Who is a Local sponsor?
Local sponsor in UAE – The local sponsor is a UAE nationalโs, 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 Sponsorshipย
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.ย 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
Find out how much it cost you to setup your Dream Business
Other Recent Blogs
Five Exciting Mega-Projects Set to Boost Economics in the UAE, Saudi Arabia, and Beyond
Middle Eastern Mega Projectsย In recent years, the United Arab Emirates (UAE) and Saudi Arabia have embarked on ambitious mega projects to bolster their economies and enhance their global standing. These projects, characterized by their massive scale and innovation,...
Five Business Strategies Every UAE Startup Needs for Sustainable Growth
Business Growth in the UAE In recent years, the UAE has emerged as a global leader in commerce and trade, with investors from all over the world traveling to the region to conduct business. For these small to midsize enterprises (SMEs), there has never been a better...
New UAE Residency Rules and Visit Visa Extension for 2023
Changes in UAE Residency Rules Dubai, being one of the most popular emirates in the UAE, often has specific regulations related to visit visas and residency. These rules can include duration of stay, requirements for obtaining or renewing visas, and potential pathways...
Delivering the Goods: How Dubaiโs Logistics Sector is Evolving Alongside Online Retail
Dubaiโs Logistics Sector: A Market in Growth Mode The landscape of Dubai's logistics sector is undergoing a massive transformation thanks to the rapid growth of online retail commerce. This surge in e-commerce activities, both locally and globally, has spurred a wave...
Your Checklist for Mainland Business Setup in Dubai
Mainland Company Setup in Dubai Mainland business setup in Dubai offers a range of opportunities for entrepreneurs looking to establish a strong presence in the UAE. Thanks to its strategic geographic location and business-positive environment, the region has grown...
The UAE Announces Major Changes to Emiratization Rules
Emiratization Rule UAE The UAE has recently made efforts to bolster its local workforce through a series of amendments to its Emiratization rules. This strategic move is part of a broader Emiratization campaign to enhance the employment prospects for Emirati nationals...
Subscribe to Our Newsletter
We’ll keep you updated on the latest trends and news