Expanding a UK recruitment firm: branch or new UAE company?
A large UK recruitment group, focused on fintech and tech, with an existing board, shareholders and investors. For the expansion into the UAE the choice was a branch of the UK company or a separate new UAE company, and we recommended a branch in DMCC, a Dubai free zone.
Speak to us about your situationThe situation
The group had a substantial UK operation and wanted to expand into the UAE. With a board and investors behind it, how the UAE arm was owned and reported mattered as much as getting it open — it had to be something the board could see clearly and stand behind.
Why they came to us
After a series of online meetings with their management team, Simon and his colleagues chose us because we gave accurate information, replied quickly, and set out clear pricing — which let the board cost the expansion before committing.
What we recommended
A branch of the UK company, run in DMCC, a Dubai free zone, rather than a separate new UAE company. A branch sits directly beneath the UK parent, which gave the board and investors a clean line of ownership; DMCC fit because the activity matched and its reputation reassured an institutional client.
DMCC explains the difference in one line: "A branch is an extension of the parent company, while a subsidiary is a separate legal entity." A subsidiary is a separate company owned by the parent. DMCC adds that in a branch the parent company bears full liability, whereas a subsidiary has its own liabilities. Both points are from DMCC's page on opening a branch.
The hard part wasn't the licence — it was obtaining and attesting the UK corporate documents a branch needs, which we managed through to completion. Attesting them means having them officially stamped so the UAE will accept them. Our page on opening a branch office in Dubai sets out how that works.
We arranged office space, Simon's visa as manager and his wife's, and later employee visas as they hired.
Boards ask a different question from owners — who owns the thing and how it reports — and on a Dubai branch that is the first thing we settle at Start Business Services, because the ownership line is the painful one to change afterwards.
The outcome
The branch was established, the office secured, the visas completed, and hiring began. We handle their ongoing compliance.
Thinking about a move like this?
Tell us what the business does and where it is heading, and we will tell you whether we are the right firm.
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