Local Sponsors to Do Business in Dubai

Local Sponsors to Do Business in Dubai : Doing business and operating it is a great challenge. The basic requirement of the investor is the presence of a local sponsor in Dubai. Also, this depends on several aspects, including the investor’s nationality and the types of businesses he chooses to establish.

The investor needs the local abutment only if the investor is a non-Gulf Cooperation Council (GCC) national trying to establish a business with a commercial or industrial license on the UAE mainland. And if the investor is trying to establish a business activity in a free zone or has a professional service license, then a local sponsor is not necessary.

If your business demands a local sponsor,

The primary step is to set up a mainland LLC, of which the investor holds 49% ownership, with the other 51% going to the local sponsor. Anyway, the rest of the functions, like profits, day-to-day overheads, etc., are all based on the same share.

A local sponsor or local service agent in Dubai can be an individual or corporate investor, duly meeting the UAE regulatory stipulation. Without covering the aforesaid requirement, no investor can establish a business activity in Dubai, Abu Dhabi, or the UAE.

It is mandatory that, without a local sponsor or local service agent, no foreign investor can do any business activity. As per UAE law, an individual or a corporate structure can establish an offshore company in an Economic Development Zone.

Sponsor Options for an LLC in UAE

Corporate Sponsorship: Here, the rules and regulations of corporate sponsorship are that the local sponsor hangs on to 51% and the rest, 49%, is owned by the foreign investor. The local sponsor, whether Emirati or American, will also be a company. And, the corporate sponsorship in Dubai is usually the preferred one, as it provides further protection for the outlandish partner.

Individual Sponsorship: In individual sponsorship, both the investor and the amplitude should be individuals.The local sponsor should be a UAE national or Emirati. The local sponsor holds 51% of the shares and the accountability of the company, and the same will be true for the foreign investor, who holds the remaining 49%. Also, if needed, the native sponsor has the provision of giving the Power of Attorney (POA) to the foreign investor. And this can be managed with an annual fee.

Selecting a Local Sponsor in Dubai- Choice in Corporate Sponsorship

To establish a business activity and make it operational in the UAE, support is needed from a service agent for the following legal forms:

Finding a local sponsor is an arduous task. And it can be a challenge for a foreign investor to give 51% of the establishing business shares.

At Black Swan, we do not waste time exploring to find a suitable partner for your business activity. Rather, we come up with a reputed corporate nominee to act as the local sponsor for your business activity in Dubai, Abu Dhabi, and Sharjah.

Our motto is to maintain 100% financial and operational control of your company by keeping your shareholder rights in the LLC. The agreements and documents used by us are in line with first-tier legal counsel and have been assimilated for a decade.

Local Service Agent – Individual Endowment, Civil Company, Foreign Branch

To establish and operationalize a business activity in the UAE, you’ll require support from a service agent for the following legal forms:

Based on the approval, a parent company can carry out full-fledged business activity as a foreign branch. Here, both legal forms need a service agent. The service agent provides all the requirements needed for the company in a hassle-free manner by taking care of all aspects, including accountability, concerning the company inside or outside the Emirate.

The second legal form is a sole establishment company, or solitary proprietorship company. Here, the individual is the sole owner who hangs on to 100% of the business and controls all its operations and profits. And the individual will be solely accountable for all aspects of the business.This is possible only with the help of a local service agent (LSA). Also, the owner should be a national of a country other than the UAE or GCC in support of the license.

The third legal form is a civil company. In this case, the partnership comprises 100% ownership shared between the foreign investor and the individual. Service agents, in this scenario, do not hold equity or engage in company operations; instead, they offer assistance for a per-annum fee. And for certain business activities, the authorities require certain qualifications for the agent. Furthermore, the company can grant shares to LSA if the activity is linked to civil accountability. In the said cases, the local representative would then be the local sponsor and not the LSA.

Significance of Choosing the right Local Agent or Local Sponsor in Dubai and UAE

Securing a business activity can be a daunting task, and selecting a partner is a vitally important step in the formation process. We have to remember that the partner should be fully fulfilling the precise requirements. Most regulations mandate that a partner must either be a resident individual or a domestic or qualified individual to conduct business activities smoothly and hassle-free. Also, it would be an advantage if your partner has a strong knowledge of the laws and regulations.

How to select a perfect local sponsor in UAE?

• Selection of a trustworthy local sponsor through a personnel relationship
• Seeking the assistance of an experienced business establishment
• The selection of a sound and professional approach by local sponsors is important for the formation process of the business activity.
• Selection of a translucent sponsor for the signing of an official document
• You should have the right documentation (contracts, POAs, side agreements, etc.) for better security of your business assets.
• You should select a sponsor who works closely with your business, as their services are crucial, particularly during the submission of official transactions.