Foreign Subsidiary Company in Dubai | Setup Process, Requirements, Documents & Costs

A foreign company can establish a subsidiary in Dubai to expand its business into the UAE. The parent company may be based in India or another country, while the Dubai subsidiary operates as a separate UAE-registered entity.

The setup involves preparing the parent company’s documents, appointing a representative or manager, completing the MOA and licensing process, arranging a physical office and then completing post-incorporation requirements such as the establishment card, visas, MOHRE registration and employee onboarding.

What Is a Foreign Subsidiary Company in Dubai?

A foreign subsidiary is a UAE company owned or controlled by a company incorporated outside the UAE.

The parent company provides the corporate documents and authorisations required to establish the UAE entity. The Dubai subsidiary then obtains its own trade licence and completes the registrations required for its business activity.

A typical structure includes:

The exact incorporation requirements can vary depending on the licensing authority, business activity and company structure.

What Does a Foreign Company Need to Set Up a Subsidiary in Dubai?

The main requirements generally include:

Foreign corporate documents may need authentication and legal translation before they can be used for the UAE incorporation process.

Why Is the Board Resolution Important?

The Board Resolution gives the relevant person authority to establish and represent the UAE company.

What should the Board Resolution include?

It should clearly identify:

• Authority to establish the UAE company
• The company’s representative
• The appointed manager
• The specific powers granted to that person

The manager’s full name should be included, along with the father’s name where required for identification.

Should the Board Resolution give “all powers”?

It is better to clearly specify the powers that the representative or manager will need.

For example, if a manager may later need to sell a company vehicle, sign a particular agreement or complete a specific transaction, the relevant authority should be clearly covered rather than relying only on a broad statement of “all powers.”

This helps avoid situations where a transaction cannot be completed because the person’s authority does not clearly cover it.

Who Can Represent a Foreign Subsidiary in Dubai?

The subsidiary needs a representative or manager for relevant company procedures.

The person’s authority should correspond with the powers granted through the company’s corporate documents and applicable authorisations.

A manager or General Manager appointment by itself should not be treated as automatic permission to work in the UAE. Work authorisation and immigration requirements are separate considerations.

Does the Subsidiary Manager Need an Emirates ID?

When is an Emirates ID required?

An Emirates ID may be required for the manager to complete certain company representation and signing procedures.

What if the manager does not have an Emirates ID?

Where the relevant process requires an EID holder, an MOJ Power of Attorney can be given to an eligible person who has an Emirates ID.

This allows the authorised EID holder to complete the applicable procedure on behalf of the person granting the POA.

Can a subsidiary have multiple managers?

Yes. A company may have multiple managers.

If only one manager has an Emirates ID, the MOA signing arrangement can be structured as a single or joint signing arrangement depending on the authority applicable to the company.

How Is the MOA Signed?

Dubai Court MOA signing

Where the applicable incorporation process requires Dubai Court signing, the person completing the signing procedure needs the required identification, including an Emirates ID where applicable.

What if the person does not have an Emirates ID?

An MOJ POA can be arranged in favour of an eligible EID holder to complete the required signing procedure.

What if there are multiple managers?

If there are several managers but only one has an Emirates ID, the MOA can be arranged for single or joint signing based on the company’s approved signing authority.

The exact signing process can vary according to the licensing authority and company structure.

What Documents Are Required for a Foreign Subsidiary in Dubai?

Note: Additional documents may be required depending on the parent company’s jurisdiction and the licensing authority.

The Legal Representative information can be provided on company letterhead with the company seal and authorised signature, where accepted.

How Much Does It Cost to Set Up a Foreign Subsidiary in Dubai?

The total cost depends on the business activity, licensing authority, office arrangement, number of signatories, approvals and other requirements.

The setup can include incorporation, MOA, Board Resolution, attestations, Arabic translation, DET charges, MOA signing and the final voucher.

Indicative costs include:

MOA signing costs can vary depending on the number of people signing.

The final voucher is used for the applicable DET payment. Once the required payment and other formalities are completed, the trade licence can be issued.

Note: Government charges, office costs and activity-specific fees can change, so the exact amount should be confirmed when the application is submitted.

How Does Business Activity Affect the Setup?

Why is the specific activity important?

The business activity needs to be selected carefully. A broad business category does not automatically cover every individual activity.

The selected activity determines whether additional approvals or requirements apply.

Which authorities may be involved?

Depending on the activity, approvals may involve authorities such as:

• SIRA
• DET
• Dubai Municipality
• RTA
• TDRA
• Other relevant regulators

Can an activity create additional costs?

Yes. Certain activities may require additional arrangements such as:

• Commercial premises
• Housing
• Waste lines
• Kitchen facilities
• Activity-specific approvals
• Other operational requirements

Additional RERA or Ejari-related charges may also apply depending on the premises and licensing arrangement.

Does a Foreign Subsidiary Need a Physical Office?

A physical commercial space may be required for the setup, depending on the licensing route and business activity.

The office arrangement generally involves:

1. Selecting suitable commercial premises.
2. Completing the required lease arrangement.
3. Obtaining Ejari.
4. Completing any required inspection or verification.

An indicative Ejari cost is around ~AED 2,500, although actual market costs can vary.

A virtual Ejari should not be assumed to be acceptable for every incorporation process.

What Happens After Incorporating the Foreign Subsidiary?

Once the company is incorporated and the trade licence is issued, the next steps may include:

• Establishment Card
• Investor/Partner Visa, where applicable
• MOHRE file
• Labour inspection
• Visa quota
• Employee visas
• WPS registration and salary processing

What Is the Establishment Card?

The establishment card creates the company’s immigration file and is used for relevant employee and visa procedures.

For a Dubai company, the process is generally handled through GDRFA Dubai, while ICP is relevant for applicable procedures in other emirates.

What documents are needed?

Depending on the application, requirements may include:

• Emirates ID of the authorised person
• Company trade licence
• Establishment-related documents
• Lease information
• Other identification or company documents

The person whose details are recorded on the establishment card has the relevant authority to carry out applicable establishment-file procedures.

The establishment card also needs to be renewed as required.

Can a Foreign Subsidiary Apply for an Investor or Partner Visa?

After completing the establishment process, an eligible shareholder or partner may apply for an investor or partner residence route.

The documents and eligibility requirements depend on the visa category and individual circumstances. GDRFA’s partner/investor residence services include requirements such as a passport, partnership or investment documentation and a valid trade licence.

Any capital or investment threshold should be checked against the specific visa route being used rather than treated as a universal requirement.

How Does a Foreign Subsidiary Start Hiring Employees?

MOHRE file

The company needs the appropriate MOHRE registration before proceeding with employment-related processes.

The setup cost can be around ~AED 525, depending on the applicable service and circumstances.

Employees who already have UAE visas

Employees holding Free Zone, dependent or other eligible UAE residence visas may follow a different work-authorisation process, including person-code procedures where applicable.

MOHRE authorisation

The relevant company authorisation may involve UAE Pass and an Emirates ID.

What Is the Labour Inspection Process?

The company may need to complete a labour inspection or Taqeem process before obtaining its employee visa quota.

The inspection may require:

• Trade licence
• Emirates ID
• Company name board
• Owner or authorised person’s presence

After the applicable inspection, the company can proceed with the visa quota process.

How Does Visa Quota Work?

The company can apply for an initial employee visa quota.

Additional quota may require a business justification and supporting documents showing the company’s operational requirements. These can include:

• Vendor agreements
• Business contracts
• Project documents
• Other evidence supporting the required workforce

The applicable quota and supporting requirements depend on the company’s business and the relevant authority.

What Are the MOHRE Company Categories and Fees?

Indicative categories and fees may include:

The applicable company category and fee should be checked with MOHRE for the specific establishment.

What Should an Indian Company Know About Setting Up a Dubai Subsidiary?

An Indian company can establish a UAE subsidiary, subject to the applicable UAE licensing and incorporation requirements.

The parent company would generally prepare:

• Certificate of Incorporation
• MOA
• Board Resolution
• Arabic translation
• MOJ attestation
• MOFA attestation

The Board Resolution should identify the representative and manager and clearly provide the powers required for the UAE setup and future transactions.

If the Indian manager does not have an Emirates ID, an MOJ POA may be used to authorise an eligible EID holder for applicable procedures.

Can a General Manager Automatically Work for the Company?

No. Appointment as General Manager and permission to work are separate matters.

The person needs the appropriate employment or work authorisation for the role. Salary payments for employees also need to follow the applicable WPS requirements.

Similarly, holding an investor visa does not automatically give a person permission to work for another company. A separate work authorisation may be required.

What Happens If an Employee’s Visa Expires?

Visa and labour-card expiry dates should be monitored separately because they may not always fall on the same date.

The process may involve:

• Visa overstay penalties after expiry
• Labour-card-related penalties
• Renewal or cancellation procedures

An indicative overstay amount may be around ~AED 50 per day, while the labour-card penalty may be around ~AED 200 per month, depending on the applicable case and current rules.

What Happens After an Employee Enters the UAE on an Employment Visa?

The employee should enter within the validity period of the entry visa and then complete the required residence procedures.

These may include:

• Biometrics
• Medical fitness procedures
• Residence processing/stamping

Where an entry visa provides a two-month validity period, the employee should complete the required steps within that period.

The exact validity date shown in the immigration system should always be checked.

What Happens If an Employee Is Medically Unfit?

If an employee is found medically unfit for the applicable residence process, the required immigration and employment procedures need to be completed accordingly.

The employee may need to leave the UAE, while the company must take the required action on the visa and employment file. Any refund will depend on the applicable process and payment terms.

Foreign Subsidiary Company in Dubai | Complete Checklist

FAQs

Can a foreign company open a subsidiary in Dubai?

Yes. A foreign company can establish a UAE subsidiary, subject to the applicable licensing, activity and incorporation requirements.

Can an Indian company open a subsidiary in Dubai?

Yes. An Indian company can establish a subsidiary in Dubai by completing the required corporate documentation and UAE incorporation procedures.

What documents are required from the foreign parent company?

The main documents include the Certificate of Incorporation, MOA, Board Resolution, Arabic translation and required attestations.

What should the Board Resolution contain?

It should identify the authority to establish the UAE company, the representative and manager, and the specific powers granted to them.

Does the manager need an Emirates ID?

An Emirates ID may be required for specific representation and signing procedures. Where the relevant person does not have one, an eligible EID holder may be authorised through an MOJ POA for applicable procedures.

Does a foreign subsidiary need a physical office?

A physical commercial space may be required depending on the licensing route and business activity.

What happens after the trade licence is issued?

The company can proceed with its establishment card, applicable visa processes, MOHRE registration, labour inspection, visa quota and employee onboarding.

Can a General Manager automatically work for the company?

No. Management appointment and work authorisation are separate requirements.

Can an investor visa holder work for another company?

Not solely because they hold an investor visa. The appropriate work authorisation for the other company is required.

What happens if an employee’s visa expires?

The company should check the visa and labour card status separately and complete the applicable renewal, cancellation or other immigration procedures to avoid penalties.

Conclusion

Setting up a foreign subsidiary in Dubai involves more than obtaining a trade licence. The parent company needs to prepare the right corporate documents, define representation and signing powers, select the appropriate business activity, arrange premises and complete the required post-incorporation procedures. Planning these steps together can make the setup smoother and help the company remain compliant as it begins operations in the UAE.

Official references

• GDRFA Dubai – Establishment Card for Private Sector/Free Zone
• GDRFA Dubai – Green Residence for Investor/Partner
• MOHRE – Work Permit Quota Service Requirements
• UAE Ministry of Justice – Digital Power of Attorney Services
• UAE Ministry of Justice – Digital Power of Attorney for Company Management