Local Sponsor in UAE refers to local service agents and nominee shareholders in mainland companies with foreign investments. It is mandatory that a sponsor has to be a UAE national. A local sponsor in the UAE acts as a sleeping partner in your business who has to own at least 51% of shares in the company. He has to be a local resident of the country and must hold a valid Dubai passport.
Types of local UAE sponsors:
- Corporate Local Sponsor:
A corporate firm is that which is established and registered in Dubai can provide local sponsorship to a foreign company that is willing to set up business in Dubai. The corporate firm will sponsor the foreign firm and will hold 51% of equity shares. This type of local sponsorship is very common and suitable for opening an LLC in Dubai
2. Individual Local Sponsor:
An individual local sponsor is a local resident who can take part as a local sponsor in Dubai. It is not mandatory for a local sponsor to be involved in any business activity. This type of sponsorship is suitable for opening a commercial business in Dubai.
3. Local Service Agent as Sponsor:
A local resident who agrees to act as a sponsor for the company in Dubai. This type of sponsorship is suitable for opening a professional business in Dubai.
How to find a local UAE sponsor?
- Check whether the local sponsor is a resident of Dubai
- Investigate his family background
- Qualification status of the sponsor should be verified
- Get the sponsorship agreement deed verified before signing it
- Be precise on the fees to be paid to a local sponsor
Why do you need a local sponsor?
One of the essential functions for starting a business in Dubai is to partner with a local UAE sponsor. You need a local sponsor to regulate in accordance with the UAE law. Having a local sponsorship in UAE allows you to take the benefit of setting up an LLC in Dubai.
Choose the right local sponsor with the help of MSZ Consultancy!
Finding the right local sponsor can be a tedious task in Dubai. Consulting an expert about the local sponsorship will help you in your business. Contact MSZ Consultancy, our team of experts will guide you in finding a suitable local sponsor for your business. Get in touch with us today!
Find out how much it cost you to setup your Dream Business
Other Recent Blogs
Are you wondering if your company needs to register for Value Added Tax? Value Added Tax, or VAT, is one of the most common types of tax around the world. More than 180 countries have implemented this tax, including the UAE. While some countries have raised their tax...
The United Arab Emirates is known around the world for its business-friendly environment. Over the years, the country has put new rules and regulations into place to attract foreign investors, and it has paid off big time! Switzerland, the United Kingdom, India, the...
There’s no doubt that the pandemic has impacted the way that businesses operate. Business owners in Dubai and from all around the world had to change their structure and uncover new opportunities to succeed during the pandemic.
Officials in the UAE are hoping for an explosion of foreign investment, that’s because they’ve revamped their company laws to allow foreign investors to fully own local companies without the need of an Emirati sponsor. This is a huge deal for foreign entrepreneurs!
If you’re thinking of starting a business in Dubai, you can’t go wrong with a travel agency. The tourism industry is booming due to the popular shopping spots, stunning architecture, dining,
If you’re a female entrepreneur, the United Arab Emirates is the place to be. That’s because the country offers greater gender equality than any other country in the region. And women entrepreneurs are noticing because now, more than ever before, women are taking...
Subscribe to Our Newsletter
We’ll keep you updated on the latest trends and news