[EXPLAINED] The difference between a representative office and a company’s representation

Before we get into the differences between a representative office and a company representation business, let’s take a look at each one separately.

Identifying a representative office and a company’s representation

A representative office is a branch or extension of the parent company’s headquarters. It is a small division representing only one company. All of its activities and outputs are for the benefit of the headquarters and to facilitate the operations of the main office. Company representation enterprises, on the other hand, are agents who can promote a number of foreign businesses on a local level.  Furthermore, this service is available to both commercial and corporate entities.

Furthermore, company representation companies can provide franchise models to international chain organizations. The government, on the other hand, must grant them a franchise agreement. This legal document outlines the franchisor’s expectations as well as all operational details.

Establishing a presence in Dubai

The steps for establishing a representative office in Dubai are outlined in the following section.

as well as the accompanying documentation:

The procedure for establishing a branch office

Depending on the nature of the headquarter’s business, the branch office can be either a professional sole proprietorship or a commercial limited liability company. The overlapping procedure for establishing a branch office with either of the company’s structures includes the following steps:

1. Obtaining approval for the initial and name

2. Payment of different governmental fees, such as the Tasheel fee, license fee, and annual fee

3. Completing your ejari (tenancy contract).

4. Obtaining TRA authorization, LSA notarization, and a company stamp

5. Paying for foreign name fees

Documents needed for a representative office

Sole Proprietorship (Individual Shareholder)

• Copies of passports
• Copy of a visit visa or a resident visa
• Residents must obtain a No-Objection Certificate (NOC) from their employer/sponsor, as well as a copy of their Emirates ID.
• a passport-sized color photograph
• Choices for a trade name or a corporate name (to check their availability)

Commercial Establishment (Corporate Shareholder)

• Manager’s passport photocopy
• Copy of the manager’s visit visa or resident visa
• Residents must obtain a No-Objection Certificate (NOC) from their employer/sponsor, as well as a copy of their Emirates ID.
• a passport-sized colour photograph
• Choices for a trade name or a corporate name (to check their availability)
• Documents of the parent company – Incorporation Certificate – Board of Resolution – Articles of Association – Share Certificate – Memorandum of Association

Establishing a company registration business in Dubai.

This section will explain the process of establishing a company registration business in Dubai, as well as the necessary documents.

How to Become a Company Registration Agent

This business is classified as a service by the Department of Economic Development. As a result, entities representing international companies in Dubai must obtain a professional license. Obtaining initial and name approvals; paying various government charges such as the Tasheel fee, license fee, and yearly fee; obtaining your ejari (tenancy contract); obtaining TRA approval, LSA notarisation, and company stamp; and paying foreign name charges are all part of the process (if any). However, only experienced business setup professionals will can provide you with the best advice.

Documents needed

1. Photocopy of a passport

1. Copy of a visit visa or a resident visa

3. Additional requirements for holders of resident visas

– A No Objection Certificate (NOC) from the employer/sponsor will be required.

– A coloured photograph in the size of an Emirates ID Passport

4. Trade name / company name options (to check their availability)

5. Information about the proposed company’s activities

• you also may need legal translation services in Dubai to help you translate any official documents you want.

Which is better: a representative office or a company representation agent?

Businesses that are able to evaluate the international waters may wonder – Should we open our own representative office in our target location or use a company representation firm? Experts advise choosing a company representation agent and assessing the market first. As a result, they may later decide to open a branch office by obtaining the necessary licence.