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
Find out how much it cost you to setup your Dream Business
Other Recent Blogs
Fintech in Dubai: The Future of Financial Services
Fintech in Dubai Dubai has been a pioneer in innovation and technology, and its emergence as a hub for fintech companies has been a significant milestone in the region's financial industry. The Dubai International Financial Centre (DIFC) has been at the forefront of...
Women in Business: Empowering Female Entrepreneurs in the UAE
Women in UAE Business The UAE has steadily grown to become a lucrative hub for entrepreneurship in recent years, attracting individuals from all over the world to set up their businesses. And as the business landscape in the UAE continues to evolve, the region is...
The UAE Launches New Golden Visa Platform
The UAE Golden Visa Program The UAE has been gaining attention recently for its "golden visa" program, which offers long-term residency to foreigners who invest in the country. Now, the UAE is taking its golden visa program to the next level by launching a new...
Augmented/Virtual Reality and Its Impact on the UAE Economy
Virtual Reality and the UAE The United Arab Emirates (UAE) has been at the forefront of embracing cutting-edge technologies, and the integration of augmented reality (AR) and virtual reality (VR) into the lives of its citizens is no exception. In recent years, the UAE...
Become a Resident of Dubai: Options for Investors and Global Citizens
Dubai’s Residency Program Dubai is a thriving global business hub that offers investors and entrepreneurs a wealth of commercial business opportunities. And as one of the most innovative and business-friendly cities in the world, Dubai has attracted investors and...
Mainland Company Formation in Dubai Without a Local Sponsor
Mainland Dubai Company Formation Dubai is home to a large market and a number of different jurisdictions that give investors the ability to work in a vibrant market with relaxed tax responsibilities. One such jurisdiction is known as Dubai’s Mainland, a region that’s...
Subscribe to Our Newsletter
We’ll keep you updated on the latest trends and news