Branch of foreign company in Sharjah
Foreign companies are permitted to establish their own branches and representative offices in Sharjah. However, these offices have a limitation in the activities they may conduct within the U.A.E. As per the law (Article 314 of the Commercial Companies Law ) in UAE , only UAE citizens or companies fully owned by UAE nationals may be appointed as local agents. Local agents or sponsors are not involved in the operational side of the company, but they just merely assist in obtaining visas; labor cards etc, and is paid a lump sum and/or a percentage of the profit or turnover. A popular way for foreign companies to retain 100 per cent foreign ownership in Sharjah is to set up a branch or representative office. These offices do not have a separate legal identity but are considered as an extension of the foreign company, which remains liable for their whole activities.
The primary difference in-between a representative office and a branch office is that a representative office theoretically has limitation to gather information and solicit orders and projects to be performed by the company's head office. In the case of representative offices, they are also limited in the number of employees they may sponsor (typically three or four).In fact, a representative office functions as an administrative and marketing hub for the foreign company. A branch office can engage in commercial activity in the UAE and can earn profits as per the license granted. Danburite Business Consultancy Service helps companies to get done all documentation and support prior to the business operation in Sharjah.Our tailored solutions will help clients to meet the legal requirements of all concerned government authorities and guarantee maximum commercial benefit for the business owner.