How to Open a Branch of a Foreign Company in Dubai (2026)
Open a branch of a foreign company in Dubai: MoET approval (AED 3,500) and registration (AED 7,500), the DET licence, free zone branches and tax.
Zola
UAE Business Advisory Team
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A branch of a foreign company in Dubai is the parent company itself doing business in Dubai, not a new company: it has no separate legal personality, and the parent carries its liabilities. On the Dubai mainland it needs a licence from the Department of Economy and Tourism (DET) plus an initial approval and a registration from the federal Ministry of Economy and Tourism (MoET); in a free zone, the zone's own authority licenses it under its own rules. (Source: Ministry of Economy and Tourism) Federal law does not require a UAE national agent. (Source: MoET national agent FAQ)
As of October 2026, the mainland route runs in this order: attest the parent's documents, get DET's initial approval through Invest in Dubai, get MoET's initial approval, lease premises and register the lease in Ejari, collect the DET licence, register the branch with MoET within one month, then register for corporate tax within six months. Each step is set out below. If your board is still choosing between a branch and a subsidiary, the next section settles that first.
Branch or Subsidiary: What Changes for the Parent
The real difference is who stands behind the Dubai operation. A branch is the foreign company itself, so the Dubai business's debts and contracts are the parent's; a subsidiary is a new UAE company with a legal personality of its own. The choice also changes the corporate tax position, the relief available and the deadlines that apply.
Branch and Subsidiary Side by Side
Point | Branch of the foreign company | UAE subsidiary |
|---|---|---|
Legal personality | None of its own: a legally dependent part of the parent (DMCC rule) | Its own, separate from its shareholders (DMCC rule) |
Who carries the liabilities | The parent company | The subsidiary; in DMCC a shareholder's liability is limited to any amount unpaid on its shares |
Corporate tax status | The parent is a non-resident taxed through a Permanent Establishment | A Resident Person |
Headline corporate tax rates | 0% on the first AED 375,000 of Taxable Income attributable to the branch, 9% above | 0% on the first AED 375,000, 9% above |
Small Business Relief | Not available (subject to any applicable double tax agreement) | Available only if it meets every condition, including the multinational enterprise group test |
Corporate tax registration | Within six months of the branch existing | Within three months of incorporation |
MoET foreign branch registration (mainland branch) | Required for a mainland branch, renewed every year | Does not apply |
(Sources: DMCCA Company Regulations; Federal Tax Authority, Non-Resident Persons guide)
How a Branch Is Taxed
For UAE corporate tax, a branch is a Permanent Establishment of the foreign company, and the Federal Tax Authority (FTA) treats a UAE branch as an extension of that non-resident company. The parent is taxed on the Taxable Income attributable to the branch at the same rates as a resident: 0% on the first AED 375,000 and 9% on the amount above it.
Small Business Relief is where the two routes split most clearly. Only a Resident Person can elect it, so a foreign company taxed through a Dubai branch cannot, although an applicable double tax agreement may affect this. A company incorporated in the UAE is a Resident Person, and a subsidiary can elect Small Business Relief for tax periods ending on or before 31 December 2029 if its revenue is AED 3 million or less and it is neither a Qualifying Free Zone Person nor a member of a multinational enterprise group. (Source: Ministry of Finance)
Those are separate conditions, and meeting the revenue test does not settle the others. A subsidiary owned by a foreign parent belongs to a wider group, so confirm with the Federal Tax Authority whether your group counts as a multinational enterprise group for this relief before you rely on it.
When Each One Fits
A branch suits a parent that is willing to stand behind the Dubai operation and wants to contract in its own name. There is no new legal entity to form or govern, but every Dubai liability sits with the parent, and a mainland branch also carries a yearly MoET renewal with audited financial statements.
A subsidiary suits a group that wants the UAE risk ring-fenced in a separate company. It is also the route that can be eligible for Small Business Relief, but revenue is only one of the conditions, so check the multinational enterprise group condition with the Federal Tax Authority before the relief shapes your decision. Groups planning several UAE entities often weigh a holding company structure at the same point.
Where a Representative Office Fits
MoET's initial approval service covers both a branch and a representative office, and a representative office does not need the auditor appointment letter at registration or the audited financial statements at renewal. What a representative office is allowed to do differs from a branch, so confirm its permitted activities with the licensing authority before you choose it. (Sources: MoET Foreign Entity Branch Registration; MoET Foreign Entity Branch Renewal)
Mainland Branch or Free Zone Branch
Where the branch sits decides who licenses it. A mainland branch is licensed by DET and also goes through MoET's federal approval and registration; a free zone branch is licensed by the authority that supervises the zone, under that zone's own regulations.
Who Licenses Each Type
Under Dubai Decree No. (13) of 2024, Invest in Dubai is the emirate's unified digital platform for issuing, renewing, amending and cancelling licences, and a licensing entity is either DET or an authority supervising a free zone or special development zone. For a mainland branch, the UAE Government portal lists MoET as the approving entity for a branch of a foreign company or a representative office. (Source: UAE Government portal)
How the Choice Affects Corporate Tax
A free zone branch can be taxed differently. If the non-resident is a Qualifying Free Zone Person, for example a branch operating in a free zone, the FTA applies 0% to its Qualifying Income and 9% to Taxable Income that is not Qualifying Income. (Source: Federal Tax Authority, Non-Resident Persons guide)
The wider trade-offs, including where you can trade and what premises you need, are covered in our free zone vs mainland comparison. A free zone branch that later wants mainland customers can also read how a dual licence works.
How to Open a Branch of a Foreign Company on the Dubai Mainland
A foreign company opens a mainland branch in eight steps, and the order matters: MoET's initial approval runs for four months, and its one-month registration window starts the day DET issues the licence. Prepare everything the parent must sign and attest before the first clock starts.
The Eight Steps in Order
Prepare and attest the parent's papers. You need an official certificate from the authority in the parent's home country showing its date of establishment, name, legal form, owners, activity and capital, plus a resolution of the parent's board (its administrative body) to open the branch; have them attested by the home country's foreign ministry, then the UAE embassy or consulate there, then the UAE Ministry of Foreign Affairs (MoFA), and use our full document checklist for the rest of a corporate applicant's file. (Source: MoFA attestation FAQs)
Check the commercial agent condition. MoET will not issue its initial approval if the parent has a commercial agent registered in the Ministry's commercial agencies register, so check this before you apply.
Get DET's initial approval through Invest in Dubai. Choose the activity, reserve the trade name and apply for the initial approval; foreign investors need the approval of the General Directorate of Residency and Foreigners' Affairs (GDRFA) first, and an initial approval does not let the branch trade, as our Dubai mainland company setup steps explain in detail.
Apply for MoET's initial approval for a foreign entity branch. Sign in with UAE PASS on the MoET website or smart app, upload the attested documents and pay AED 3,500; MoET lists an average of one working day, and the approval is valid for four months, during which the company may not do business. (Source: MoET initial approval)
Lease premises and register the lease in Ejari. Every UAE business needs a physical address, and the Dubai licence needs a lease attested by RERA (the Real Estate Regulatory Agency); our guide to choosing office space in the UAE compares the options.
Collect the DET licence. Submit the initial approval receipt, the attested lease and any approvals other government entities require, then pay the licence voucher within 30 days of receiving it, or the application is cancelled. (Source: UAE Government portal)
Register the branch with MoET within one month of the licence date. Submit the licence, the parent's duly certified commercial registration or official certificate, and a letter appointing an auditing firm registered with MoET to audit the annual financial statements, and pay the AED 7,500 registration fee; missing the window carries an AED 100,000 administrative fine, and if the parent already has a branch registered with MoET, the new one is linked to the same registration number. (Source: MoET Foreign Entity Branch Registration)
Register for corporate tax. Under FTA Decision No. 3 of 2024, in force since 1 March 2024, a non-resident company with a Permanent Establishment in the UAE must apply to register within six months of the Permanent Establishment coming into existence. (Source: Federal Tax Authority)
Fees to Confirm Before You Budget
MoET publishes its own fees: AED 3,500 for the initial approval and AED 7,500 for the registration, each paid at its own step. DET's licence and trade name fees depend on the activity, and lease, Ejari and attestation costs vary, so check each one with the authority that charges it (on Invest in Dubai, for DET) before you commit to a budget.
Once registered, MoET issues an official certificate that proves the branch's legal status to government and private entities. With the licence and that certificate in hand, the branch can move on to operations, starting with the steps to open a business bank account.
Local Agents and a Dubai Branch
Under federal law, a branch of a foreign company does not need a UAE national agent. Two documents still mention a service agent, though, so check your activity with DET before you file.
The Federal Position
MoET states that a foreign company does not need to appoint a UAE national agent to conduct its activities in the UAE. The UAE Government portal records that Federal Decree-Law No. 26 of 2020, later consolidated in Federal Decree-Law No. 32 of 2021 on Commercial Companies, eliminated the obligation for branches of foreign companies to appoint a UAE national service agent. Activities of strategic impact can still carry their own licensing requirements set by the Cabinet. (Sources: MoET; UAE Government portal)
Where an Agent Can Still Come Up
MoET's initial approval form asks for an agency contract with a service agent only if there is one. The UAE Government portal's general list of documents for a mainland licence still names an attested service agent contract for civil establishments and companies wholly owned by non-GCC nationals, and it does not say how that applies to a branch. Ask DET whether your activity needs one before you apply, rather than assuming either answer.
Opening a Branch in a Free Zone: The DMCC Example
In a free zone, the branch is established and licensed under the zone's own regulations rather than by DET. DMCC publishes its branch rules in the DMCCA Company Regulations, which makes it a clear worked example of what a free zone asks of a foreign parent.
How DMCC Establishes a Branch
The parent applies to the DMCC Registrar with its memorandum and articles of association (or equivalent constitutional documents), the full name, address and nationality of each of its directors, the proposed branch name and the details of the person who will serve as branch manager. No branch can be established without the Registrar's approval. Once approved, the Registrar issues a Certificate of Establishment and assigns the branch a DMCC Entity Number. (Source: DMCCA Company Regulations)
What a DMCC Branch Must Keep Doing
A DMCC branch must keep a place of business in DMCC, have at least one person authorised to accept service on its behalf at all times, and conduct only the activities its licence permits. Separately, the branch must obtain its licence within twenty-four weeks of establishment, or the Registrar may strike it off. Each year it sends the Registrar a copy of the annual return the parent files in its home country, and it files the parent's accounts and auditor's report within five Business Days of the meeting that approves them.
Other free zones set their own branch rules, documents and fees, so confirm them with the zone you choose. To shortlist zones before you apply, compare UAE free zones.
After the Branch Opens: Yearly Obligations
A mainland branch has two recurring federal duties on top of keeping its DET licence current: renewing its MoET registration every year and paying corporate tax on the income attributable to it. For a DMCC branch, the yearly parent filings its regulations require are set out in the DMCC section above.
Renewing the MoET Registration
A mainland branch's MoET registration certificate is valid for one year, and you renew it before it expires with the annual financial statements audited by an audit office the Ministry accredits. The renewal fee is AED 7,500. A late fee of AED 1,000 applies from one day after the expiry date, and failing to submit the annual financial statements carries an AED 100,000 administrative fine that doubles each year. A renewal and an amendment can be filed together. (Sources: MoET Foreign Entity Branch Renewal; MoET Renew Registration)
Corporate Tax on the Branch's Income
The foreign company pays corporate tax on the Taxable Income attributable to the branch at the rates shown in the comparison table, having registered within six months of the branch coming into existence. Everything else about the regime, from tax periods to returns, works as set out in our guide to how UAE corporate tax works.
Closing a Branch
Closing a branch means unwinding the licence and registrations that opened it. The steps differ between a free zone, where DMCC sets out exactly what a removal request must contain, and the mainland, where both DET and MoET are involved.
Removing a DMCC Branch
In DMCC, the request to remove a branch must include the parent's written confirmation that all of the branch's liabilities remain the parent's, a resolution of the parent's directors authorising the removal, evidence that every DMCC lease has been terminated and the branch's bank accounts closed, and, where it applies, Dubai Customs confirmation that no customs duties are outstanding. (Source: DMCCA Company Regulations)
Cancelling a Mainland Branch
On the mainland, both the DET licence and the MoET registration have to be cancelled, so confirm the current steps with DET and MoET before you start. For the wider process, see our guide on how to close a company in the UAE.
Common Mistakes When Opening a Dubai Branch
Check these five before you file anything. Several involve federal windows that run on fixed clocks, and on the mainland a missed MoET registration window carries an AED 100,000 fine.
Five Mistakes and How to Avoid Them
Applying before the home-country documents are attested. MoET requires duly attested documents, so finish the chain of home-country foreign ministry, UAE embassy or consulate, and MoFA before you file.
Missing the one-month MoET registration window. For a mainland branch, the window starts on the licence issue date and the fine is AED 100,000, so have the auditor appointment letter ready while DET is still issuing the licence.
Trading during the four-month initial approval. MoET's initial approval does not allow the company to do business, so hold commercial activity until the DET licence is issued.
Assuming the branch shields the parent. In DMCC a branch's liabilities are expressly the parent's, and the FTA treats a UAE branch as an extension of the foreign company, so compare a subsidiary first if the parent needs the Dubai risk ring-fenced.
Losing track of the tax and audit calendar. The branch must register for corporate tax within six months of coming into existence, and a mainland branch files audited annual financial statements with every MoET renewal, so put both dates in the calendar on day one.
On the mainland, a Dubai branch comes down to attesting the parent's papers, then meeting each federal window in order: the four-month initial approval, the one-month registration and the six-month corporate tax registration. To have the branch licence, the Ministry approval and registration, and the attestation of the parent's documents handled, create your Zola account.
