Abu Dhabi Foreign Branch Complete Guide
Foreign branches are an extension of the overseas parent company. As they do not take on their own legal identity, they are only permitted to carry out activities in Abu Dhabi which are the same as their parent company. Activities restrictions make Foreign Branches suitable for services and manufacturing companies. Foreign branches are suitable for working with the federal government, Abu Dhabi government departments and organisations such as ADNOC and Mubadala.
Abu Dhabi Foreign Branch - Overview
Can work with UAE federal and Abu Dhabi governments
Wholly-owned by the overseas parent company
Parent company assumes full liability
Trade name matches the parent company's name
Activities must match those of the parent company
Restricted activities
Local service agent is no longer required
Additionally registration needed with the Ministry of Economy (MOE)
AED50,000 bank guarantee must be deposited with the MOE
Registration process: approximately two months
Unlimited number of visas allowed
Avail corporate banking facilities
12 months validity, renewable annually
Abu Dhabi Foreign Branch: Eligibility & Suitability
Companies registered outside of the UAE (the proposed General Manager for the Abu Dhabi branch must have previously visited the UAE)
Ideal for services and manufacturing companies
Abu Dhabi Foreign Branch: Legal Structure & Ownership
Mainland or Free Zone
The Abu Dhabi Foreign Branch license is a mainland license, issused by the Abu Dhabi Department of Economic Development (ADDED), enabling the branch to work throughout the Emirate of Abu Dhabi. This is not a free zone license.
Legal Form
A Foreign Branch doesn't take on a separate legal identify from it's overseas parent company, it is considered part of the overseas parent company.
Ownership
Abu Dhabi Foreign Branches are wholly-owned by the overseas parent company.
Share Capital
N/A
Local Sponsor?
Local Service Agents are not required for new Foreign Branches.
Commercial Premises
A registered address, leased in the name of the foreign branch is required for the registration of the company and throughout its duration.
Foreign Branches need an Abu Dhabi Tawtheeq lease contract for a commercial premise. (A Tawtheeq contract means the lease is officially registered with the Department of Municipalities & Transport. Without a Tawtheeq lease, a lessee can't open a dispute or claim against the landlord if ever needed.)
Commercial space must be:
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suitable for the activities on the license
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large enough to accommodate the anticipated number of visas
Some business activities have specific requirements, e.g. training activities require a training centre of 100sqm as a minimum, and have special fit-out instructions which must be adhered to.
General Manager Visa
If the individual appointed as the General Manager isn't a UAE citizen or resident, they will need to request their Unified Identification number (UID) at Immigration upon arrival into the UAE. This will be needed to commence the Foreign Branch application process.
Abu Dhabi Foreign Branch Visas
Abu Dhabi residence visas can be applied for upon issuance of the Foreign Branch economic license (trade license). Once the trade license has been issued, it will be necessary to apply for an Establishment Card, before starting the visa application process. Once employee visas have been issued, they can then apply sponsor their family members, providing they meet the requirements.
Abu Dhabi Foreign Branch: Ministry of Economy Registration
Foreign Branches need to register with the Ministry of Economy (MOE). This is what you need to know:
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Foreign branches can start operating upon issuance of their trade license, but the registration process is not fully complete until the registration certificate is issued from the MOE.
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Registration with MOE must be completed within 30 days of the license being issued to avoid penalty fines which accrue at AED1,000 per month (up to AED10,000 per year).
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Foreign branches need to deposit a AED50,000 bank guarantee with the MOE for the lifetime of the Abu Dhabi branch.
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MOE registration needs to be renewed annually, for which an Arabic copy of the branch's audited annual results must be submitted.
Abu Dhabi Foreign Branch: License Details
Company Registration
Once the documents are ready for the Foreign Branch license application, it takes 3-4 weeks on average for license issuance. (It will be longer if premises require a fit-out, or special approvals are needed.) Thereafter, Ministry of Economy (MOE) registration should be completed within 30 days to avoid late registration penalties accruing (this is subject to bank account opening, arranging bank guarantee).
Trade License Validity
The Foreign Branch license and MOE certificate are issued for 12 months.
Trade License Renewal
The Foreign Branch license and MOE certificate both need to be renewed annually. Delays in renewing will incur increasing fines for each month the license is not renewed and AED10,000 for each month the MOE certificate is not renewed.
Trade License Cancellation
When the Foreign Branch license is no longer required, it needs to be liquidated and removed from the official registry. Failure to cancel the license will result in fines accruing, as well as liabilities relating to non-filing of tax returns.
Abu Dhabi Foreign Branch: Essential Information
Business Activities
A Foreign Branch is only permitted the provide the same activities that it's overseas parent company is registered for. Additionally, new Abu Dhabi Foreign branches can only apply for business activities which allow 100% foreign ownership.
Foreign branches can not carry out following business activities in Abu Dhabi:
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Trading (buying and selling goods, wholesale or retail)
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Restaurants and catering
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Haj and Omra services
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Labour supply (recruitment and manpower services)
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Commercial Agent
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Disabled shelters and rehabilitation centres
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Care and community centres
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Social services and activities
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Printing and publishing
Company Name
The Foreign Branch takes on the same name as it's overseas parent company. Usually the approved name will have the suffix 'Abu Dhabi' or 'Abu Dhabi Branch' added to reflect the legal status, but this isn't always the case.
Employing Staff
There are no restrictions on the number of visas a Foreign Branch can apply for. However, the Foreign Branch should have a genuine need for the employees and be able to provide a suitable working environment.
The branch must first have an E-Channel registration in Immigration and an Establishment Card, as well as have a registration with the Ministry of Human Resources and Emiratisation (MOHRE), prior to starting the visa application process for staff employment visas.
Foreign Branch employment visas are issued for two years
Foreign branches must pay their employees' salaries via the UAE's federal payroll system, the Wage Protection System (WPS).
Business Bank Account Opening
Foreign Branches can open corporate bank accounts and avail business banking facilities. Bear in mind, banks regularly update their account features and conditions to be competitive, reflect their current appetite for risk and to comply with industry regulations.
Exit Strategy
As a Foreign Branch doesn't have a separate legal status from it's overseas parent company, it doesn't have shares which can be sold. When the license is no longer needed, it will be necessary to formally close the branch and remove it from the official registry.
Whilst, it is technically possible to convert a foreign branch into a Limited Liability Company (LLC), which could then be sold to a new owner, this is a complicated and expensive process. Therefore, if the longer term strategy is to sell the Abu Dhabi operation as an individual operating unit, it might be better to consider an LLC from the the outset.
Foreign Branch Requirements
Overseas Parent Company Documents & Information Requirements
✔️ Company name
✔️ Registration number
✔️ Registered address
✔️ Phone number
✔️ Email address
✔️ Source of funds
✔️ Purpose of transaction
✔️ UAE Pass app registration
✔️ Certificate of Incorporation
✔️ Memorandum & Articles of Association*
✔️ Board Resolution to establish the Abu Dhabi Foreign Branch
✔️ Power of Attorney for the general manager of the Abu Dhabi foreign branch
✔️ Power of Attorney for Gateway Group to establish the Dubai Foreign Branch on your behalf
* Memorandum And Articles of Association need to clearly state: activities of the company, registered address, capital and shareholders. In the instance this information is not mentioned, alternative documents will be required.
The above documents must be notarized; legalised at the Ministry of Foreign Affairs; and, legalised at the UAE Embassy in the company's home territory.
Parent Company's Signatory's Documents & Information Requirements
✔️ Full name
✔️ Residential address
✔️ Power of Attorney
✔️ Passport copy
✔️ Emirates ID card copy (if any)
✔️ UAE Pass App registration
General Manager's Documents & Information Requirements
✔️ Full name
✔️ Residential address
✔️ Mobile number
✔️ Email address
✔️ Passport copy
✔️ Emirates ID card copy (if any)
✔️ UID Number (if non-UAE citizen or resident)
✔️ UAE Pass App registration
* The UID Number (Unified Identification Number) is a six digit number given to all UAE visitors upon arrival. If given by an officer at the immigration counter, it will be on a small white sticker on a page in your passport; alternatively, if you used the e-gates, you can search for your number here: https://gdrfad.gov.ae/en/unified-number-inquiry-service
Additional Documents Required for the Abu Dhabi Foreign Branch
✔️ Specimen signature of the General Manager
This document will be notarised by the Abu Dhabi Notary Public during the company registration process.
✔️ Auditor's Appointment Letter (in Arabic from the appointed Abu Dhabi auditor).
✔️ AED50,000 Bank Guarantee in favour of the Ministry of Economy.
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Foreign Branch Office License. Page updated 29 August 2024.