Key takeaways
- A branch carries the parent's name and isn't a separate legal entity; DMCC says the parent bears full liability.
- On the mainland, the order is MOET initial approval, a DET license, then MOET registration within one month of the license.
- MOET lists AED 3,500 for initial approval and AED 7,500 for registration at the time of writing, and registration renews every year.
- Ministerial Decision No. 138 of 2024 doesn't list a local service agent or a bank guarantee among its requirements.
- The FTA lists a branch as an example of a permanent establishment, taxed on the income attributable to it.
Branch or subsidiary: what the difference means
A branch is the foreign company itself, working in the UAE: the Commercial Companies Law treats it as the company's domicile for its UAE operations. A subsidiary is a new company with its own legal personality.
| Point | Branch | Subsidiary |
|---|---|---|
| Legal status | An extension of the parent (DDA: a legally dependent part of it) | A separate legal entity |
| Liability | DMCC: the parent company bears full liability | DMCC: it has its own liabilities |
| Name | Must match the foreign company's name (Decision 138; JAFZA: the same name) | Its own registered trade name |
| Corporate tax | The FTA lists a branch as an example of a permanent establishment | A UAE-incorporated company, including in a free zone, is a resident person |
Which suits you is a legal and tax decision for your advisers; we prepare the paperwork for either route.
How a mainland branch is licensed in Dubai
Under Federal Decree-Law No. 32 of 2021, a foreign company needs a mainland license issued with the ministry's approval, and an entry in MOET's foreign companies register, before it operates. Anyone operating before then is jointly and severally liable. Federal Decree-Law No. 20 of 2025 left these articles unchanged, and Ministerial Decision No. 138 of 2024 sets the procedure.
| Step | Who | What you submit | Fee at the time of writing |
|---|---|---|---|
| 1. Trade name and initial approval | DET | The parent's name and the branch's activity | Set by DET |
| 2. MOET initial approval | MOET | DET's approval, trade name certificate, attested parent certificate, parent's decision approving the branch | AED 3,500 |
| 3. Branch license | DET | Premises with an Ejari-registered lease, plus any activity approvals | Set by DET |
| 4. MOET registration, within one month of the license | MOET | License, certified parent registration, auditor's appointment letter | AED 7,500 |
| 5. Yearly renewal | MOET | Audited accounts, updated parent certificate | AED 7,500 |
The decision makes the initial approval valid for eight months; MOET's service page still says four, so plan to get the license within four months to be safe. You can't trade in this period, and MOET lists an AED 100,000 fine for late registration. We prepare and submit each application and follow up; MOET and DET decide. See mainland company formation.
Local service agent and bank guarantee: what applies now
Ministerial Decision No. 138 of 2024 repealed Ministerial Decision No. 377 of 2010 on the manual of license procedures. It doesn't list a local service agent or a bank guarantee, and MOET's current registration page (updated 24 October 2026) asks for neither; its initial approval page wants an agency contract only where a service agent exists. u.ae's mainland guide, though, says businesses owned completely by non-GCC residents require a local service agent.
A second MOET page for the same service still lists an AED 50,000 bank guarantee in favour of the Minister of Economy. Lead with the decision, and confirm both points with MOET and DET before you apply.
Documents the parent company provides
- Certificate of incorporation or commercial registration, showing name, legal form, shareholders, capital and activity.
- Memorandum and articles of association. See articles of association attestation.
- Board resolution approving the branch and appointing its manager.
- Power of attorney delegating authority to the UAE manager.
- Manager's passport copy, plus a no-objection letter from their current sponsor, per MOET's FAQ.
- Auditor's appointment letter from a MOET-registered audit firm (not needed for representative offices).
MOET's FAQ says incorporation documents are attested by the UAE embassy and the Ministry of Foreign Affairs (MOFA); some missions, such as London, issue a digital attestation that includes MOFA. MOET also needs foreign-language documents translated into Arabic by a UAE-certified translator. See commercial document attestation, our attestation process guide and legal translation.
Free zone branches: JAFZA and DMCC
The law's mainland licensing rule excludes foreign companies licensed in free zones; each zone sets its own rules.
| Zone | Parent documents | Attestation |
|---|---|---|
| JAFZA | Certificate of incorporation or good standing, MOA and AOA, board resolution approving the branch, confirming the parent's full financial commitment and granting a POA | Notarised and attested by the UAE embassy or consulate; where there's none, a GCC or Arab embassy, then UAE MOFA |
| DMCC | Certificate of registration or trade license, incumbency certificate under one year old, MOA and AOA or by-laws | Notarised at home; at least one document, ideally the incumbency certificate, attested by the UAE embassy or consulate |
JAFZA says a branch is wholly owned by the parent, with the same name and activities. DMCC also asks you to declare owners of 25% or more, up to the ultimate beneficial owners. See jafza and dmcc business setup.
Corporate tax and yearly accounts
Under Federal Decree-Law No. 47 of 2022, a non-resident with a permanent establishment (PE) is taxed on the income attributable to it; a foreign company effectively managed and controlled in the UAE is a resident instead. If the PE starts on or after 1 March 2024, the FTA gives six months from the date it starts to register.
Article 338 of the Commercial Companies Law requires a branch to keep its own accounts, appoint a UAE-registered auditor, and file its balance sheet, final accounts and auditor's report with the licensing authority and MOET yearly. We can file your corporate tax registration; tax positions are for a registered tax agent.
Sources
- UAE Legislation: Federal Decree-Law No. 32 of 2021 on Commercial Companies
- MOET: Ministerial Decision No. 138 of 2024 on registering branches and representative offices of foreign companies
- MOET: Foreign entity branch registration
- MOET: Initial approval for foreign company branch
- DMCC: Open a branch
- JAFZA: Legal required documents for all registrations
- FTA: Permanent establishment
Official sources checked on 10 November 2026. This guide explains published rules in plain English and is not legal or tax advice. Rules change; we check the current position for your case before you act.