Local Sponsorship in the UAE

Find a Reliable Local Sponsor in Dubai with MSZ Consultancy

Business setup in Dubai or anywhere across the UAE can be difficult for foreign entrepreneurs due to the lack of knowledge in local policies and regulations. To tackle these issues, the UAE government has made it mandatory for a foreign businessman to have a local sponsor with a Mainland business setup. A local sponsor in UAE is a local resident of the country that will help your business with any legal issues and hold at least 51% shares of the company.

Starting a business can be challenging enough, and so can the process of looking for a local sponsor for your company formation in Dubai. But that’s where we can help! MSZ Consultancy has connections to the most trustworthy local sponsors in the UAE and can quickly help you find your match to get your business setup in no time.

MSZ Consultancy is Your Leading Local Sponsorship Company in Dubai

We at MSZ Consultancy can find a feasible and reliable UAE local sponsorship that you can trust with your company. After we’ve helped you select the perfect person for your company formation, this person will help you navigate through government requirements to get the approvals you need.

Not all business setups require a local sponsor in UAE Mainland. A local sponsor will depend on your business activity. For instance, professional companies, branches, and representative offices don’t require a local sponsor. These businesses can enjoy 100% foreign ownership. If you’re unsure whether your business needs local sponsorship in Dubai or the UAE, call MSZ Consultancy at +971 58 982 7842 for a free consultation, and we will figure out all your business needs.

Finding a Local Sponsor to Serve as Your Sleeping Partner for Business in Dubai

Business setup in Dubai comes with various rules and regulations. These rules are different depending on the area where you choose to setup your company. There are three areas you can choose from for business formation:

  • Mainland Company in Dubai
  • Free Zone Company in Dubai
  • Offshore Company in Dubai

If you choose to do business in Dubai Mainland, a local sponsor will be mandatory. This is a law that is put in place by the UAE government. The law states that a local sponsor will be appointed to serve as a representative for dealings with the government and the ministries for getting various paperwork done.

A local sponsor is a UAE national, or an Emirati, who acts as a sleeping partner of your company. Generally, the local service agent has no specific interest or role in the business. The sponsor’s sole purpose is to establish a relationship with the authorities and the government departments in the UAE. They will work to get the immigration and labor approvals, the visas you need, and to complete all the other required paperwork for the company. The local service agent is paid a yearly fee for his service.

Why is a Local Sponsor Needed in UAE?

The UAE market continues to grow in popularity as a spot for foreign investors. To help with setup, all companies in the UAE must have a national partner who is acting as a local sponsor. The UAE Commercial Companies Law states that a local sponsor will hold a 51% share in the company, and 49% share will belong to the ex-pat business owner of the company.

Our corporate service specialists can help you find a local sponsor to facilitate a timely, easy, and simple transition into the UAE business market.

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Who Can Be a Local Sponsor in UAE?

The term “local sponsor” refers to a person who is a UAE national/Emirati citizen that has a family membership card. The sponsor will serve as a sleeping partner for Mainland companies with foreign investment. The sponsor must be a local resident of the country, hold a valid UAE passport, and have a share in the profits of your company.

The local sponsorship rule only applies to the UAE Mainland. A sponsor isn’t required in Dubai Free Zone regions or for some civil companies.

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Corporate Local Sponsor

If you plan on setting up an LLC company, manufacturing company, or trading company, you will most likely seek corporate local sponsorship. The corporate firm will sponsor the foreign firm and hold 51% of shares. The remaining 49% of shares will go to foreign shareholders.

Individual Local Sponsor

This can be a local resident, government officer, or any other businessperson that wants to take part as a local sponsor in Dubai. This type of sponsorship is best for those opening a commercial business or industry in Dubai. The individual local sponsor will hold at least 51% of the total equity shares.

Local Service Agent

This is a service agent who is a local resident and agrees to act as a sponsor for a company. This type of sponsorship is best for professional businesses.

Choose the Right Local Sponsor in UAE with MSZ Consultancy

Worried about choosing a local sponsor in UAE? Don’t be! Leave that to us. MSZ Consultancy can help you to find the best local sponsor in Dubai or anywhere in the UAE. We are proud to be one of the leading sponsorship companies in Dubai. We can help you find a trustworthy UAE national/Emirati that you can trust to serve as the local sponsor for your new business. What are you waiting for? Give us a call at +971 58 982 7842, and let us do all the work!

Frequently Asked Questions

What exactly is a local sponsor, and do I need one?

A local sponsor is a UAE national that will own at least 51% of your business. They will also help with any government requirements for setting up your business. If you’re a foreign investor, then a sponsor is required.

What you should know about local sponsorships?

  • Will a local sponsor help with my business?

If you’re looking for someone to help run your business, this isn’t what a local sponsor does. A local sponsor provides the service of letting a foreign entrepreneur run businesses in the UAE Mainland and act as a local representative for the business, but they aren’t usually involved in the day-to-day operations.

 

  • A high-profile sponsor isn’t always the best choice.

There are many high-profile people and celebrities that offer sponsorship, but you could end up paying a big price for the same service you could get somewhere else.

 

  • What can go wrong with a local sponsorship?

In some rare cases, things can get messy if an individual sponsor dies and their heirs aren’t interested in being a sponsor. You can help prevent this by going with a corporate sponsor rather than an individual.

What are the key benefits of working with a local sponsor?

One of the main benefits of using a local sponsor is that you’ll be able to trade locally within the UAE. Companies with a local sponsor also have the advantage of opening limitless branches throughout the UAE. Also, when you form a business with a local partner, you are given investor status in the UAE, which allows you to get residence visas for yourself and your family.

What is the difference between a local sponsor and a corporate sponsor/corporate nominee?

A local sponsor is common for an LLC business. With a local sponsor, UAE national owns 51% of shares in a Mainland LLC. The Emirati sponsor may give a Power of Attorney to the foreigner in exchange for a fixed annual fee.

A corporate sponsor is required for a Mainland business with a commercial license or industrial license.

What business activities require a local sponsor?

A local sponsor, corporate sponsor, or corporate nominee are required for a commercial, professional, and industrial license.

What are the law requirements for commercial companies and local sponsors?

To meet the company registration requirements in UAE, an investor or entrepreneur who wants to open a company or branch office in the UAE will need to choose between an individual sponsor or a corporate sponsor to meet the requirements.

What are the benefits of a corporate nominee sponsorship?

With this type of sponsorship, you get full control of your company, 100% financial benefits, and full control of company voting rights. You also get any and all documentation your business will need.

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