Dubai has become one of the most attractive global destinations for Indian businesses looking to expand internationally. With its strategic location, tax-friendly environment, strong India–UAE trade relations, and world-class infrastructure, Dubai offers an ideal platform for Indian companies to establish a branch office and access Middle East, Africa, and European markets.
This guide explains how Indian companies can open a branch office in Dubai, including eligibility, legal requirements, licensing process, costs, and key advantages.
What Is a Branch Office in Dubai?
A branch office in Dubai is an extension of a foreign company operating under the same name and carrying out the same business activities as its parent company in India. Unlike a subsidiary, a branch office does not have a separate legal identity. The parent company remains fully responsible for the branch’s operations, liabilities, and compliance.
Branch offices are commonly used by Indian companies for trading, consultancy, contracting, marketing, and professional services.
Can Indian Companies Open a Branch Office in Dubai?
Yes. Indian companies are fully allowed to open branch offices in Dubai, subject to approval from UAE authorities. The Indian parent company must be legally registered and actively operating in India. In most cases, the company should have a minimum operational history and sound financial standing.
Indian businesses from sectors such as IT services, construction, trading, engineering, logistics, healthcare, and professional consulting frequently establish branch offices in Dubai.
Key Benefits of Opening a Branch Office in Dubai
Opening a branch office in Dubai offers several advantages for Indian businesses:
- Full ownership by the Indian parent company
- No corporate tax on most business activities
- Access to international clients and regional markets
- Strong banking system and capital mobility
- Business-friendly regulations and political stability
- No requirement for local shareholders (for branch offices)
Dubai also offers a strong Indian business ecosystem, making it easier to network, hire talent, and grow operations.
Mainland vs Free Zone Branch Office
Indian companies can open a branch office either in Dubai Mainland or in a Free Zone.
Mainland Branch Office
- Allows business operations anywhere in the UAE
- Requires a UAE national service agent (no ownership rights)
- Ideal for trading, contracting, and service-based activities
Free Zone Branch Office
- Limited to operating within the free zone or internationally
- No local service agent required
- Suitable for consulting, IT, and specialized services
The choice depends on the nature of business and target market.
Step-by-Step Process to Open a Branch Office in Dubai
1. Determine Business Activity
The branch office must conduct the same activities as the Indian parent company. Authorities will verify alignment between both entities.
2. Initial Approval from UAE Authorities
Approval is required from:
- Ministry of Economy
- Department of Economic Development (DED) or relevant Free Zone Authority
This confirms eligibility to establish the branch.
3. Appoint a Local Service Agent (Mainland Only)
A UAE national or UAE-owned company must be appointed as a local service agent. The agent has no ownership or management rights and acts only as a liaison with government departments.
4. Prepare and Attest Documents
Key documents include:
- Certificate of incorporation of the Indian company
- Memorandum and Articles of Association
- Board resolution approving the Dubai branch
- Power of attorney for branch manager
- Audited financial statements
All documents must be notarized in India, attested by the UAE Embassy, and legalized by the UAE Ministry of Foreign Affairs.
5. Office Space and Tenancy Contract
A physical office address is mandatory. The tenancy contract must be registered and approved before final license issuance.
6. Obtain Trade License
Once approvals and documentation are complete, the trade license is issued by the DED or Free Zone Authority.
7. Open Corporate Bank Account
After licensing, the branch office can open a UAE corporate bank account to manage operations.
Cost of Opening a Branch Office in Dubai
The cost varies depending on location, business activity, and office size. On average, Indian companies can expect expenses related to:
- Government approvals and licensing
- Local service agent fees (mainland)
- Office rent and Ejari registration
- Document attestation and legal translation
A clear budget plan is recommended before initiating the process.
Compliance and Ongoing Requirements
Once established, the branch office must:
- Renew its license annually
- Maintain accounting records
- Comply with UAE labor laws
- File audited financial statements if required
Non-compliance can result in fines or license suspension.
Why Indian Businesses Choose Dubai for Expansion
Dubai offers Indian companies a unique combination of geographic advantage, ease of doing business, and global connectivity. With strong bilateral trade ties and a growing Indian diaspora, Dubai continues to be a preferred destination for Indian enterprises seeking international growth.
Final Thoughts
Opening a branch office in Dubai is a strategic move for Indian companies aiming to expand globally while maintaining full control over their business. With the right planning, documentation, and professional guidance, the process can be smooth and highly rewarding.
If you are considering establishing a branch office in Dubai, understanding the legal framework and choosing the right setup option will be the key to long-term success.