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Foreign Branch Office in Sharjah
Establishing a foreign branch office in Sharjah, one of the seven emirates of the United Arab Emirates (UAE), can be a strategic move for expanding your global business presence. Opening a foreign branch office in Sharjah, one of the United Arab Emirates’ (UAE) emirates, offers several compelling advantages for businesses seeking to expand their global reach and tap into the Middle East market. Let’s explore some key reasons why you should consider setup a branch office in UAE.
Why Open a Foreign Branch Office in Sharjah?
Sharjah is one of the UAE’s fastest-growing economies, with a diverse range of industries, including manufacturing, trade, logistics, and tourism. By establishing a branch office in Sharjah, you gain access to a vibrant marketplace with significant growth potential.
The city’s proximity to Dubai also offers easy access to Dubai’s international airport and seaports. The UAE, including Sharjah, offers a business-friendly environment with minimal bureaucracy and a robust legal framework. The UAE consistently ranks high on global ease-of-doing-business indexes.
Companies operating in Sharjah often benefit from zero corporate tax, no personal income tax, and no import or export duties, depending on the nature of their business.
Sharjah’s excellent infrastructure, including its international airport and well-maintained road networks, facilitates efficient transportation and connectivity. This makes it easier to import, export, and distribute goods regionally and globally.
The UAE enjoys political stability, security, and a transparent legal system, providing a secure and reliable business environment. Also, Sharjah has a well-educated and skilled workforce, with many professionals proficient in English and other languages. This makes it easier to find and hire talent for your branch office.
Sharjah has several free zones, such as Sharjah Airport International Free Zone (SAIF Zone) and Hamriyah Free Zone, which offer incentives like 100% foreign ownership, full repatriation of profits, and tax exemptions to businesses.
The UAE has established strong trade relations with countries around the world. As a branch office in Sharjah, you can benefit from the UAE’s extensive network of trade agreements and partnerships.
The UAE and the broader Gulf region offer a diverse range of market opportunities across various sectors, including technology, finance, healthcare, and tourism. Sharjah’s cultural heritage and diverse population provide a unique market for businesses catering to cultural and lifestyle sectors.
Process to open a branch office in UAE
To establish a branch of a foreign company in Sharjah, a series of specific actions and document submissions are required, following a well-defined process as outlined below:
- Begin by applying for the necessary license using the official application form provided by the Sharjah Economic Development Department (SEDD).
- The board of directors of the foreign company must convene and produce minutes or approval explicitly stating their intention to establish the branch. This, along with legal translations and a statement from the business representative, should be prepared.
- Provide all the relevant documents verified by the U.A.E. Embassy, the foreign country’s authorities, and the U.A.E. Ministry of Foreign Affairs. Ensure that translations are included where required.
- A Power of Attorney must be issued in favor of the foreign company’s representative who will oversee the branch establishment process.
- Compile all the necessary documents and submit them for approval by the Section Head responsible for branch office registrations.
- Once all the required paperwork has been completed, approach the head of the Trade Name Section to obtain approval for the branch office registration on the license application form.
- It is essential to check with the Trade Name Section to verify that all documentation is in order and compliant with regulations.
- The applicant must initiate contact with the Ministry of Economy for their approval to proceed with the establishment of the branch.
The key documents required for registering a branch office include:
- License Application Form
- Verified Commercial License and Registration Certificate for the Parent Company
- Translated and Authenticated Memorandum of Association: Including any amendments, if applicable, for the parent company.
- Certified Copy of the Parent Company’s Statute: For private and public shareholder companies, along with the required legal translation.
- Legal Translated Minutes of the Board of Directors Meeting: Or a resolution authorizing the establishment of the branch.
- Certified Copy of the Agency Contract: This contract outlines the agreement between the local agent and the foreign company.
Following this well-structured process and ensuring the accurate preparation and submission of the required documents is crucial for the successful establishment of a foreign company branch in Sharjah. Adhering to local regulations and consulting with experts in the field can streamline the process and ensure compliance with all necessary legal and administrative requirements.
With Insight 360 team of experts by your side, you can gain a competitive advantage in the Sharjah business landscape. We simplify the often complex process, offering comprehensive assistance from license application to document authentication and board approval facilitation. For more details, request a free consultation today!
