Branch Formation
Branch Formation
Branch Formation is the process of opening sub-offices in different part of the same Emirate or other Emirates. The main office can be located in one Emirate, for example, Dubai and branch offices can be opened in other Emirates like Sharjah and Fujeirah. UAE is already connected with a world class infrastructure facility, however, having branches around makes it easier for multiplying business opportunity without losing time.
Since a branch office is basically an extension of the main company, the liabilities are tied up to the main company. The activities are also to be the same as the main company. The branch office can be opened in free zone or the mainland, where both are governed by a different set of rules.
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There are a few advantages of having a branch office
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Branch offices have full ownership of the parent company.
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The finances are tied up to the parent company and hence audits become fairly simple.
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Branch offices have limited administration costs due to the size of it.
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A branch office gives the parent company a choice to continue the facility after reviewing its performance.
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The process of opening a branch office is the same as a business set up. We at Fimkins will take care of all the paper work related to it for you.