A Representative Office of a Foreign Company in the UAE is a business structure that allows an overseas company to establish a presence for non-commercial purposes, such as market research, promotion, or client liaison, without engaging in direct sales or profit-generating activities. Set up on the UAE mainland, it requires a local service agent and operates as an extension of the parent company, which retains full liability for its actions. Unlike trading entities, it is not subject to corporate tax on profits since it doesn’t generate revenue locally, though administrative costs apply. This setup is ideal for foreign firms testing the UAE market or supporting existing operations, leveraging the country’s strategic location and infrastructure. It offers a low-risk entry point but limits activities to representation rather than full-scale business.
