How to Expand Your Foreign Business to Dubai: Branch Licence Guide

A practical 2026 roadmap for international companies opening a UAE branch office.

Set up a legal footprint in Dubai while keeping your existing brand, ownership, and parent company identity.

Why a Dubai Branch Is a Strategic Expansion Route

Dubai continues to strengthen its position as a global business hub in 2026. For established foreign companies, opening a branch is often the fastest way to enter the UAE market while keeping the parent company structure intact.

A branch licence allows your business to operate in the UAE under the parent company name, with full foreign ownership and operational continuity.

Recent legal reforms, including UAE Ministry of Economy Ministerial Resolution No. 138 of 2024, have simplified the branch setup process and reduced historical barriers to entry.

Understanding the UAE Branch Office Structure

A branch is an extension of the parent company, not a separate legal entity

A UAE branch office is legally tied to the foreign parent company. The parent company carries full legal and financial responsibility for branch operations.

Because the legal identity is shared, the branch normally uses the same business name and performs the same core activities as the parent entity, subject to permitted activity approvals from DET or the relevant Free Zone authority.

Regulatory Overhaul: What Changed Under Resolution 138 of 2024

Two major barriers were removed for mainland foreign branches

No mandatory local service agent requirement

Foreign companies setting up a mainland branch are no longer required to appoint a National Service Agent or Local Service Agent. This reduces complexity and recurring liaison fees, while keeping full control with the foreign parent company.

No AED 50,000 refundable bank guarantee

The previous Ministry of Economy bank guarantee requirement was removed. This lowers capital lock-up and improves cash flow, especially for growth-stage firms and mid-sized international operators.

Choosing Jurisdiction: Mainland vs Free Zone Branch

Select structure based on target market and operating model

Mainland branch (DET licensing)

A mainland branch can trade directly in the UAE local market, access broader commercial opportunities, and lease office space across Dubai.

Free Zone branch (authority-specific licensing)

A free zone branch may offer regulatory efficiencies depending on the chosen zone. However, local UAE mainland trade is generally restricted unless supported through compliant local distribution structures.

Core Documentation and Compliance Requirements

Cross-border legalization quality determines timeline speed

Branch setup requires complete parent company documentation from the home jurisdiction. Corporate documents usually need legal translation into Arabic (where applicable), notarization in the origin country, and attestation by the UAE Embassy abroad and UAE MOFA domestically.

Commonly required documents include:

  • Certificate of Incorporation of the parent company
  • Memorandum and Articles of Association
  • Certificate of Good Standing from the home jurisdiction
  • Board Resolution approving the Dubai branch setup
  • Power of Attorney authorizing branch representation in the UAE
  • Recent audited financial statements (typically two years)

Step-by-Step Branch Setup Process in 2026

Typical timeline: 4 to 8 weeks, depending on attestation readiness

Step 1: Ministry of Economy initial approval

Submit the initial application through the MoE electronic platform for trade name and activity approval. Initial approval is generally valid for eight months.

Step 2: Office lease and Ejari registration

Secure physical office premises and register the tenancy through Ejari. Virtual office arrangements are generally not accepted for branch licensing.

Step 3: Local commercial licence issuance

Proceed with the relevant local authority, such as DET for mainland licensing, using the approved branch documentation set.

Step 4: Final MoE branch registration

After trade licence issuance, the branch must return to MoE to finalize registration and obtain the official branch Certificate of Registration within the required post-licence window.

Missing statutory filing windows can result in administrative penalties and process disruption.

Seamless Global Expansion with Sarmat

Cross-border expansion depends on exact sequencing, complete attestation, and correct portal submissions under current UAE rules.

At Sarmat, we support end-to-end branch setup execution, including document legalization coordination, licensing workflow management, and compliance-focused structuring from first filing to final registration.

Branch Setup Support Book Consultation
SARMAT PROFESSIONAL & MANAGEMENT DEVELOPMENT TRAINING L.L.C | SARMAT GOVERNMENT SERVICES L.L.C

Helping individuals and businesses navigate UAE government procedures with precision and ease.Based in Dubai. Local experts. Government-compliant.

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