How do I get a local sponsor in Dubai?
One of the most important questions asked by entrepreneurs and investors in the UAE is if they need a local sponsor in Dubai. Similarly, the answer depends on several important factors, such as the type of business you want to set up and your nationality.
That is to say, if you are not a citizen from the Gulf Cooperation Council (GCC) looking to start a company with an industrial or commercial license in the UAE Mainland; then the answer is yes. Therefore, you must partner up with a local sponsor. However, if your business activity is covered by a professional license or you are setting up in a free trade zone, you do not require a local sponsor.
If your company requires a UAE company local sponsor, in Connect Middle East we are to help.
Firstly, you must establish a Mainland LLC with this setup you will retain 49% ownership; however, the other 51% is going to the local sponsor. But the profits and income are not split the same and your local partner will have no say in the everyday activities of your company.
When it comes to Mainland LLC set up, 51% of the shares owned by the foreign organization go to the business partner (corporate or local sponsor). In the same vein, the foreign investor enjoys 49% of the business shares.
On the other hand, according to the new sponsorship rules in the UAE, the business creation of an LLC involving foreign investment orders the involvement of a local agent. In other words, the partner must be a corporate entity or a UAE national. Further, finding a local sponsor in Dubai is a demanding activity for new entrepreneurs and startups in the country.
How can I get a local sponsor in UAE?
The foreign organization must pay an established amount each year offered by the local sponsor in the UAE. In addition, corporate sponsor services in Dubai are like a local partner; the difference is that the first is an organization and the latter is an individual. In addition, a corporate partner is a business entity owned by UAE nationals and includes a board and directors.
On the other hand, an attorney acts on behalf of the business; and the profit and the income generated by the foreign business do not need to be shared with the sponsor. In addition, sponsorship is compulsory for a wide range of companies belonging to the commercial and trading business areas.
If you are stuck finding a local sponsor in Dubai, in Connect Middle East we connect your company with the best sponsor who will work side-by-side with our company. Likewise, we have the best legal team dealing with matters related to contract signing. Our legal team give vast importance to our partner’s right and safeguard their interests.
And apart from our local and corporate sponsorship services in the UAE; we also offer unique and prestigious sponsorship packages. In Connect Middle East we show you how to change local sponsor in Dubai handle sponsorship-related necessities efficiently; this way you can focus on your business growth.
Two decades of running sponsoring and assisting companies in the UAE allowed us to obtain the best experience in the UAE. When you partner up with us, you will not need to spend time searching for a sponsor. Instead, with our corporate sponsor services in Dubai, we will provide outstanding sponsorship services for you.
Our main objective is to give you fully operational and financial control; meanwhile, we protect your shareholders’ rights in your LLC.
What is a local sponsor in Dubai?
Foreign entrepreneurs and investors looking to start a company in Dubai Mainland must find a local sponsor for licensing purposes. Similarly, local sponsorship is crucial to set up a company in the Mainland Area. In addition, there are 3 types of sponsorship; you can start a business in Dubai Mainland through corporate sponsorship, individual sponsorship, and the use of a local service agent.
The type of sponsorship you need depends on the type of business activity you want to carry out.
For this type of sponsorship, a UAE national sponsors your company and holds 51% of your company.
Sponsors must be UAE nationals aged above 21 years.
Individual sponsors do not need to have experience running a company in a specific area. However, the sponsor must be a business owner, a professional, or a government worker.
All earnings are maintained in the name of the business and not the same as a local sponsor.
Both industrial and commercial licenses require a local sponsor in the UAE.
In exchange for the annual fee; the local sponsor is able to handle full power and responsibility of the attorney and full control of the organization and its daily activities to the foreign investor.
This process is less tricky as it is completely structured and clear from beginning to end. In addition, it also provides investors with legal protection and more security by ensuring agreements; they are reviewed by our corporate sponsor services in Dubai and first-tier legal counsel and all terms set.
This type of sponsorship is similar to the individual one.
The corporate sponsor must be a UAE national organization and not an individual one.
In addition, the corporate sponsor holds 51% of the business shares.
This type of sponsor receives a set of profit or fee shares to let the foreign investor or entrepreneur run the business with full control. Similarly, foreign investors also keep full income from the company with full control.
Dealing with an individual sponsor may create ownership issues if the partner retires early or passes away. Therefore, to alleviate this issue, you need a legally-binding plan or a “succession planning in place”. But with our UAE company local sponsor, you do not need succession planning.
This type of sponsorship provides you with the support of our full team instead of just one individual.
Similarly, one of the most important advantages is that we will never interfere with your business.
Local service agents
Local service agents are needed when professionals such as engineers, chartered accountants, and doctors set up companies in their expertise areas.
When you partner up with a local service agent; foreign entrepreneurs and investors are able to apply for the professional license and keep full ownership of their company. In addition, they also keep full power of daily business operations. On the other hand, local service agents have no administrative powers.
Local service agents act on their behalf in all administrative procedures with government entities. Thus, the local service agent plays an important role as a signatory for carrying out all government-related activities.
The local service agent does not enforce any responsibility in the business.
The foreign entity pays the local service agents an annual fee for their solutions.
How do I find a local sponsor?
Our corporate sponsor services in Dubai provide you with reliable and the most outstanding solutions in the UAE. After all, finding a trustworthy local sponsor may be a difficult area; especially if you are on your own. Likewise, finding a local sponsor in the UAE is an important factor when setting up a business.
How can I get a sponsor for my business in Dubai?
When choosing a local sponsor in the UAE, it is crucial to be careful, if you do not choose the right sponsor; you will have a difficult time managing your company.
The local sponsors in Dubai have more control over everything; they take care of all important activities happening within your country during this period. In the same vein, you need someone with expertise who has worked in this area before; this way you will complete the things you need in this difficult job.
In Connect Middle East we are here to assist you to find assistance and how to change local sponsor in Dubai. Our team of experts will work side-by-side with you to find the right sponsor for your organization providing you with the best services.
How do I get a corporate sponsor?
The best way of finding a local sponsor in Dubai is to find the services of a reputable business formation expert like us. In Connect Middle East we are a team of sponsorship professionals who are passionate about making the dreams of entrepreneurs come to life.
In addition to assisting you with corporate sponsorship, we also assist you with trade license obtaining and opening bank accounts in Dubai. Moreover, we also advise you on the most appropriate bank or financial institution that will suit your business requirements.
On the other hand, we also provide you with immigration and visa services as well as; managing all government permissions, formalities, visa applications, and work permits you require to trade in the country.
In conclusion, our team of experts will start your business on your behalf, find sponsorship if you need it, make visa applications and licenses. And take care of all administrative requirements. Therefore, this will allow you to focus on running your company.
What is corporate sponsorship Dubai?
Corporate sponsorship means that a company or organization will sponsor you to successfully complete the formation process and help you run your business. In addition, new sponsorship rules in the UAE make the corporate sponsor have a physical office where the clients can go and discuss their projects.
On the other hand, this type of organization in the UAE is fully owned by a UAE national or GCC nationality. However, the ex-pat worker can contact or access the corporate sponsor for their establishment or labor with visa purposes. Let’s observe the benefits:
- Legal and secure.
- Fast-pass document completion
- No need for succession planning
- Transparent paper works.
- Better legal protection and regulations
- Zero interference with full financial benefits.
- Freedom and side agreements.
- Withdrawal rights.