Branch of Foreign Office
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Branch of Foreign Office
Establishing a branch office in Sharjah is a significant step for businessmen operating in the UAE. When you open a branch for your office in Sharjah, it implies that you already have a licensed company either within the UAE or outside.
There are four common types of branch offices to consider when opening a branch company in Sharjah. The choice depends on your business activities, the location of your parent company, and other relevant factors:
Corporate Shareholder Branch Office
In this setup, the parent company can be based in the UAE or abroad. It allows for individual shareholders to hold stakes in the branch, along with the license. For example, a UK company can own 50%, with 25% each held by two individuals. Multiple corporate owners are also possible.
Branch Office
This is the most common type of foreign branch office in UAE. Similar to the corporate shareholder option, the parent company can be based in the UAE or abroad. However, branch companies differ in that the parent company remains the sole owner. There is no share capital requirement to open a branch office, and it uses the parent’s articles of incorporation.
Representative Office
Representative offices are generally the most cost-effective branch type. The parent company can be based in the UAE or overseas. Representative offices primarily focus on promoting and sourcing work for the parent company and are not allowed to generate profits in the UAE. They must outsource all work back to the parent company.
Subsidiary
Subsidiaries are considered separate legal entities from the parent company and must be managed from within the UAE. They assume full liability for their actions and business activities. The parent of a subsidiary can be based in the UAE or abroad, but the subsidiary’s management is within the UAE.
Understanding these options for Branch Office in Sharjah allows you to choose the one that best aligns with your business goals and activities, taking into account your parent company’s location and the level of control and liability you wish to maintain.
Benefits of Establishing a Foreign Branch Office in Sharjah
Here are the benefits of opening a branch office in Sharjah presented in bullet points to avoid plagiarism:
Expanded Reach: Opening a branch allows businesses to reach customers in different parts of the UAE, fulfilling orders and providing services more efficiently.
Enhanced Customer Relations: Establishing a foreign branch office in UAE fosters stronger relationships with customers and builds rapport, leading to increased customer satisfaction.
Increased Brand Visibility: Expansion through branch offices introduces the company’s name to new consumers, potentially tapping into new markets and increasing brand recognition.
Stronger National Presence: Having a foreign branch office in UAE strategically located throughout the country helps the company establish a robust national presence and become a prominent name within its industry.
Profit Growth: Branch offices contribute to the overall profits of the organization, further bolstering the financial success of the entire enterprise.
Credibility and Trust: Successfully setting up branches demonstrates the company’s stability and commitment to growth, enhancing its credibility in the market.
Strategic Decision: Branch expansion is typically a strategic move made by companies with a well-established customer base and strong client relationships.
Documentation Required for Opening a Branch Office in Sharjah
Shareholder and Manager Documents
- Copies of passports for all shareholders.
- Passport copies and CV (resume) of the manager, who must hold a university degree.
Business Documentation
- Proof of trade name reservation for the Sharjah branch.
- Proof of initial approval for the activities of the new branch.
- Memorandum of Association (MOA) of your existing main branch at the place of origin, duly notarized by the UAE notary public.
- Articles of Association of your existing main branch at the place of origin, also notarized by the UAE notary public.
- Board resolution from the board of directors of your existing main branch, expressing their intent to open a foreign branch office in UAE.
- Valid Certificate of Registration/trade license of your existing main branch.
- Valid Certificate from the Chamber of Commerce of your existing main branch.
- Notarized Power of Attorney appointing us as your official agent to act on your behalf.
Physical Address Confirmation
- Lease agreement documents as evidence of the physical address of your new branch office in Sharjah. The minimum space requirement is 550 sq. ft. (approximately 60 sq. m.). Your registration agent can assist you in finding a suitable physical address.
Company Profile
- Your main branch’s company profile.
At LINKS CORPORATE CONSULTANTS, our team of experts is well-equipped to address all your inquiries and streamline the process of establishing your branch of foreign office in Sharjah. For more details, get in touch with us today!