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!
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