Doing business in Dubai is not an easy task. To start and operate a business in Dubai you need to find a local sponsor in Dubai. By law you are not allow to get a license without a local sponsor Dubai. The law of the gulf state only allows a partial owner ship to expat. So in any business in Dubai main land area; an expat will need a local sponsor Dubai to get the license.
Share of a local sponsor Dubai
Any business which is setup in Dubai main land needs a local sponsor in Dubai. In most of the companies the UAE national will hold 51% of the share; while an expat will get the remaining 49% of the share. But at this point please note that; local sponsor Dubai only requires in main land company; free zone company are free from this restriction. In free trade zone of Dubai an expat can hold 100% share of the company.
Type of a local sponsor Dubai
As we have discuss a lot of thing about sponsor in Dubai. Now it is time to say something about the type of sponsor in detail. There are 3 main type of local sponsor Dubai.
Corporate local sponsor in Dubai
When a company is totally own by a UAE national; then that company is known as a local company. This type of a company is allowed to sponsor other company. When this type of company hold share in other company is call a corporate local sponsor in Dubai. An expat can also take the services of a corporate local to sponsor him for his or her business.
This type of a sponsor is suitable when you are going to open an llc; or going for a commercial license or industrial license. The share of a local in this type of a structure will be minimum 51%.
Individual local sponsor in Dubai
When a UAE national in his or her capacity take a part as sponsor; is called an individual sponsor. It is not necessary that he or she is also run a business in the same field. The individual can be a simple person, a gov’t employee in the Dubai; as well as he can be a businessman.
This type of a sponsor is suitable when you are going for a commercial license; or industrial license or you are going to open an LLC company. The share of a local in this type of an arrangement will be at least 51%.
Local Service Agent in Dubai
Local service agent in Dubai is requiring for professional license. LSA is require when a doctor, an IT expert, an engineer; as well as an artist wants to set up their company; and offer his or her expertise. For this type of company you will require to appoint a local service agent. The beauty of this type of a sponsor is that he will not hold any share in the company. Expat can hold 100% share of his or her company.
This type of a sponsor is suitable when you are going for a professional license; or you want to setup branch of foreign company. LSA is also requires when you want to open a representative offices. The share of an LSA in this type of an arrangement will be 0. And expat will hold all the share of the company.
Quality of a Local sponsor Dubai
Till now we have discuss a lot of thing about local sponsor, as well as about LSA. It is now time to discuss the real face of the sponsor; that is the quality of the sponsor. And let me tell you that this is an important topic; which needs to be read very carefully. Because, after reading this topic you will be able to select a right sponsor.
- First of all in the first place; check whether he is a residence of Dubai or not. Because if he is not living in Dubai; then you have to travel for signature each time you need to process something in Gov’t department. To save time select a person who is local to Dubai.
- Check his or her family background. If he or she is from a reputed family; then they will not make any issue for you.
- Check for his or her qualification. Because there will be a language problem if he is not an educated person.
- Also check status; always select a gov’t employee for local sponsor in Dubai.
- And last but not the least talk to one or two of his current sponsor companies. Ask them whether he is cooperative or not.
Who is a Local Sponsor in UAE?
According to UAE law any business which is setup in UAE; that is in main land area requires a UAE national who acts as a partner in the company. This type of a person is called a local sponsor in UAE.
Do we provide Emirati sponsor?
The answer is yes; we provide Emirati sponsor for various company setup. So any one looking for sponsor in Dubai are on the right place; they do not need to go any where just call us on the given number and book a meeting with expert to get a proper advise on a local sponsor; as well as on the other business issue.
Who need local sponsor in Dubai?
Anyone who wants to set up a business in Dubai; they need local sponsor in Dubai. Most of the time our client are asking one common question; which i want to share it her; that is for what type of a business I need local sponsor in Dubai? The answer is simple; anything which come under the commercial license as well as under industrial license need local sponsor in Dubai.
How can i find a local sponsor in UAE for my business set up?
Shams consultant is the local sponsor provider in UAE. We have a list of the right and as well as reliable local sponsor for your business in UAE. We can provide you a local for any sort of business.
How much does a sponsor charge annually?
The cost of a sponsor is totally depending on the type of a business activity. But roughly our sponsor is charging 7,000 AED for a normal activity.
Does every expat require a local sponsor in UAE for their business?
The answer is no. Because GCC national can set up his business without an Emirati sponsor.