As an expat living in the UAE, you may find it hard to set up a business yourself. That’s because you’ll have to consider many legalities. Thus, the process of commencing a business in Dubai is not that simple. One of the prevalent difficulties confronted by expats when planning to establish a company is foreign ownership.

If your business is set up in Dubai mainland and comes under commercial or license, as an expat, you can only own 49% of the company’s share. The UAE national sponsor will own the remaining 51% of the share.

Finding a local UAE sponsor is one of the crucial aspects of setting up a business. If you end up with the wrong one, it might mess up your business and create difficulties in regulating your company. Thus, it’s better to work with business set up consultants offering local sponsor services in Dubai.

Who Can be Your Local Sponsor?

1. Individual Local Sponsor

When an individual UAE National sponsors your business and holds a 51% stake in your company, he/she is an individual local sponsor. Such sponsors must be UAE citizens. They can act as a sleeping partner, meaning they may not get involved in business activities. This type of sponsorship is ideal for commencing a commercial business in Dubai.

• Corporate Local Sponsor

The corporate sponsor is the corporate firm that will hold 51% of your company’s shares. This type of sponsor is suitable if you’re planning to open a limited liability company in Dubai. The corporate sponsors can be of any local or government authority, depending on the business nature you want to commence.

• Local Service Agent

This type of local sponsor is a service agent who is a UAE resident. He/she will be the representative of your company without holding any shares. This form of sponsorship is suitable when you want to open a professional business in Dubai.

Why Do You Need a Local Sponsor?

A local sponsor can help your business pursue local trade within the UAE industry. Limited liability companies, which have a local sponsor are 100% tax-free, and as a foreign investor, you can liquidate 100% of your income.

You can open as many divisions or branches as you like across the country. As a foreign investor, you can obtain residence visas for yourself and your dependents.

Significance of Working with Business Set Up Consultant

The UAE market is thriving and flourishing, and foreign companies are trying to maximize the current trends to the limit. It is critical to have a suitable partner because of the local laws and restrictions set up for foreign investors and companies.

Consultancy firm can help set up the business efficiently, offer advice on local law enforcement and regulations and provide connection. It can help you make your business a success. Consultants, offering local sponsor services in Dubai, can also help your find a reliable sponsor in Dubai.

The Bottom Line

Choosing the right local sponsor for your business is critical to commencing a mainland company. Explore your options, and access the risks and advantages.