Depending on the type of business set-up, a branch or representative office and virtual offices may be established. Differentiating a branch or representative office set-up from virtual offices would involve physical activity and cost of expenses involved. Setting up a virtual office would not necessarily require the actual presence of the employee to render the company’s service. Additionally, a virtual office worth is at lesser cost than that of the actual offices. In comparison, the services that both offices offer are somewhat equivalent.
Branch/ Representative Office Set-Up in Dubai
Most foreign and international companies may have their branch or representative offices in the UAE. The difference between the two is that, a branch office in the UAE is allowed to conduct freely the same activities to that of its parent company while a representative office exercises only marketing activities and promotional business for the products and services offered by its parent company. Furthermore, a branch office are permitted to join contracts and conduct local business while representative offices are not. In establishing either of these offices, UAE requires detailed requirements and documents including certificates and permits of registrations that is attested in the UAE.
A topmost prerequisite in setting up a branch or representative office is by having a local service agent who will be engaging and approaching the DED for name reservation and obtaining an initial requirement from the Ministry of Economy.
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