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Local Sponsor in UAE

Local Sponsor in UAE

Why You Need Local Sponsor in UAE?

Business setup in Dubai is a dream of many. But this aspiration comes with many questions; one of the most widely asked is regarding the need for a local sponsor in Dubai. Well, if you are a non-Gulf Cooperation Council (GCC) national, you will need a local sponsor in the UAE. It is a compulsory regulation. Undoubtedly, numerous questions pop up in business owners’ minds related to sponsorship when planning to set up business in Dubai, such as sponsor profile, benefits of having a local sponsor, taxes related to the process, pitfalls, and more. Well, let us begin understanding about sponsors, types, and benefits in the blog.

A local sponsor is a nominee shareholder (sleeping partners) or a local service agent of UAE national who owns a family national card as well. The sponsor works as a benefit for the expatriate, creating goodwill in the market with great familiarity. But exceptions are always there. Local sponsorship in UAE is not mandatory in the case of branch offices or when setting up a company in free zones.

Various Types of Local Sponsors in Dubai, UAE

Business Link UAE is here to help you have the right sponsor for your business and guide you regarding the various types of sponsors

  1. Local service agent – When setting up a business in Dubai mainland, as a foreign investor, you need to have a local sponsor who will be in charge of all ministries and government-related paperwork. A local agent has no involvement in the operations or interests of your company. The agent is paid a fixed amount for the job performed related to paperwork. Generally, need in case of a business set up by a doctor, engineer, or accountant.
  2. Corporate and individual sponsorship – According to the UAE Commercial Companies Law, to start an LLC (limited liability company) in mainland Dubai, you need to have a national partner or corporate sponsor with 51% of the company’s shareholding. The remaining 49% is with you (or whoever is the business owner). But 100% of financial benefit is with the business owner. Corporate sponsors don’t interfere in day-to-day activities and leave the management roles related to staff, clients, etc. on you.

How Business Helps You To Find a Local Sponsor in UAE?

It becomes a struggle for many to find a trusted sponsor. Here’s the good news, we at Business Link UAE are licensed and certified to act as a corporate sponsor in Dubai UAE. So, in case you are planning to have a business here, your major work is already done with us.

While selecting the sponsorship, you need to be clear on the business type you plan to set up. For LLC, trading, and manufacturing companies set up in Dubai, you need to have corporate sponsorship. Local sponsors are tax-free, and you have a 100% profit share. It is necessary to understand that a sponsor is your guide for the smooth running of the business in UAE but not the one who helps in your business operation. We help you as a corporate sponsor or get you a trusted and reliable local service agent. Business Link UAE is a reputed consultant that offers a range of services from licensing, visa to company setup in Dubai.