What do you need to know, before, setting up a mainland company in Dubai? | Sponsorship | Corporate or Local

You can choose from two kinds of sponsorship while establishing a mainland company in Dubai. Dubai being a commercial, trading and industrial hub in the region has made the process of setting up a company fast and easy!

The UAE commercial companies’ law requires that each company set up in the UAE should have at least one UAE national partner as a local sponsor who will hold a 51% of the company’s capital. Exemptions are companies set up in Free Zones, Sole Establishments, Civil Companies. The primary concern of a foreign entrepreneur when setting up an onshore LLC is that – UAE law requires a local partner to own 51% of the shares in the company.

Finding a known UAE national as a partner to entrepreneurs who are testing the UAE market for the first time becomes a challenging responsibility. To overcome such situations and to protect the interests of the foreign entrepreneurs, we at MSZ Consultancy extend the service of our sponsors who are silent partners in different mainland companies incorporated by us.

We have exclusive power of attorney from these sponsors with full company management powers with regards to their shares. Complete operational powers will be provided to the foreign shareholder or his representative appointed as manager in the company and the same will be mentioned in the ‘Memorandum of Association’.
Corporate-51% shareholder to set up a mainland company is to have a corporate as the 51% Shareholder. This corporate will be 100% owned by UAE nationals. Even in this legal structure, the foreigner can hold the power to manage the business and 100% financial benefits can be routed. This structure will be more flexible as the support of the entire management of the corporate firm is available at any point in time. Having a corporate shareholder will allow you to overcome certain legal requirements when compared to individual Shareholder.

Operations of a newly proposed company will not be hindered, even at unfortunate events like the death of the UAE national, because the 51% shares are held by a company and not an individual.

Corporate Sponsorship or Local Sponsorship?
The Choice of Sponsorship is totally dependent on the incorporator,  however, the advantage of a Corporate Sponsorship is that it gives you more financial freedom and personal sense of security.