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Subsidiary Company Setup in Dubai

Subsidiary Company Setup in Dubai & UAE

Loaded with all the glitz and glam, Dubai is not only a top destination for tourism but also one of the world’s most business-friendly places providing special business opportunities. While the citizens actively employ the city’s business-friendly nature, investors and entrepreneurs worldwide come to Dubai for enterprise and consider it a perfect investment place. For a business setup in Dubai, selecting the proper business form is extremely important. If you want to expand your foreign company in Dubai or UAE, you can choose a subsidiary company setup in UAE.

Subsidiary company formation in UAE is a smart move if your business objective is to venture into the global horizon. Commencing a new business into a seemingly new geographical region can be a risky proposition. As an investor, you have to consider various aspects that can impede the business setup procedure, including the recent laws and rules, capability threat, and business capital. A subsidiary company can deal with the risk facets while offering you an extensive business reach in UAE with 100% possession rights. This strategy gives you insight into the new area, and you can run an independently organized company from abroad or within the UAE. The Government of Dubai has enacted legislation, the Dubai Company Act, which permits foreign investors to set up a subsidiary company – provided that the companies abide by all the rules and regulations.

Subsidiary Vs Branch Company

A subsidiary company is an individual legal entity to the parent firm and can be supervised overseas or within the UAE. On the other hand, a branch company is an expansion of the overseas parent firm. You can attain 100% ownership of the subsidiary company in the UAE with Limited Liability. However, the administration and workforce of the subsidiary company must be in the UAE, and the parent firm can be overseas or in the UAE.

How To Set Up A Subsidiary Company?

Below is the process for subsidiary company formation:

  • Reserve the company name.
  • Procure approval for your company activities and operation from DED.
  • Notarize the documents and outline articles and the Memorandum of Article & Association (MOAA) for the subsidiary company in Dubai.
  • Submit documents and expected information of your company shareholders and managers to DED.
  • Apply for a business trade license and Dubai’s Chamber of Commerce Certificate.

Documents Required to Acquire a Business Trade License 

Have a look below at all of the documents needed to obtain a business trade license in Dubai.

  • Attested Memorandums of Article & Association of the Parent Company (Corporate Shareholder).

  • Attested Board Of Resolution of the parent company.

  • Attested Commercial license of the parent company.

  • Copies of passports of the authorized signatories and managers.

If you are a foreigner looking to set up a subsidiary in UAE, you must assess collaborating with a business consultancy firm, such as BYTES. Partnering with us will ensure a smooth subsidiary company formation procedure. As a consultancy enterprise, we will take care of every element, from registering the proper license to applying for visas for your workers.

Benefits of Subsidiary Company Setup in Dubai

Following are some crucial advantages that a UAE subsidiary company will enjoy:

  • Registering a subsidiary in Dubai gives extensive flexibility and freedom. A subsidiary offers a distinct entity to the level of freedom as compared to a branch company.

  • A subsidiary offers Corporate and Individual Shareholders to be in one License.

  • UAE Local Sponsor is not required for an LLC Commercial/Industrial Subsidiary Company.

  • Full (100%) foreign ownership is allowed for a subsidiary company on the mainland.

  • You can further opt for any free zone to register a subsidiary business in Dubai.

  • Another advantage that comes with setting up a subsidiary is the credibility it offers to the company, especially with banks, service providers, and consumers.

  • A subsidiary gives its holders the capacity to offset revenues and losses of one part of a business with another one.

  • There are no currency limitations, so organizations can invest and do business with the currency that best suits their requirements.

  • Those who want to set up a subsidiary company in UAE can ensure an incredible lifestyle in the UAE. It proposes high-quality infrastructure and an extensive range of shopping centers, hotels, and entertainment/ leisure choices.

How can we help? 

At BYTES, we have the best business setup consultants in Dubai who know how to make the procedure of business setup in the UAE a breeze for both seasoned and aspiring entrepreneurs. Our devoted business consultants will support you at every step of registering a subsidiary company setup in Dubai. Contact us now.

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