Foreign companies can promote their market or business in the United Arab Emirates (UAE) by setting up a representative office. For businesses looking to test the market, the Dubai International Financial Center (DIFC) provides a good low-cost option. The office is defined as a cost-effective parent company, enabling people in business to get the advantage of the no share capital requirements.
Here are the easy steps to opening a representative office in Dubai:
1. Recognize Local Service Agent
You will need to appoint a Local Service Agent of UAE nationality.
2. Primary Approval from DED
Once the trade name and business activity are finalized, the firm can seek approval from the Department of Economic Development (DED).
3. Receive Approval from the Ministry of Economy
Next step is to receive approval from the UAE Ministry of Economy (MOE). While applying, make sure all the documents, including the Memorandum, certification of incorporation, and Article of Association, will have to be translated into Arabic, attested and notarized.
4. License Issuance by DED
Once the MOE approves the application, you will need to apply to the DED for the license for establishing the representative office.
Advantages of Setting Up a Representative Office in the UAE
- Lots of tax benefit with 0% corporate tax rates and limited tax liabilities;
- Low cost of setting up the representative office in the UAE;
- There is no requirement for minimum share capital to set up a representative office in the UAE;
- Establishing a representative office in the UAE is simple, quick and easy;
- Foreign companies can benefit significantly from international expansion and worldwide connections through the representative office in the UAE;
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