Complete Guide about Branch Licence in UAE
A branch licence in UAE lets a foreign company work in the Emirates without setting up a new legal entity. The branch runs as part of the parent company, not a separate one.
Ownership law updates now let most sectors have 100 percent foreign control. This makes a UAE branch one of the quickest and safest ways for global firms to enter the Middle East.
By 2024, the UAE passed 1 million registered companies. All thanks to the Commercial Companies Law changes and the Ministry of Economy rules. For international companies having a UAE branch office setup, perks include fast market entry, easy operations, and full ownership.
This 2026 guide covers branch license rules, costs, tax info, branch banking, and setup steps in the simplest words possible.
Guide to Choose Your UAE Branch Office Setup
The right structure choice cuts wasted time, costs, and rule risks to the lowest level.
Pick the Mainland Branch License if you:
- Sell straight to customers in the UAE
- Join government bids or public-private deals
- Give any service inside UAE Need a real spot for service work or a branch office.
Pick Free Zone Branch Licence UAE if you:
- Mainly help clients outside the UAE
- Want tax breaks? Do trade, tech, consulting, finance, or other service work.
- Like simple steps and low-cost branch setup
Pick LLC over a branch if:
- You want to protect the parent company from UAE risks
- Plan to sell or close the UAE business soon
- Want LLC to act as its own full company with a separate legal life
What the Branch Licence in UAE Allows
- All work done by a UAE branch follows the parent company’s business license rules.
- This means: Same company name, Same business tasks, Same legal duties.
Foreign Company Branch in UAE Under UAE Commercial Law
Foreign companies can set up branches for approved work.
A UAE branch can:
- Sign deals in the UAE with Bill customers
- Hire workers, Sponsor residence visas
- Rent office space Bid on private and public contracts when allowed
Branch office vs LLC in UAE
This difference matters a lot.
Branch Office
Makes money. Runs as a parent company, part Parent takes all risk
Representative Office
Cannot make money. Only does marketing and contacts. The parent still takes all the risk.
UAE Subsidiary LLC
Works as a separate legal company Can make money Parent risk limited to share capital.
Many global companies start with a branch license. As the business grows, they switch to an LLC.
Essential Laws for Foreign Company Branch in UAE
Foreign branches in the UAE follow specific rules from recent government changes. These rules help global businesses start work safely without fines.
Commercial Companies Law
Decree-Law No. 32 of 2021 sets basic rules for branches. It still works today.
Branches must follow these duties:
- Do only approved business tasks.
- Keep clear money records in the UAE.
- Pick a local manager at the parent company’s discretion.
- Show audited bank papers to the government when asked.
This law builds trust. UAE reached 1 million companies by 2024 thanks to these simple rules.
Foreign Ownership Reforms
Decree-Law No. 26 of 2020 changed everything. It ended the old rules, needing UAE partners for most work.
Now, branches get 100 percent foreign control in open sectors. No local shares needed. This opened the UAE markets to global firms. Foreign investment has grown 30 percent since 2020.
Mainland vs Free Zone Branch UAE: Choose Wisely
Pick based on your customers and plans. Each option fits different business needs.
Mainland Branch License
Department of Economic Development (DED or DET) gives these out. Dubai picks DET, other areas use DED.
Best pick when you:
- Sell goods to the UAE stores and people
- Bid for government or state firm deals
- Need shops, offices, or service spots across the UAE
- Plan long stay and local growth
- Mainland opens the whole UAE market. But get ready for more papers and highercosts.
Free Zone Branch Licence UAE
Each free zone office approves its own, like DMCC for trade or DIFC for finance.
Top choice when you:
- Mainly serve clients overseas and export
- Want the lowest taxes and the fastest setup
- Work in tech, finance, or trade hubs
- Need 100 percent ownership with no partners
- Free zones cut costs by 65 percent vs mainland. But branches stay inside zone limits.
Quick Comparison Table
| Feature | Mainland Branch | Free Zone Branch |
| Market Access | Full UAE | Zone only (dual permit extra) |
| Setup Speed | 4-8 weeks | 1-4 weeks |
| Tax Rate | 9% corporate | 0% qualifying |
| Best For | Local sales | Export/tax savings |
Dual License Rules for Mainland Access
Some free zones let branches do limited mainland work with dual licenses.
Examples:
- Dubai: DET gives permits to select zones
- Abu Dhabi: TAMM offers dual licenses
- DMCC: Allows some mainland access
Approval needs:
- Activity type
- Zone rules
- Extra fees
- No automatic.
Step-by-Step Process of Dubai Branch License
Dubai DET runs mainland branch licenses. Follows the 2026 Department of Economy and Tourism rules. Global firms use this path to enter the UAE market. Takes 4-8 weeks with the proper papers.
Step 1: Parent Company Papers (Week 1)
The documents related to the home country establish that the company exists and can operate in Dubai.
UAE branch licence requirements:
- Certificate of Incorporation (company birth paper)
- Memorandum and Articles of Association (company rules)
- Good standing certificate (shows the firm is active)
- Board Resolution (board vote approves Dubai branch + picks manager)
- Manager passport + visa (visit or residence okay)
Step 2: Name booking (Day 3-5)
Names can be booked through the DET portal or through an agent. Names must be the same as the parent company plus “Dubai Branch”.
Names that can be used: “ABC Corp Dubai Branch” or “XYZ Ltd UAE Branch.”
Unique names will require additional approval (which will take an extra 7 days)
Step 3: Local Service Agent for Branch Office Contract (Day 6)
Due to the 2020 reforms, agents have been removed from the majority of the work. However, some activities still require an agent in the UAE.
Step 4: Ejari Office Lease (Days 7-10)
Rent an actual office in Dubai. A flexi-desk is also available for branches (AED 25K/year).
Ejari is the government’s record of the tenancy. You cannot get a license without an Ejari.
Step 5: Ministry of Economy Pre-Check (Days 11-14)
You must submit through the portal to the MOE. They will verify whether the work of the parent company aligns with the list of permitted activities for the UAE.
- 7-day waiting time
- The parent just misplaced the document (the bank branch can’t trade)
- Restricted sector, no local partner
- Missing 2 years of audited accounts
Step 6: Final DET Application (Days 15-21)
Upload to DET: attested papers + Ejari + MOE okay + AED 15K-50K fees.
DET checks activity, office, and manager. 92% pass with complete docs.
Step 7: Pay and Get License (Days 22-28)
Payment order comes, Pay license + chamber fees, E-license ready. Print it.
Year 1 total: AED 80K-120K (license AED 25K + attest AED 15K + office AED 45K + visas AED 18K)
Step 8: Bank Compliance for Visas (Days 29-56)
- Establishment Card (AED 3K)
- 4 visas (AED 4.5K each)
- Corporate bank (6-12 weeks – start now!)
- VAT register if sales exceed AED 375K
Steps to Set Up a Branch in Abu Dhabi
ADDED manages branches using the TAMM platform.
Key differences:
- Some activities require minimum capital
- Office lease integrates with the Tawtheeq system
- Processing time is typically longer than in Dubai
Best for:
- Federal government projects
- Abu Dhabi state agencies
- Energy and infrastructure sectors
Best Free Zones for Branch Offices 2026
Pick the correct free zone for your branch. Each UAE zone fits different business types. Match your work to zone strengths for fast setup and low UAE branch licence cost. All offer 100 percent foreign ownership and zero percent tax on qualifying income.
Finance & Professional Services Zones
DIFC (Dubai International Financial Centre)
- Best for: Banks, law firms, accounting, and fintech.
- Why choose: English ordinary law courts. Own regulator (DFSA). Global finance hub.
- Branch perks: Fast licensing (2 weeks). 6 visas per flexi-desk. AED 35K+ setup.
- Drawback: Higher fees for premium status.
ADGM (Abu Dhabi Global Market)
- Best for: Investment funds, insurance, wealth management.
- Why choose: English law. Federal tax links. Abu Dhabi government contracts.
- Branch perks: Dual licensing to the mainland. 4 visas minimum. AED 40K setup.
- Drawback: Longer bank approvals (8 weeks).
Trading & Logistics Zones
DMCC (Dubai Multi Commodities Centre)
- Best for: Gold, diamonds, tea, crypto trading, solar exports.
- Why choose: World’s top commodity hub. 90K+ firms. Dual license to the Dubai mainland.
- Branch perks: Green License ready. 6 visas/flexi-desk. AED 22K setup.
- Pro tip: Perfect for CleanTech exporters too.
JAFZA (Jebel Ali Free Zone)
- Best for: Shipping, warehouses, manufacturing branches.
- Why choose: Next to the world’s biggest port. 10K+ logistics firms.
- Branch perks: 100 percent export focus. Lowest warehouse rent. AED 18K setup.
- Visa quota: 4 per flexi-desk, unlimited with warehouse.
Branch Licence in UAE Cost Breakdown 2026
Plan your budget with the exact 2026 fees. UAE branch licence cost vary by location and activity. Mainland branches cost more but give full market access. Free zones save 65% with tax breaks.
Dubai Mainland Branch Costs (Year 1 Total: AED 80K-120K)
| Item | Cost (AED) | Notes |
| License + Approvals | 15,000-50,000 | DET main fee. Higher for trading vs professional |
| Ministry of Economy | 3,000 | Mandatory branch office registration in UAE |
| Bank Guarantee | 50,000 | Refundable after 1 year |
| Attestation + Translation | 10,000-15,000 | Home country, UAE Embassy, MOFA, Arabic |
| Chamber of Commerce | 2,000-3,000 | Annual membership |
| Ejari Office Lease | 25,000-45,000 | Flexi-desk minimum |
| Establishment Card | 3,000 | Immigration file |
| 4 Visas | 18,000 | AED 4,500 each (medical + Emirates ID) |
Free Zone Branch Costs (Year 1 Total: AED 25K-60K)
| Zone | License Cost | Flexi-Desk | Visas (4) | Total |
| DMCC | 22,000 | 25,000 | 18,000 | 65,000 |
| DMCC | 18,000 | 20,000 | 18,000 | 56,000 |
| DMCC | 10,000 | 15,000 | 12,000 | 37,000 |
| DIFC | 35,000+ | 50,000 | 18,000 | 103,000+ |
How does Corporate Tax for UAE Branches Apply?
UAE branches face clear tax rules under Federal Decree-Law No. 47 of 2022. All branches count as taxable persons. They follow the same rates as local companies.
Standard Tax Rates for Branches
| Taxable Income (AED) | Rate |
| Up to 375,000 | 0% |
| Above 375,000 | 9% |
Free Zone Branch Special Rules
0% tax possible on qualifying income if the branch meets Qualifying Free Zone Person tests:
- Real office + UAE staff (substance)
- Only approved zone activities (manufacturing, logistics, HQ services)
- No permanent mainland trading
Fail tests = 9% tax on ALL income (backdated 5 years possible).
Branch Licence in UAE vs. LLC: Risk and Control Comparison
Branch License
- No separate legal status
- Full liability on the parent company
- Quicker to establish
LLC
- Separate UAE entity
- Liability limited to investment
- Better for long-term growth
Many businesses start with a branch and then switch to an LLC.
Is it the Right Time to Get the Dubai Branch License and Start a Business in Dubai?
Yes, 2026 is the perfect time for a Dubai branch license and business startup.
Three key reasons NOW beats waiting:
Post-2025 Economic Boom Continues
UAE hit 1.2M companies by Jan 2026. Dubai GDP grows 7% yearly. Expo 2030 prep pumps AED 50B into construction/tech. Government contracts open NOW.
Corporate Tax Rules Finalized (No Surprises)
9% tax locked in. Free zone 0% qualifying income rules are clear. FTA audits are predictable. No more “wait and see” – compliance straightforward.
Fastest Licensing Ever (2026 Reality)
- Mainland: 4 weeks with attested papers
- DMCC/JAFZA: 7-10 days
- RAKEZ: 3 days + free flexi-desk Year 1
Our team of PRO Services in Dubai will handle the process for you. They are licensed business setup consultants in Dubai with over 12+ years of experience in providing PRO Services Dubai.
Frequently Asked Questions
Q1: Can the Dubai branch use the parent company’s audited accounts for bank approval?
Yes. Emirates NBD/Mashreq accepts parent 2-year audits + UBO charts. No UAE accounts needed first year. Saves AED 15K audit cost. 85% bank success vs new LLCs.
Q2: What’s the Dubai Unified License (DUL) secret for branches?
5-day license for simple trading branches. DET auto-approves if parent matches DUL activity list + attested docs ready. Limited to AED 5M mainland revenue.
Q3: Do branches need an Emirati service agent for 2026 mainland trading?
No for 98% activities. Only Strategic Impact sectors (defense/banking). Agent fee AED 5K if needed – pure admin, no ownership. The 2020 reforms killed the sponsor’s needs.
Q4: Can free zone branches bill Dubai mainland clients directly?
Yes, with a DET dual permit. DMCC branches get mainland invoice rights for an AED 10K fee. Limit 5% total revenue from mainland or lose 0% tax status.
Q5: What’s the ” branch license “substance test for 0% free zone tax?
Must prove: Real Ejari office + UAE manager on payroll + 2 UAE staff Year 1. FTA audits 30% of branches. Fail = 9% back taxes + AED 50K penalty.
Conclusion
UAE branch licenses offer global companies fast access to the Middle East markets from 2026 onward. Mainland UAE branch office setup offers comprehensive UAE trading accessibility, while the free zones provide 65% cost savings along with 0% tax options. Both are governed by the straightforward Commercial Companies Law, offering 100% foreign ownership of most activities.
Correct jurisdiction, ideal first-time documents, and Day 1 bank arrangements all but guarantee success. Anticipate AED 80K – 120K for Year 1, with an 8 – 12-week setup. 2026 is ideal – Expo 2030 bid submissions will be opening, and licensing will be at its most rapid. Act now to establish the first-mover advantage.
Contact PRO Services in Dubai for more help!
