Local sponsor in Dubai, UAE
Local sponsor in Dubai, UAE
Things you should know
Dubai has a friendly and enticing business atmosphere for businesses from every corner of the globe. For the first time entrepreneurs in Dubai, it is always doubted whether they need a local sponsor in Dubai or not. The response depends on many factors like the nationality of the investor, the type of business you want to build up, etc. A professional company like AMG can help you to identify your business activities and sponsorship requirements as to whether you need a local sponsor or you are eligible to get 100% ownership in UAE. We will also help you find a local sponsor if you need one.
Does your company need a local sponsor in UAE?
Just 49 percent of the businesses in the mainland which is subject to commercial or industrial license can be owned by an expatriate in UAE. The remaining 51% of the share must be owned by a local sponsor in UAE. However, if your business set up is in a free zone or if your business activity is subject to a license for professional services, then a local sponsor is not necessary.
Type of local sponsorships in Dubai, UAE
The type of local sponsorship required depends on the type of activity that the business will be engaging in.
• Individual Sponsorship
An Individual UAE national also known as an Emirati will sponsor your business and own a 51 percent share in your venture. That Person must be over 21 years of age and can be male or female. In exchange for a collection of annual fees, the local sponsor/partner shall give full operating powers to the foreign partner(s) or to a third party by means of a memorandum of association.
• Corporate Sponsorship
Corporate sponsorship: In a corporate sponsorship, A UAE national Company that is your local sponsor would own 51percent of the shares and commitments. Whereas the remaining 49 percent is owned by the person or group of foreign investors. That means your sponsor will be a UAE national company rather than a person and Holds a 51% share in the company and collects a fixed charge or profit share, as agreed with the foreign investor (s). Corporate sponsorship in Dubai is typically the favoured option, as it offers additional protection for expat partners.
• Local Service Agent
This form of sponsorship is required when a specialist, such as an accountant, a business consultant or an artist creates a company in their field of expertise. The international partner can then apply for a license to provide professional services and retain 100% ownership of their company. However, they must nominate a local service agent to serve as a representative of the organization in all government sectors. The local service provider will not hold any share of the business and will instead obtain an annual fee for its services.