Not Knowing This Could Create Long-Term Headaches for Your Business
A branch license in the UAE sounds like a simple expansion move — but if you don’t fully understand how it works, you could lock yourself into a structure that doesn’t suit your long-term goals.
Let’s break it down.
What Exactly is a Branch License?
A branch license allows an existing company to legally operate under the same brand name in a different UAE location.
So if you’ve got a company in Dubai and want to open a location in Abu Dhabi, a branch license helps you do that — without setting up a brand new company.
Same name
Same ownership
Same activities
Just a new location
When Does a Branch License Make Sense?
A branch license is ideal for companies that:
- Want to expand across multiple Emirates
- Need to operate in strategic markets like Abu Dhabi, Sharjah, or RAK
- Want to retain the same branding and business structure
- Already have an established main company (Mainland or Free Zone)
But Here’s the Catch…
While a branch license sounds like a smart move, it’s not always the easiest:
- You must replicate the exact same activities as the parent company
- Ownership structure must be identical
- Certain government approvals take longer than a new company setup
- You’ll have less flexibility in terms of how you operate the branch
- All liability is tied back to the parent company
That’s why many businesses end up rethinking the decision and opt to open a new, independent legal entity instead.
Real Case: When a Branch Didn’t Work
One of my clients — a tech solutions firm — wanted to open a branch in Abu Dhabi. After reviewing their service model, we realized they needed different licensing activities that the parent company didn’t have.
The fix? We scrapped the branch idea and launched a new standalone entity. It gave them flexibility, faster approval, and separate books for scaling.
So What Should You Do?
A branch license can:
- Strengthen your brand presence
- Expand your UAE footprint
- Streamline operations under one umbrella
But if your strategy needs activity changes, new partners, or operational freedom, then setting up a new entity may be smarter.
Need Help Deciding?
Let’s weigh the pros and cons for your business specifically. Book a free consultation and I’ll help you choose the structure that fits your growth plans best — without locking you into a setup you’ll regret.
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