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Frequently Asked
Questions

Can a foreign company open a branch in the UAE?

Yes, it can after maintaining a certified letter from the parent company and getting an approval from the UAE’s Ministry of Economy.

What is the maximum number of licenses a foreigner can own?

It is unlimited in Dubai.

What is a free zone?

According to the website of Dubai Multi Commodities Centre, a free zone or free trade zone is a designated geographical area wherein certain taxes or restrictions on business, employment or trade do not apply in the same manner that they apply to the country in which the zone is located.

What are the benefits of setting up a business in a free zone?

You do not need to partner with a UAE national. Apart from that, there is no much paperwork and no, much time is required to start a business in a free zone. In addition, you are exempted from customs duties.

What are the types of businesses I can do in a free zone?

Any business in the fields such as finance, education, retail, hospitality and media can be conducted in a free zone area.  Check with respective free zone authority for businesses permitted on their premises.

What are the benefits of setting up a business on the mainland?

Some of the benefits are:

  • Flexibility to do business in any part of the UAE
  • More business activities available for licensing
  • No business or personal taxes.
What is the cost of setting up a business?

Setting up a business involves raising capital investment, paying for licenses and visas of the employees. The cost of setting up a business depends on:

The nature of the activity and license required; whether it is commercial, industrial or service sector. The legal form of the company; whether it is an establishment, a company, or a branch of an existing company.

Do you need an office space to setup a business in Dubai?

If you are looking at setting up a business in Dubai or UAE you will need to rent a business office space.

Is a branch a separate legal entity?

While a branch has no separate legal standing, a subsidiary company is a separate legal entity and has an identity different from its holding company.

Is representative office a legal entity?

A representative office is an office established by a company or a legal entity to conduct marketing and other non-transactional operations, generally in a foreign country where a branch office or subsidiary is not warranted.

What is the difference between a rep office and a branch?

A branch/representative office has limited legal capacity. A representative office is not allowed to generate profit, while a branch office is allowed to perform certain activities of the parent company and may generate profits.

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