The business setup process in Dubai or anywhere in the UAE is not easy. The foreign investor or business person might find difficulty due to a lack of knowledge of the rules and regulations set by the different government authorities in the UAE. The UAE government has made the local sponsor mandatory for Mainland business setup to make the investors and business owners comfortable. A local sponsor helps businesses with legal issues and solves them as they know all the rules and regulations. The local sponsor consists of 51% of the shares of the country.
It is not easy to start a business in a foreign country. You must have knowledge of their rules and regulations related to business setup and trading. In the UAE, local sponsors help a lot in this process. But, as a foreigner, it will be difficult for you to find a trusted local sponsor. Bizvisor can help you in this process. We have connections with many trusted local sponsors in the UAE and can help you find the perfect match to set up your business immediately.
The growth of the UAE market is continuous because of the interest shown by foreign investors. To make the setup process reliable for foreign investors, the UAE government has made a national partner who works as a local sponsor. As per the Law of the UAE Commercial Companies, the local sponsor must have 51% shares in the company, and the remaining 49% will belong to foreign investors.
As a foreign investor, it will be a challenging task for you to find a trusted local sponsor. At Bizvisor, we provide UAE national and local partner services, so you can get a genuine partner who can provide you with complete support in the company setup.
A person with UAE national/Emirati citizenship and a family membership card can become the “local sponsor” in the UAE. This local sponsor will work as a slipping partner for the foreign investor who wants to set up a mainland company in the UAE. The local sponsor must have an authentic UAE passport and consist of a share in the company’s profits.
The Local sponsor is only required if you plan to start the business in the UAE Mainland. There is no rule for local sponsorship for the companies in Free Zone regions or for some civil companies.
Now, when you have the proper information related to the local sponsor, you have to decide the role of the local sponsor depending on the activity you want to perform. From any of the following three sponsorship methods, you can set up business in the UAE:
1. Corporate Local Sponsor
A corporate local sponsor is mandatory for an LLC company, manufacturing company, or trading business. In such cases, the corporate local sponsor will get 51% of the company shares, and the foreign investor will have 49%.
2. Individual Local Sponsor
An individual local sponsor is mandatory if you want to set up a commercial business or an industry in Dubai. The local sponsor can be a resident, government officer, or business person. The foreign investor must assign at least 51% of company shares to the individual local sponsor.
3. Local Service Agent
A resident can act as a local service agent for professional businesses. This is the most common type of sponsor agent through which foreign investors can perform different types of professional companies in Dubai.
As a business person, you can’t spend your whole time finding a trusted local sponsor to set up the company in Dubai. There is no need to delay your priority task because Bizvisor’s skilled team can help you find the perfect local sponsor per your business needs. Contact us at +971 56 496 0040 to hire the most reliable local sponsor in Dubai.
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You must require a local sponsor if you are a foreign investor and want to set up an LLC company in Dubai. An individual who has UAE citizenship can become a local sponsor. They can also help you to fulfill different government requirements.
With the help of a local sponsor, you can do business within the UAE. This is one of the most important benefits. A local sponsor helps you to open multiple branches of your company within the UAE. You can also get residence visas for yourself and your family if your company has a local sponsor.
A UAE resident can be a local sponsor. For trusted local sponsors, you can contact Bizvisor. We’re providing UAE national and local partner services to help you get a reliable local sponsor as per your business requirements.
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