Business Sponsor Services Dubai
In Dubai, and across the United Arab Emirates (UAE), the process of setting up a business typically requires the involvement of a local sponsor, also known as a local Emirati sponsor or UAE national sponsor. This sponsor is a UAE citizen who holds at least 51% ownership in the company, while the foreign investor(s) own the remaining percentage.
A local sponsor's role is primarily legal, and they do not actively participate in the day-to-day operations of the business. Their involvement is mainly limited to fulfilling legal requirements and acting as a local liaison with government authorities. They provide their services in exchange for an annual sponsorship fee, which is usually negotiated between the parties involved.
Advantages of a
Business Sponsor Services
Foreign investors or business owners looking to establish a mainland company in Dubai or any other emirate in the UAE will need to find a local sponsor. They can either search for a suitable sponsor themselves or seek assistance from business setup service providers who can help connect them with potential sponsors.
Once a suitable local sponsor is identified, the terms of the sponsorship agreement are negotiated and agreed upon. The agreement outlines the responsibilities, sponsorship fee, profit-sharing (if applicable), and other terms and conditions related to the sponsorship arrangement.
To formalize the sponsorship arrangement, a Memorandum of Understanding (MOU) or a Local Service Agreement is signed between the foreign investor(s) and the local sponsor. This document clarifies the roles and responsibilities of each party and serves as a legal reference in case of any disputes.
With the sponsorship agreement in place, the foreign investor(s) can proceed with the business setup process. They will need to apply for a trade license and fulfill other legal requirements, such as obtaining approvals from relevant government authorities.
Throughout the process of obtaining the trade license and other necessary approvals, the local sponsor may provide support by liaising with government departments on behalf of the business.