Squint for a local sponsor in Dubai?

Doing business and operating it is a great challenge. The basic covet by the investor is the requirement of a local sponsor in Dubai. Also, this depends on several aspects including the investor nationality and the types of business choose to establish.

The investor needed of 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 is having a professional service license, then a local sponsor is not necessary.

If your business demands for a local sponsor,

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

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

It is obligatory that without holding a local sponsor or local service agent no foreign investor can do any business activity. As per the UAE law, an individual or a corporate structure can establish an ashore company at 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% the rest 49% by the foreign investor. The local sponsor or Emirati will also be a company. And, the corporate sponsorship in Dubai is usually the preferred one, as it provides further protection for the outland partner.

Individual Sponsorship: In individual sponsorship, both the investor should be an individual in his or her amplitude. The local sponsor should be a UAE national or Emirati. The local sponsor hangs 51% of the shares and the accountability of the company and the same will be the foreign investor who hangs the rest 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 operational in 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 dispense 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 the first-tier legal counsel and assimilated for a decade.

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

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

Based on the approval, a parent company can carry out the 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 the 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 the sole in charge of all the business accountability. 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 UAE or GCC in support of the license.

The third legal form is a civil company. In this type, the partnership is 100% where the equity will be the same with the foreign investor and individual. Here, the service agents do not hold the equity and are not involved in company operations and the service agent assistance comes at per annum fee. And for certain business activities, the authorities require certain qualifications for the agent. Also, LSA can own shares in the company, if civil accountability is linked to the activity. 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 full filling the precise requirements, most require that a partner should be either a resident individual or a domestic or qualified so that the business activity can be carried over in a hassle-free manner. 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
• Selection of sound and professional approach local sponsors for the better formation process of the business activity
• Selection of a translucent sponsor for the signing of an official document
• Should have the right documentation, contracts, POAs, side agreements, etc. for better security to your business assets
• The selection of a sponsor should be in such a form that the sponsor should work with us hand in hand because the service of the sponsor is needed at any time especially during the submission of official transactions.

• 100% foreign ownership
• Tax benefits
• Duty free
• Low operational cost
• Low freight charge
• Abundant & inexpensive energy
• Exemption from all import and export duties
• Freedom to recruit expatriates
• Freehold offices available on sale or lease
• Readymade offices, factories & warehouses
• Free transfer of funds
• No foreign exchange control

• Taking the trade name approval
• Initial or security approval.
• Preparing Memorandums.
• Bank Account assistance.
• License issuance.
• All Visa's
• Any external approvals if required.
• Final Submission.
• Court Notarization of memorandums
• POA and other documents.
• Space Rental
• VAT Registration