Branch Office in UAE — Foreign Company Branch Setup

How a branch differs from a subsidiary

A branch is the same legal entity as its parent, operating in the UAE under the parent’s name. It has no separate share capital and no separate legal personality. A subsidiary — typically an LLC — is a distinct legal entity that the parent owns.

	Branch	Subsidiary (LLC)
Legal identity	Same entity as parent	Separate legal entity
Liability	Parent fully liable	Generally limited to the subsidiary
Share capital	None	Required per activity/authority
Activities	Must align with the parent’s activities	Can differ from the parent
Name	Parent’s name	Own trade name

When a branch makes sense

You want UAE presence under an established international brand
You are delivering contracts in the UAE that were won by the parent
You want to avoid the complexity of a separate corporate entity and its governance

Conversely, if you want liability separation, local investors, or activities the parent does not perform, a subsidiary is the better vehicle.

What is required

Attested parent-company documents — certificate of incorporation, memorandum and articles, board resolution and power of attorney for the branch manager — plus the usual licensing, premises and visa steps. Attestation and legalisation of overseas documents is the step that most often causes delay, so we start it early.

Tax position

A UAE branch of a foreign company falls within the UAE Corporate Tax framework on its UAE activities, and treatment depends on the specific facts — including permanent-establishment considerations and any applicable double-tax agreement. This is one of the cases where structure and tax genuinely need to be planned together rather than sequentially. See Corporate Tax.

Frequently asked questions

Generally no. A branch operates as an extension of the parent and its licensed activities must align with what the parent does. If you need different activities, a subsidiary is the appropriate route.

A branch has no separate share capital because it is not a separate legal entity, though authorities may require a bank guarantee or other security depending on the case.

Yes. Because the branch is the same legal entity, obligations of the branch are obligations of the parent. This is the main reason businesses with material risk exposure choose a subsidiary instead.

Branch Office of a Foreign Company