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.
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.
We are business setup consultants in UAE. We provide services of business setup in uae, mainland company formation, free zone company formation, offshore company formation and provide sponsorship to new businesses. Contact on 00971 52 1263 962