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Ras Al Khaimah: Types of Company

Branches and Representative Office of Foreign Commercial Companies

A foreign company can establish a branch or representative office in the UAE. The registration of a branch/representative office of the foreign company does not constitute the establishment of a new company or separate legal entity. Consequently, the foreign company will be fully responsible for the liabilities of its branch/representative office. A representative office theoretically is limited to gathering information and marketing the activities of its parent company and is issued with a professional (i.e. non-trade) licence. By contrast, a branch office is a fully-fledged business, permitted to perform contracts or conduct other activities in the name of its parent company. Such activities must be specified on the branch office trade licence and must be related to the objects of the parent company.



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