Table of Contents
Frequently Asked Questions
What is a Companies Representation Licence in Dubai
A Companies Representation Licence (activity code 7010.91) allows a foreign company to establish a legal commercial presence in Dubai without setting up a full subsidiary. It authorises the Dubai entity to act as a representative or liaison office for a parent or affiliated foreign company operating internationally.
The licence permits promoting the parent company's interests in the UAE, coordinating business development, and liaising with local clients and government bodies. It does not permit independent trading or raising invoices in the Dubai entity's own name — revenue flows to the parent company.
What activity code and ISIC classification applies to a Companies Representation Licence
The licence operates under activity code 7010.91, classified within ISIC Division 70 — Activities of Head Offices and Management Consultancy Activities. More specifically, it falls under Division 70.10, which covers the activities of head offices including oversight, strategic direction, and representation of related entities.
Regulatory bodies in both free zones and on the mainland treat this as a low-risk, non-trading activity, which directly reduces approval complexity, compliance obligations, and the level of scrutiny applied during the licensing process.
Who is a Companies Representation Licence suitable for
This licence is well suited to foreign companies that need a Dubai address, a local point of contact, and the ability to attend tenders or meetings — without the cost and administrative weight of a full subsidiary. It is also appropriate for holding structures managing GCC or MENA operations from Dubai.
Common users include professional services firms, manufacturers, and technology companies with established international entities who want to access the UAE market before committing to a trading licence. It is particularly useful for early-stage market entry, allowing pipeline development and relationship building with the option to upgrade later.
How long does it take to set up a Companies Representation Licence
Setup timelines vary by jurisdiction. In a free zone, the process typically takes 5–10 working days when documentation is in order. On the mainland via the Dubai Department of Economy and Tourism (DET), the process generally takes 2–4 weeks.
The main variables affecting timeline are jurisdiction choice and the quality and completeness of the parent company's corporate paperwork submitted at the initial approval stage.
What is the difference between setting up in a free zone versus the mainland for this licence
Free zones such as Meydan Free Zone offer a streamlined path for representation activities, competitive costs, and 100% foreign ownership. They are well suited to companies prioritising speed and lower administrative overhead.
The mainland route via the Dubai Department of Economy and Tourism (DET) is the better choice when a physical office presence and direct UAE government engagement are priorities. Mainland entities can interact more directly with government bodies and participate in a broader range of local commercial activities.
Is there a minimum share capital requirement for a Companies Representation Licence
In most free zones, there is no mandated minimum share capital for a Companies Representation Licence. This is one of the factors that keeps setup costs manageable and makes the structure accessible to foreign SMEs as well as larger multinationals.
Requirements can vary by jurisdiction, so it is advisable to confirm the specific conditions of your chosen free zone or mainland authority before proceeding with an application.
Can a Companies Representation Licence be used to sponsor employee visas
Yes, visa eligibility is available under a Companies Representation Licence, subject to office space requirements and the specific rules of the chosen free zone or mainland jurisdiction. The number of visas typically depends on the size and type of office space held by the entity.
This makes the licence a practical option for companies that need to place staff on the ground in Dubai to carry out representation, liaison, and business development activities on behalf of the parent company.
What documents are required from the parent company to apply for this licence
At the initial approval stage, applicants are required to provide key parent company corporate documents. These typically include a certificate of incorporation, a memorandum of association, and a board resolution or power of attorney authorising the establishment of the representative office in Dubai.
The quality and completeness of these documents is one of the primary factors affecting how smoothly and quickly the application progresses. All foreign documents generally need to be attested and, where applicable, translated into Arabic before submission.
Companies Representation License in Dubai
Sometimes a foreign company needs to be present in Dubai without being a business in Dubai. It needs an address, somebody local to answer the phone, and the standing to attend a tender. What it does not yet need is a trading subsidiary. Activity code 7010.91 exists for that position.
The defining limit is that this entity does not trade. It cannot raise invoices in its own name, and revenue flows to the parent rather than through the Dubai office.
That single restriction is what keeps the regulatory load light. This guide covers what the license permits, who it suits, how mainland and free zone compare, the setup steps, and the parent paperwork that decides your timeline.
Key Stats at a Glance
| Activity code | 7010.91 |
|---|---|
| Activity name | Companies Representation |
| ISIC division | Division 70, Activities of Head Offices and Management Consultancy, specifically 70.10 |
| License type | Commercial or professional |
| Trade license issued by | Dubai Department of Economy and Tourism (DET), or the free zone authority |
| Regulatory treatment | Low-risk, non-trading activity in both jurisdictions |
| Setup time | 5 to 10 working days in a free zone, 2 to 4 weeks on the mainland |
| Minimum share capital | Not mandated in most free zones |
| License fee (free zone) | From roughly AED 12,500 a year including a flexi-desk |
| Bank account | 2 to 6 weeks, depending on the parent structure |
| Corporate tax | 9% on taxable income above AED 375,000 – Federal Tax Authority |
| Renewal | Annual |
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Calculate NowWhat This License Covers
Code 7010.91 sits in ISIC Division 70, covering head office activities and management consultancy. It authorises an entity to act as a representative or liaison office for a parent or affiliated foreign company operating internationally.
What you can do
Promote the parent company's interests in the UAE
Coordinate business development
Liaise with local clients and with government bodies
What you cannot do
Trade independently, or raise invoices in the Dubai entity's own name. The Dubai office represents; the parent transacts. That boundary is the whole design, and it produces a specific benefit.
Because regulators treat this as a low-risk, non-trading activity, approval complexity, compliance load and licensing scrutiny are all lower than for a trading entity. You accept a narrower scope in exchange for a lighter setup.
Who This Suits
The clearest case is a foreign company wanting a Dubai address, a named local contact and the standing to attend meetings and tenders, without the cost and administration of a full subsidiary.
Holding structures use it differently, as a formal vehicle for consolidating GCC or MENA oversight from Dubai, while professional services firms, manufacturers and technology companies use it as a controlled way into the market.
The most common pattern, though, is sequencing: representation lets you develop a pipeline and establish local credibility, then upgrade to a trading or professional license once commercial activity justifies it. That is a far cheaper way to test a market than setting up a trading company and discovering the demand is not there.
Mainland or Free Zone
| Factor | Mainland (DET) | Free Zone (Meydan Free Zone) |
|---|---|---|
| Local market access | Broader, including direct engagement with government contracts and tenders | Scope formally confined to free zone and international operations |
| Foreign ownership | Subject to DET activity approval | 100%, with no local sponsor |
| Setup time | 2 to 4 weeks | 5 to 10 working days |
| Premises | Ejari-registered tenancy contract | Flexi-desk satisfies most representation setups |
| Administration | Higher | Lower |
A free zone route gives 100% foreign ownership, faster processing and no local sponsor. The trade-off is that the activity scope is formally confined to free zone and international operations, so direct engagement with the UAE mainland market takes extra steps.
Mainland licensing through the Department of Economy and Tourism gives broader local access, including the ability to engage directly with UAE government contracts and tenders. It asks for compliance with DET activity approval and carries higher administration.
Ask what the office is actually for. If it exists to be visible to the mainland market and its government buyers, mainland earns its extra cost. If it exists to give an international parent a credible regional base, the free zone route does the job faster and cheaper. Let your clients decide it, not the price.
Step by Step Setup Guide
Step 1, choose your jurisdiction: Free zone for speed, full foreign ownership and lower administration. Mainland where physical office presence and direct government engagement matter.
Step 2, book your trade name: Confirm availability and compliance with UAE naming conventions before submitting anything. Names must not clash with a registered entity or breach cultural guidelines.
Step 3, submit initial approval: This is where the parent company documents go in, alongside passport copies for shareholders and managers.
Step 4, secure your premises: A free zone flexi-desk satisfies most representation setups. If your visa quota needs a physical office, arrange that up front. Mainland applications need an Ejari-registered tenancy contract.
Step 5, pay the fees and collect the license: In a free zone, issuance typically follows within 5 to 10 working days of documents being approved.
Step 6, open a corporate bank account: Allow two to six weeks, depending on the institution and how complex the parent structure is. A layered ownership chain slows this stage most.
Step 7, apply for residency visas: Investor or employee visas attach to the entity, with quota depending on office type and jurisdiction.
Compliance and What You Need in Place
Parent company documents
Parent company documents
This is the variable that decides your timeline. At initial approval you need the parent's certificate of incorporation, its memorandum of association, and a board resolution or power of attorney authorising the Dubai office. Foreign documents generally need attesting and, where relevant, translating into Arabic. Start that before you begin the application, because nothing moves until they are complete and correct.
Ultimate beneficial owner registration
UBO registration is mandatory under UAE Cabinet Resolution No. 58 of 2020 for all onshore and free zone entities. It is not optional and it belongs inside the setup process rather than after it.
Staying non-trading
The moment the Dubai entity invoices in its own name it is operating outside 7010.91. If commercial activity has grown to the point where you want to invoice locally, that is the signal to upgrade the license rather than to stretch the existing one.
VAT
Registration is needed where taxable supplies pass AED 375,000 a year. A representation entity with no direct UAE revenue may sit below that, but confirm with a UAE-qualified tax adviser rather than assuming.
Corporate tax
UAE corporate tax applies at 9% on taxable income above AED 375,000. Free zone entities may qualify for preferential treatment on qualifying income, again a question for specific advice based on what the entity does and how income flows.
Renewal
Renewal is annual, and late renewal brings fines and risks cancellation. That matters more here than for most licenses, because visa status and bank accounts tied to the entity both unravel if it lapses.
Market Opportunity
The demand for this structure comes from a permanent feature of doing business internationally: companies want to test a market before committing capital to it, and Dubai gives them an unusually cheap way to do that.
For a foreign parent, the alternative is either flying people in for every meeting or setting up a trading subsidiary before there is trade to justify it. Neither is satisfactory. A representative office costs a fraction of the second and solves the credibility problem the first creates.
The regional dimension adds to it. Dubai works as a base for GCC and MENA oversight, so a representation entity often ends up doing more than represent one market. It becomes a region's coordination point, a role the parent would otherwise have to build somewhere more expensive.
Conclusion
This is a precise, low-cost instrument for a foreign company that wants presence without commitment, and the light regulatory treatment follows directly from the non-trading restriction.
Three things determine how smoothly it goes: your jurisdiction, the state of your parent company's documents, and keeping up with annual compliance.
The documents are the one to start early. Attestation and translation take longer than people expect, and until they are done the application does not move whichever jurisdiction you have chosen.
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