch, appoint its manager and list its activities; a parent from another emirate provides its own licensing authority’s documents. It needs its own premises, Ejari and licence, and shares the parent’s legal personality and liability.
A branch of a Dubai free zone company: Resolution No. 11 of 2025
u.ae says direct sales from a free zone to the mainland are “generally not permitted” without mainland licences or approvals. Dubai’s answer is Executive Council Resolution No. 11 of 2025 (3 March 2025), which applies to Dubai free zone establishments working outside their zones in Dubai, except DIFC financial establishments (Art. 2). DET may grant three authorisations (Art. 4):
| Free zone branch route | What it is | Validity | DET fee (Art. 12) |
|---|---|---|---|
| Licence to establish a branch within the Emirate (Art. 5) | A mainland branch at its own Dubai location; “no separate legal personality nor … independent of its parent” | One year, renewable | Not set by Art. 12; ordinary DET licence fees apply (“prescribed fees … in accordance with applicable legislation”) |
| Licence to establish a branch operating out of the Free Zone (Art. 6) | Serves the Dubai mainland from the free zone premises | One year, renewable | AED 10,000 a year, issue or renewal |
| Permit to conduct specific activities (Art. 7) | Temporary permit for activities on DET’s list (Art. 9); now marketed as the Free Zone Mainland Operating Permit | Up to six months | AED 5,000, issue or renewal |
All three need the free zone authority’s prior approval, a valid free zone licence and any sector regulator’s approval (Arts. 5 to 7). The company must “maintain separate financial records” for its mainland activity (Art. 3), and Dubai’s laws and penalties apply to that activity (Art. 10). Existing operators had one year to comply, extendable once (Art. 13).
The Media Office launched the Free Zone Mainland Operating Permit on 8 October 2025: AED 5,000 for six months, renewable, applied for on Invest in Dubai by free zone companies holding a Dubai Unified Licence, for “non-regulated activities including technology, consultancy, design, professional services, and trading” at first. It says the permit opens access to government tenders and that related revenue is “subject to 9% corporate tax”. Confirm a specific tender accepts permit holders before bidding.
On staff, Article 8 lets an authorised establishment “engage its existing workforce registered on the Free Zone portal”. It does not create a MOHRE quota for new mainland hires. The wider comparison is in our free zone vs mainland guide.
A branch of a free zone company from outside Dubai, or of a foreign company already in a free zone
Resolution No. 11 of 2025 covers Dubai free zones only. A company in another emirate’s free zone should ask DET whether a branch under Law 13/2011, Art. 23(b), or a subsidiary applies. A foreign company with a free zone branch that now wants a mainland branch follows the MOET and DET route above.
DET’s archived trade licence cancellation card (last updated 12 November 2023) asked for a “Company de-registration decision from the Ministry of Economy … to cancel branches of foreign companies or branches of free zone companies”. Older free zone branches may therefore sit on a MOET register. MOET’s “Foreign Entity Branch Inquiry” service shows whether yours does.
Parent liability in a Dubai branch: what “no separate legal personality” means
This is the core of branch vs subsidiary. A foreign company branch is not a company in Dubai; it is the parent, working here. Resolution No. 11 of 2025 says the same of free zone branches in plain words: a branch has “no separate legal personality nor be deemed independent of its parent Company” (Arts. 5(b) and 6(b)).
- Contracts. A contract signed by the Dubai branch manager binds the parent and, in principle, its assets.
- Employees. Gratuity and labour claims against the Dubai branch are claims against the parent. Our gratuity guide shows how the liability builds up year by year.
- Fines. DET, MOET, MOHRE and tax penalties fall on the same legal person.
- Acting early. Under Article 336(2), people who act for a branch of a foreign company before licensing and registration are complete are jointly liable.
- Closure does not end liability. Cancelling the Dubai branch removes the licence, not the debts. Anything left unpaid remains the parent’s.
A subsidiary works the other way round: its creditors look to its own assets, and the parent risks its capital.
Corporate tax and VAT for a Dubai branch
How a Dubai branch is taxed depends on who the parent is. The Ministry of Finance’s corporate tax FAQ sets out the rules.
| Type of branch | Corporate tax position | Registration | Source |
|---|---|---|---|
| Foreign company branch | “A UAE branch of a foreign business will be subject to Corporate Tax and is required to register … if the branch constitutes a Permanent Establishment in the UAE” | Within six months of the permanent establishment existing (for those from 1 March 2024) | MOF FAQ, branches Q5 and Q6; FTA Decision No. 3 of 2024 |
| Branch of a UAE resident company | An extension of the parent; income included in the parent’s return | No separate registration or return | MOF FAQ, branches Q1 to Q3 |
| Mainland branch or permit of a Qualifying Free Zone Person | “the income attributable to such Permanent Establishment will be subject to Corporate Tax at 9%” | Under the free zone company’s own registration | MOF FAQ, free zones; Media Office, 8 October 2025 |
| Representative office | No permanent establishment where activity is only “preparatory or auxiliary” (storage, limited marketing, market research) | Depends on the facts; take advice | MOF FAQ, branches Q7; foreign persons Q4 |
What this means for a foreign company branch
- A foreign company branch with an office and staff is normally a permanent establishment: “a fixed or permanent place in the UAE through which the business is carried on” (MOF FAQ).
- Register within six months. FTA Decision No. 3 of 2024 gives a non-resident with a permanent establishment “six months of the existence of the Permanent Establishment”. Late registration carries an AED 10,000 penalty (Cabinet Decision No. 10 of 2024).
- Rates. Taxable income attributable to the Dubai branch is taxed at 0% up to AED 375,000 and 9% above. Small Business Relief is written for resident persons, so do not plan on it for a foreign company branch without advice.
- Accounts. The independent accounts required by Article 338 become the basis of the tax return.
- Home country. Relief for UAE tax in the parent’s country is a question for its tax adviser.
VAT
VAT registration follows the same thresholds as any business: mandatory above AED 375,000 of taxable supplies in 12 months, voluntary from AED 187,500. The step-by-step EmaraTax process for both taxes is in our corporate tax registration guide.
Visas, quota and staff for a foreign company branch
Once licensed, a Dubai branch is an employer like any mainland company, with a MOHRE file and a GDRFA establishment card; MOHRE approves work permits on status, premises and need.
- The manager is an employee. A branch has no individual shareholders, so the partner or investor residence routes that depend on owning shares in the licence do not fit a branch manager. The manager takes an employment visa and work permit on the Dubai branch’s file, in the MOHRE skill category of the role. Our employment visa cost breakdown shows the fees by category, and our employment visa service processes them.
- Quota grows with evidence. See our company visa quota guide, and our quota approval service files it.
- Labour rules are the same: MOHRE contracts, WPS and Emiratisation (see our Emiratisation guide).
- Seconded staff working in Dubai need a work permit and visa on the branch’s file.
- A free zone branch differs. Existing free zone staff can do the authorised mainland work (Resolution No. 11 of 2025, Art. 8).
Opening the files is covered in our MOHRE labour card guide and labour file opening service.
Branch of foreign company Dubai costs: the published fee lines
These are the government lines we could confirm on official pages or in Dubai legislation. They are not a quote, and DET’s voucher is final. The full mainland picture, with worked totals for different company profiles, is in our mainland business setup cost guide.
| Fee line | Amount | When | Source |
|---|---|---|---|
| MOET initial approval, foreign company branch | AED 3,500 | Once, before the licence | MOET branch registration and initial approval cards |
| MOET registration in the Foreign Companies Register | AED 7,500 | Within one month of the DET licence | MOET “Foreign Entity Branch Registration” |
| MOET renewal | AED 7,500 a year | Before expiry each year | MOET “Foreign Entity Branch Renewal” |
| MOET amendment | AED 1,500 | Manager, auditor, parent or licence changes | MOET “Foreign Entity Branch Amendment” |
| MOET freeze | AED 7,500 a year | If registration is frozen, one to three years | MOET “Foreign Entity Branch Registration Freeze” |
| MOET cancellation | No fee listed | On closure, after DET cancellation | MOET “Foreign Entity Branch Cancellation” |
| DET initial approval | AED 100 | Once | Executive Council Resolution No. 13 of 2011, Sched. 1, item 4 |
| DET trade name, foreign name | AED 2,000 (AED 200 for an ordinary name) | Once | Res. 13/2011, items 5 and 7 |
| DET licence issue or renewal | AED 600, plus activity and other voucher lines | Yearly | Res. 13/2011, item 1 |
| DET commercial register | AED 200 | On registration | Res. 13/2011, item 12 |
| MOFA attestation, commercial document | AED 2,000 per document | Once per document | MOFA FAQ |
| Free zone branch operating out of the zone | AED 10,000 a year | Yearly | Resolution No. 11 of 2025, Art. 12 |
| Free Zone Mainland Operating Permit | AED 5,000 per six months | Each six-month term | Res. 11/2025, Art. 12; Media Office, 8 October 2025 |
On these published lines alone, a foreign parent with four attested documents pays about AED 21,900 before activity fees, rent, embassy and translation charges: AED 11,000 to MOET (3,500 + 7,500), AED 2,900 to DET (100 + 2,000 + 600 + 200) and AED 8,000 to MOFA (4 × 2,000). From the second year, the fixed federal cost is AED 7,500 for MOET renewal, plus the DET renewal, the audit and the Chamber membership.
DET’s per-activity fees, knowledge and innovation fee lines and the market fee on rent are not all on a live DET page we could read. Our cost guide labels which lines are current and which are “previously published”; the voucher governs.
Keeping a Dubai branch compliant every year
A branch of a foreign company has two renewals, and the federal MOET registration carries the heavier penalties.
| Obligation | Deadline | If missed | Source |
|---|---|---|---|
| Renew MOET registration with audited financial statements (not for representative offices) | Before expiry; Resolution No. 138 summaries say within the month before | AED 1,000 “after one day from the expiration date”; an AED 100,000 administrative fine for not submitting annual financial statements, “doubling on an annual basis”; deregistration after two years without renewal (Res. 138 summaries) | MOET renewal card |
| Renew the DET licence | Within the last month before expiry | AED 250 plus AED 200 a month under Res. 13/2011, as explained in our expired trade licence guide | Dubai Law 13/2011, Art. 8(b) |
| Update MOET after a change (manager, auditor, parent ownership, licence details) | After the DET amendment | AED 200 a month, starting one month after the amendment date | MOET amendment card |
| Audit the branch accounts by a UAE-registered auditor | Yearly | Blocks MOET renewal | Companies Law, Art. 338 |
| Corporate tax return | Within nine months of the financial year end | FTA penalties | Our tax registration guide |
| Dubai Chambers membership renewal | Yearly | Membership is mandatory for DET licensees; see our Chamber guide | Dubai Law 1/2022, Art. 16 |
| Establishment cards and staff visas | On their own expiry dates | Immigration and MOHRE fines | Our establishment card guide |
MOET allows the renewal and an amendment to be filed together, which saves a cycle when the auditor or manager changes at year end. A branch that is dormant for a while can freeze its MOET registration for one to three consecutive years at AED 7,500 a year, with a letter explaining why; a branch whose registration has lapsed can re-register for AED 7,500 plus AED 1,000 for each month since expiry, provided its DET licence is valid. Our trade licence renewal service and establishment card renewal service keep both calendars in one place.
Closing a branch of a foreign company in Dubai
A Dubai branch cannot simply stop renewing. Until it is cancelled at DET and deleted from MOET’s register, fees and penalties keep running against the parent.
- Board resolution to close, attested and translated for a foreign parent.
- Staff and immigration. Settle final dues, cancel permits and visas, close the MOHRE file and establishment card. Our employment visa cancellation guide covers each step.
- Final accounts: DET’s archived card asked for a “Book from the auditor” and the “Company final budget”.
- Tax. File the final corporate tax return and apply to deregister. The Corporate Tax Law requires the deregistration application within three months of the business ceasing, and Cabinet Decision No. 75 of 2023 sets penalties for late applications. Cancel VAT registration if the branch had one.
- DET licence cancellation. DET’s archived card lists AED 500 plus AED 10 knowledge and AED 10 innovation fees, and an AED 500 announcement fee, with the board decision and newspaper announcements.
- MOET cancellation. MOET’s “Foreign Entity Branch Cancellation” service has no fee listed, takes one working day and needs “a certificate confirming the cancellation of the establishment’s commercial registration with the competent economic authority”.
- Everything else: Chamber, Ejari, utilities and bank accounts.
Which comes first, DET or MOET?
The two published sources point in opposite directions. MOET’s current card (updated 25 September 2026) says “Cancellation of the trade license by the competent authority is required before canceling the registration of a branch of a foreign establishment with the ministry.” DET’s archived card (last updated 12 November 2023) listed a “Company de-registration decision from the Ministry of Economy” among the requirements for cancelling a foreign or free zone company’s branch licence. MOET’s card is newer, so we ask DET at the start which document it needs, and file MOET straight after the licence is cancelled.
If the branch is still registered at MOET when its renewal date passes, the AED 1,000 late fee and the financial statements penalty can still apply. If closure will run past the renewal date, ask MOET whether to renew or freeze in the meantime.
Alternatives to closing
- Freeze the MOET registration for one to three years if the group expects to return.
- Convert to a subsidiary, then close the Dubai branch.
- Transfer the business to a local partner or distributor and close.
What goes wrong with a Dubai branch, and how to avoid it
- Missing the one-month MOET registration window, which carries an AED 100,000 penalty on MOET’s card.
- Attesting the wrong documents, then redoing them abroad.
- A translation made abroad. It will not satisfy the Ministry of Justice rule. Translate in the UAE after attestation.
- Assuming “only the branch” is bound by a contract.
- Forgetting the audit, which blocks MOET renewal.
- Late tax registration. Six months from the permanent establishment, not from the first invoice or the first profit.
- Letting the manager’s power of attorney expire.
- Closing only half the files, leaving fees running.
What circulates online about a branch of foreign company Dubai that is not true
| Claim | The position |
|---|---|
| “A foreign company branch needs a UAE national agent.” | Not since 2021. MOET FAQ 20: an agent is “not required”. |
| “You must deposit an AED 50,000 bank guarantee.” | Removed by Ministerial Resolution No. 138 of 2024 (law firm briefings); MOET’s current card lists no guarantee. One older MOET page still mentions it. |
| “A branch limits the parent’s risk to Dubai.” | No. It has no separate legal personality; the parent is liable for everything. |
| “A branch does not pay UAE corporate tax because the parent is abroad.” | A branch that is a permanent establishment registers and pays at 9% above AED 375,000 (MOF FAQ). |
| “A representative office can invoice small amounts.” | No. Its object is limited to market study, “without engaging in any commercial activity” (Art. 339). |
| “An apostille is enough for the parent’s documents.” | The UAE is not a party to the Apostille Convention; UAE Embassy and MOFA attestation are still needed. |
| “Free zone companies can never work on the Dubai mainland.” | Under Resolution No. 11 of 2025, a Dubai free zone company can get a DET branch licence or a six-month permit. |
| “A branch can use a virtual office.” | Dubai requires premises (Law 13/2011, Art. 17), and the Resolution No. 138 briefings say virtual offices are not permitted for branches. |
Worked cases: how a branch of foreign company Dubai file plays out
These cases are built from the situations we see most often. Names and identifying details are left out, and the figures are the published ones.
1. An engineering consultancy from Europe: branch vs subsidiary
Situation. A European engineering firm has won a Dubai project under a contract with the parent, and wants two engineers on site.
What applies. The client wants the parent’s name, which a branch of a foreign company gives; engineering needs a sector approval before the licence; the parent is already liable under the contract.
Outcome. A Dubai branch: four attested documents (AED 8,000 at MOFA), MOET AED 3,500 and AED 7,500, and employment visas for the engineers.
Lesson. Where the contract already binds the parent, the Dubai branch’s unlimited liability costs nothing extra.
2. An Asian trading group: subsidiary instead
Situation. A trading group wants a Dubai warehouse, stock, ten staff and local credit lines.
What applies. Stock, staff and supplier credit create liabilities the parent does not want to guarantee. Trading activities generally allow 100% foreign ownership of an LLC.
Outcome. A one-person LLC owned by the parent: no MOET registration or AED 7,500 renewal, and the liability stays in Dubai.
Lesson. The branch vs subsidiary decision is mainly about liability; cost is secondary.
3. A DMCC company with mainland clients
Situation. A software consultancy licensed in a Dubai free zone keeps being asked by mainland companies for on-site work.
What applies. Resolution No. 11 of 2025. Its activity is non-regulated, so the Free Zone Mainland Operating Permit fits: AED 5,000 for six months, with the free zone’s approval. Its existing staff can do the work (Art. 8). Mainland revenue is taxed at 9% and needs separate records (Art. 3).
Outcome. A permit first; if mainland work becomes regular, a branch operating out of the zone at AED 10,000 a year.
Lesson. Start with the permit and move to a branch licence when the volume justifies it.
4. A branch that forgot MOET
Situation. A foreign company branch received its DET licence and started invoicing. Seven weeks later its bank asked for the MOET registration certificate.
What applies. MOET’s card requires registration within one month of the licence and lists an AED 100,000 administrative penalty. Article 336(2) also exposes the people acting for the branch.
Outcome. The branch filed immediately with the auditor’s appointment letter and asked MOET how the late filing would be treated.
Lesson. Appoint the auditor before the licence so MOET registration can be filed the same week.
5. Closing a branch after three years
Situation. A parent is winding down its Dubai branch with four staff.
What applies. Staff settlements and cancellations, final audited accounts, corporate tax deregistration within three months of ceasing, DET cancellation (AED 500 plus announcement AED 500 on the archived card) and MOET cancellation (no fee listed).
Outcome. Visas first, then the licence, then MOET, having asked MOET in advance about the renewal date falling mid-closure.
Lesson. Start closure at least three months before the MOET renewal date.
How to verify every branch of foreign company Dubai figure
| Figure or rule | Where to check it |
|---|---|
| MOET initial approval AED 3,500; registration AED 7,500; one-month deadline; AED 100,000 penalty | MOET, “Foreign Entity Branch Registration” (Branches of Foreign Company services) |
| Renewal AED 7,500; AED 1,000 late; financial statements penalty | MOET, “Foreign Entity Branch Renewal” |
| Amendment AED 1,500; freeze AED 7,500 a year; re-registration; cancellation | MOET branch services pages |
| Documents to attest; no national agent | MOET FAQ, questions 6 and 20 |
| Bank guarantee removed; physical address; auditor rotation | Ministerial Resolution No. 138 of 2024, via the law firm briefings cited |
| Licence, registration, domicile, audit, representative offices | Federal Decree-Law No. 32 of 2021, Arts. 3, 335 to 339 |
| Branch as a legal form; premises; free zone branches | Dubai Law No. 13 of 2011, Arts. 14, 17, 23 |
| DET fee lines | Executive Council Resolution No. 13 of 2011, Schedule 1; your DET voucher |
| Free zone branch licences and permit fees | Executive Council Resolution No. 11 of 2025; Media Office, 8 October 2025 |
| Corporate tax treatment and registration deadline | MOF corporate tax FAQ (branches, free zones, foreign persons); FTA Decision No. 3 of 2024 |
| MOFA commercial document fee | MOFA FAQ, via our attestation guides |
If an official page has changed since we checked it, the official page wins.
What we will and will not do
We will set out branch vs subsidiary for your activity in writing; give the parent the document list; run the MOET, DET, Chamber, MOHRE and GDRFA steps; keep renewals on time; handle each free zone branch licence or permit; and close a Dubai branch in the right order. Government fees are passed on at cost with receipts, and our fee is quoted in writing before we start.
We will not act as a nominee, manager or local agent for your branch; give tax or legal opinions on how the parent should structure its group (we will tell you when you need a tax adviser or lawyer); promise approval times for regulators or embassies abroad; or quote a bank guarantee or agent fee that the law no longer requires.
Related guides
Each guide below goes deeper on a step that touches a foreign company branch.
- Mainland company formation in Dubai: the full process
- Types of companies in Dubai: every mainland legal form
- Mainland business setup cost in Dubai
- 100% foreign ownership in Dubai
- Local service agent in Dubai
- Free zone vs mainland Dubai
- Attestation process in the UAE
- Corporate tax registration in the UAE
- UBO register in the UAE
- How to renew a trade licence in Dubai
- UAE government fees list 2026
Branch of foreign company Dubai: frequently asked questions
Can a foreign company open a branch in Dubai?
Yes. A company incorporated abroad can open a branch on the Dubai mainland with a DET licence, after MOET’s initial approval, and must then register in MOET’s Foreign Companies Register within one month of the licence (Federal Decree-Law No. 32 of 2021, Arts. 336 and 337). The branch carries on the parent’s activity under the parent’s name, with the parent fully liable.
How much does it cost to register a branch of a foreign company in Dubai?
MOET charges AED 3,500 for initial approval and AED 7,500 for registration, then AED 7,500 a year to renew. DET adds its initial approval (AED 100), a foreign trade name (AED 2,000), the licence (AED 600) and activity lines. MOFA attestation is AED 2,000 per commercial document. Rent, translation, audit and visas are extra.
Is a bank guarantee still required for a foreign branch?
No. Ministerial Resolution No. 138 of 2024 removed the AED 50,000 bank guarantee, according to UAE law firm briefings, and MOET’s current registration card (updated 25 September 2026) lists no guarantee. An older MOET page still mentions it. Existing branches holding a guarantee should ask their bank and MOET how to release it.
Does a branch of a foreign company need a local sponsor or agent?
No. The national agent requirement for foreign branches was repealed by Federal Decree-Law No. 26 of 2020. MOET’s FAQ says a UAE national agent “is not required to be appointed by foreign companies wishing to conduct their activities within the UAE”. The branch is managed by a manager appointed by the parent’s board.
Branch vs subsidiary in Dubai: what is the difference?
A subsidiary, usually an LLC, is a separate company whose liability is limited to its own assets; the parent risks only its capital. A branch has no legal personality of its own, so the parent is liable for all of its debts. A branch also has an annual MOET registration; a subsidiary does not. Branch vs subsidiary is mainly a liability decision.
Which parent documents must be attested?
Usually the certificate of incorporation or registry extract, the articles of association, the board resolution to open the branch and appoint the manager, and the manager’s power of attorney. They are attested in the parent’s country, by the UAE Embassy and by MOFA, then translated into Arabic by a Ministry of Justice translator. MOFA charges AED 2,000 per commercial document.
How long does it take to open a branch in Dubai?
The Dubai side is quick: MOET lists three working days for initial approval and one working day for registration, and DET issues licences in minutes once approvals and Ejari are in place. The real timeline is set by attestation abroad, any sector regulator’s approval and finding premises. Plan in weeks to a few months, not days.
Can a free zone company open a branch on the Dubai mainland?
Yes, under Executive Council Resolution No. 11 of 2025. DET can license a branch within Dubai, a branch operating out of the free zone (AED 10,000 a year), or issue a six-month permit for specific activities (AED 5,000), marketed as the Free Zone Mainland Operating Permit. The free zone authority must approve first, and mainland records must be kept separately.
Is a Dubai branch of a foreign company subject to corporate tax?
Yes, if it is a permanent establishment, which a branch with an office and staff doing the parent’s business normally is. It registers within six months of the permanent establishment existing (FTA Decision No. 3 of 2024) and pays 9% on taxable income above AED 375,000. Late registration carries an AED 10,000 penalty.
Does a branch of a UAE company register separately for corporate tax?
No. The Ministry of Finance’s FAQ says UAE branches of a UAE resident company are an extension of the parent and “are not required to separately register or file”. Their income is included in the parent’s own corporate tax return. A foreign company’s UAE branch is different and registers in its own right.
Can the branch manager get a residence visa?
Yes, as an employee of the Dubai branch. Once the foreign company branch has its MOHRE establishment file and immigration establishment card, the manager receives a work permit and employment residence visa like any staff member. A branch has no individual shareholders, so partner or investor routes tied to owning shares in the licence do not apply to it.
What can a representative office do in Dubai?
Only promotion and research. Article 339 of the Companies Law limits a representative office to “the study of markets and production capabilities without engaging in any commercial activity”. It cannot invoice or sign sales contracts. It still registers with MOET, but is excluded from the audited accounts requirement that applies to branches.
What happens if we miss the MOET registration deadline?
MOET’s registration card lists an administrative penalty of AED 100,000 if registration is not completed within one month of the DET licence. Separately, Article 336(2) of the Companies Law makes the people who carry on the branch’s activity before completing the procedures jointly liable. File the registration, with the auditor’s letter, as soon as the licence is issued.
How do we close a branch of a foreign company in Dubai?
Cancel staff visas and permits, close the MOHRE and immigration files, prepare final audited accounts, deregister for tax, cancel the DET licence (AED 500 plus an AED 500 announcement on DET’s archived card), then cancel the MOET registration, which has no fee listed. The parent remains liable for anything the branch leaves unpaid.
Can MIRDXB PRO register our branch while the parent’s directors are abroad?
Yes, for most steps. The parent signs the resolution and power of attorney at home and attests them; we handle MOET, DET, premises, licence, registration, Chamber and establishment cards in Dubai under a power of attorney where the step allows. Government fees are passed on at cost and our fee is quoted in writing before we start.
Can you compare a branch and a subsidiary for our company?
Yes. Send us the parent’s country, the activity, the expected staff and how clients will contract with you. We reply in writing with both routes: liability, documents, annual filings, tax registration and the government fees for each, plus our own fee. If a subsidiary suits you better, we say so.
Opening branches, keeping MOET and DET registrations in step, and running the visas that follow is what our PRO services in Dubai team handles every day.
Checked against official sources on 25 September 2026: MOET’s branch service cards and FAQ, the Commercial Companies Law text published by MOET, Dubai Law No. 13 of 2011 and Executive Council Resolutions No. 13 of 2011 and No. 11 of 2025 on the Dubai Legislation Portal, the Ministry of Finance corporate tax FAQ, the FTA’s registration decision and the Government of Dubai Media Office. Ministerial Resolution No. 138 of 2024 is summarised from law firm briefings because its text is not on an official page we could read.
- Ministry of Economy and Tourism: Branches of Foreign Company services (registration, amendment, renewal, re-registration, cancellation, freeze, inquiry)
- MOET: Foreign Entity Branch Registration (updated 25 September 2026)
- MOET: Foreign Entity Branch Renewal (updated 16 September 2026)
- MOET: Foreign Entity Branch Amendment
- MOET: Foreign Entity Branch Cancellation
- MOET: Foreign Entity Branch Registration Freeze
- MOET: Re-register Entity Foreign Branch
- MOET: Foreign Company Branch Initial Approval (older card)
- MOET: Register Branch of Foreign Establishment (older card listing the bank guarantee)
- MOET: FAQs (questions 6 and 20)
- MOET: Establishing business in the UAE (updated 24 September 2026)
- Federal Decree-Law No. 32 of 2021 on Commercial Companies, English text on MOET (Arts. 3, 102, 335 to 339)
- UAE Legislation: Federal Decree-Law No. 32 of 2021 on Commercial Companies
- Dubai Legislation Portal: Law No. 13 of 2011 (Arts. 8, 14, 17, 23)
- Dubai Legislation Portal: Executive Council Resolution No. 13 of 2011, Schedule 1
- Dubai Legislation Portal: Executive Council Resolution No. 11 of 2025 Regulating the Conduct of Free Zone Establishments’ Activities
- Government of Dubai Media Office, 8 October 2025: Free Zone Mainland Operating Permit
- Government of Dubai Media Office, 12 November 2025: Dubai Unified Licence
- Ministry of Finance: Corporate tax FAQ (branches, free zones, foreign persons)
- Federal Tax Authority: Decision No. 3 of 2024 on corporate tax registration timeframes
- Ministry of Finance: AED 10,000 penalty for late corporate tax registration
- u.ae: Steps to start a business on the mainland (updated 16 July 2026)
- DED service card: Request for Initial Approval (archived 20 April 2024)
- DED service card: Request for Cancellation of Trade Licence (archived 6 December 2023)
- Secondary: Afridi & Angell, Ministerial Decision on Registration of Branches and Representative Offices of Foreign Companies
- Secondary: Hadef & Partners, A New Regime for Branches of Foreign Companies and Representative Offices
Please note. This guide sets out the rules for branches of foreign, UAE and free zone companies in Dubai as published by the Ministry of Economy and Tourism, in federal and Dubai legislation, by the Ministry of Finance and the Federal Tax Authority and by the Government of Dubai Media Office, verified 25 September 2026. Ministerial Resolution No. 138 of 2024 is described from law firm briefings, some DET lines come from archived service cards, and your MOET and DET vouchers are final. The cases are built from common situations and are illustrative, not the records of named clients. This guide is general information, not legal or tax advice; for group structuring or tax treatment, consult a lawyer or tax adviser licensed in the UAE.
