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Foreign companies looking for exposure within the UAE may consider establishing a representative office. Allowing foreign companies to promote their brand and introduce their products within the UAE, the representative office could be thought of as a ‘shop window’ structure.
However, it’s worth bearing in mind that this shop window cannot export, import or sell in the UAE. It is only permitted to promote the products and services of its foreign parent, while also carrying out administrative functions on its behalf.
Many foreign companies opt for the representative office structure, as it offers total control while retaining full ownership of the representative office within the UAE.
Unlike a limited liability company, a representative office is similar in structure to the foreign branch office , in that it is an extension of its foreign parent company. Both the representative office and foreign branch office are wholly-owned by their parent company, so there is no need for a local shareholder to act as partner.
Again, similar to the foreign branch office, the representative office is required to engage a UAE national to act as a local service agent, which handles all government dealings, including visa applications and renewals.
One last noteworthy similarity between the foreign branch office and the representative office is the restriction on both that limits the number of foreign employees within each type of office.
But, despite the many similarities, there is of course one very significant difference between the two company structures, regarding the scope of activities each is allowed to undertake.
A representative office may only conduct marketing and administration activities within the UAE, gathering information on the local market, establishing relationships and soliciting orders to be performed by the parent company.
Establishing a representative office in Dubai means choosing the right partner to act as local service agent. In this role, Fusion Middle East excels, acting as trusted partner, offering a transparent service, as well as essential support and guidance.
While you retain full control of your business in Dubai, we make sure the boxes are ticked and all paperwork is filed correctly. Our excellent PRO services ensure your business abides by the rules and regulations of the UAE, leaving you free to focus on the day-to-day essentials.
Find out more about all we provide as your partner, by contacting us today on 00 971 4381 7333 to arrange a free, no-obligation consultation.