BRANCH OFFICE OF FOREIGN COMPANY
UAE has become an attractive heaven for foreign companies to have a business setup and do an company formation in Dubai or in any part of the UAE. The government has made flexible laws and regulations to enhance, promote and provide the best infrastructure for foreign companies to create a branch in the UAE. UAE has become a global international business hub for the world connecting East and West business districts. This is the reason so many foreign companies have opened their headquarters here in the UAE. As a foreign company, you can legally open a branch office or representative office here in the UAE. Branch Offices (BOs) and Representative Offices (ROs) are at the lowest end of the three tier system of business entities permitted by UAE law. They don’t have their own legal identity and are therefore considered as an extension of the foreign corporation, which is still responsible for their actions. The foreign parent is under direct liability for the conduct of its ‘branch’, and in UAE law, director’s duties continue to apply even after incorporation. When foreign owned, a branch office has the same commercial and company law status as a UAE-owned company. Branches have no legal personality and cannot own or convey property. The limits of liability for branches are those of the foreign company itself.