Setting up of Dubai Branch for a Freezone License Company

Freezone License Company Dubai Branch SetUp, UAE

Company License Type – Branch External Approval : Ministry of Economy

 

General Conditions :

• Branch of a free zone company must be register with the Ministry of Economy
• Free zone companies with local shareholding of 51% are not required to register in the Ministry of Economy
• The facility should have a local agent  however ,  free zone companies that have local shareholding does not
• Need a local service agent
• An automatically renewable bank guarantee for the amount of AED 50,000 is required
• The branch office must obtain the necessary external approvals for activities requiring such
• The name of branch office must be identical the name of the mother company
• Freezone companies cannot setup branches that practice the following activities

1. 1. Commerce and any ancillary activities representing in the general sale and purchase of products and
   2. Commodities ( Trading Activities )
   3. Restaurants, coffee shops and food catering services
   4. Hajj and Umrah services
   5. Labour supply
   6. Commercial agencies
   7. Social care activities such as

• • • Care centers for disabled persons
    • Rehabilitation centers for disabled persons
    • Centers and clubs for elderly care
    • Social service centers and any office or center concerned with social work services
    • Establishments
• In case the facility has failed to renew the registration of its branches or offices for a period of two successive years , such banks shall be administratively de-registered. Likewise the penalties and fines will be deducted from the bank guarantee

Requirements – DED

• Original parent company
  1. Memorandum / article of incorporation
  2. Certificate of incorporation
  3. Trade license, if applicable
  4. Share certificates
• Tenancy certificate and Ejari certificate
• Passport copy , Emirates id and family book of the local service agent , In case the local agent is a legal entity a copy of the trade license with the name of nationalities of the shareholders issued from the competent authority of the Emirates in which the company is established, shall be attached
• Local service agent agreement
• Board resolution to establish a branch office  assigning the manager – attested from the free zone authority
• If it is in English, then it must be legally translated in Arabic and attested by the Ministry of Justice
• Power of Attorney in favor of the Manager of the branch office from the parent company sign on its behalf  – attested by the free zone authority.If it is in English, then it must be legally translated in Arabic and attested by the Ministry of Justice
• Passport copy and most recent entry stamp ( 6 months old) of manager on the the freezone license. If holding a valid UAE residence visa , an NOC is required
• Passport copy of the beneficial owners of the parent company
• Original NOC  to open a branch issued from the free zone authority addressed the Department of Economic Development – Dubai
• Initial approval certificate from the Ministry of Economy

Requirements  – Ministry of Economy Initial Approval

• Trade name reservation
• Initial approval certificate
• Original parent company documents
• 1. Memorandum / article of incorporation
  2. Certificate if incorporation
  3. Trade license , if applicable
  4. Share certificates
• Board resolutions to establish a branch office assigning the  manager – attested by the free zone authority . If it is in English, then it must be legally translated in Arabic and attested by the Ministry of Justice
• Power of Attorney in favor of the Manager of the branch office from the parent company sign on its behalf  – attested by the free zone authority. If it is in English, then it must be legally translated in Arabic and attested by the Ministry of Justice
• Local service agent agreement
• Passport copy , Emirates id and family book of the local service agent , In case the local agent is a legal entity a copy of the trade license with the name of nationalities of the shareholders issued from the competent authority of the Emirates in which the company is established, shall be attached

Timeline : 5- 7 working days Validity : 4 months

Requirements -Ministry of Economy registration (Post License)

• Letter from the certified auditor assigning an auditor the branch
• Copy of the trade license
• Power of Attorney in favor of the Manager of the branch office from the parent company sign on its behalf  – attested by the free zone authority. If it is in English, then it must be legally translated in Arabic and attested by the Ministry of Justice
• A bank guarantee letter for AED 50,000
• Copy of the managers passport

Validity : 1 year *** A delay penality of AED 1,000 per month to maximum AED 10,000 shall be impose in case the application is submitted one month after the date of the trade license issuance

Process 

Step 1 : Initial approval certificate Step 2 : Trade name registration Step 3 : Apply for the corresponding external approval ( if applicable ) Step 4 : Signing of local service agent agreement at the Notary Public. Please note that all shareholders need to present at the time of signing Step 5 : Submit requirement to the Ministry of Economy and obtain MOE initial approval certificate Step 6 : Submit the initial approval , original approval deed form , trade name reservation , tenancy contract with Ejari  and all the documents mentioned above to deed and obtain payment voucher Step 7 : Collect payment voucher & make payment Step 8 : Obtain trade license Step 9 : Apply for branch registration in the Ministry of Economy