Definition

A representative office is a type of foreign company presence that serves exclusively as a liaison, marketing, or research facility. Unlike a branch office or subsidiary, a representative office cannot engage in commercial transactions, sign contracts, generate revenue, or conduct direct trade within the host country. Its activities are limited to market research, brand promotion, quality control, and facilitating communication between the parent company and local stakeholders.

UAE Context

In the UAE, representative offices are registered with the Ministry of Economy and the relevant emirate’s Department of Economic Development. A UAE national service agent must be appointed to handle government liaison and administrative procedures. The representative office operates under the parent company’s legal identity and cannot issue invoices, sell goods, or provide services directly to UAE customers. It is commonly used by foreign companies conducting preliminary market research or maintaining a liaison presence before committing to a full branch or subsidiary. Representative offices are not subject to corporate tax on the basis that they do not generate revenue within the UAE.

Key Data

• Permitted activities: Market research, promotion, liaison, quality control
• Prohibited activities: Commercial transactions, invoicing, revenue generation
• Service agent: Mandatory UAE national service agent required
• Registration: Ministry of Economy and the relevant emirate DED
• Taxation: Generally not subject to corporate tax (no taxable income)

Significance for Vision 2031

Representative offices provide a risk-free entry point for international companies evaluating the UAE market. While limited in scope, they contribute to the country’s global business connectivity and often serve as precursors to larger investments, supporting Vision 2031’s goal of attracting diverse international enterprises across emerging sectors.

Related Terms

• Branch Office — A more active form of foreign company presence with trading rights
• Onshore Company — The fully operational mainland entity alternative
• FDI Law — The legal framework enabling foreign company structures in the UAE