- The commercial companies law of the UAE permit foreign companies [including those wholly owned by non-UAE nationals] to establish a representative office in the UAE.
- The law does not expressly restrict the activities of a representative office of a foreign company.
- It is the current practice to grant such a representative office a license, which will entitle it to represent the foreign company, but not to trade or carry on business.
Representative offices either act as regional administrative offices or provide support for its products in the local market. The representative office is not permitted to import such products, trade or do invoicing. It should be noted that in addition to the above limitation representative office have other restrictions in that they are not allowed to obtain credit facilities or put forward offers. However, it can have a bank account for meeting its local expenses.
It is pertinent to note that it is mandatory to obtain necessary approval from Ministry of Economy for setting up a Rep office in Dubai.
As per the local regulations, representative office must appoint a UAE National, who will act as local service agent.
A Local Agent [UAE National] would need to be identified. His basic responsibilities would be to assist you in obtaining and renewing the license, and to assist in obtaining the necessary employment visas and renewing the same with the Dubai Immigration authorities and other governmental and semi-governmental departments and bodies.