Foreign Branch & Representative Office

  • The Companies Law, in article (313) allows a foreign company to exercise its main activity in the UAE by opening a branch or a representative office.

     

    The difference between the two is that the foreign company which opens a branch in the UAE may exercise freely the activities for which it is licensed whereas a representative office may practice only promotional business for the products and services provided by the parent company.

     

    Unlike a foreign branch a representative office cannot conduct business operation or market directly its product. In order to engage a foreign branch to conduct its operation in UAE it should obtain a license from the Ministry of Economy & Planning prior to obtain the license from the concerned authority in the respective Emirate.