Who is a Local sponsor?
Local sponsor in UAE – The local sponsor is a UAE national’s, who acts as a service agent for your business in UAE and the local sponsor generally acts as a sleeping partner of the company.
Following are the three ways for foreign entrepreneurs to set up a business in UAE
Professional services
The Professional services licenses are issued to service providers such as doctors, lawyers, engineers, consultants and accountants. This is only the way for the foreign entrepreneur to set up business outside free zone and owns 100% of the shares, with the support of a local service agent.
LLC-Limited Liability Company formation
If you require a commercial or industrial license then you must need a local partner.
The local partner own 51% of the business, but profits do not have to be distributed accordingly.
Freezone company formation
Registering a company in a free zone is a straightforward way to maintain 100% ownership in your business without having to take on a local sponsor.
Following are the types of local partners/local sponsors in UAE
Corporate Partnership
The corporate sponsorship is similar to the individual sponsorship but here sponsor’s is the UAE national company and they hold 51% share of your business.
Individual Sponsorship
when a UAE national’s in his or her individual capacity becomes the local sponsor of a company.
Local Service Agent
If you want to open a professional services company then you need a local service agent. They will not hold your business shares. They will only represent a company in all administrative works and deals with government departments.
We at MSZ Consultancy, we provide assistance to find the right and reliable local sponsor for your New Company registration in Dubai or UAE. Contact us:+971 52 544 1248 or Email us: info@mszconsultancy.com
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