A Local Sponsor may be required if you are planning to set up a company on the mainland in Dubai. There are about 2,100 different commercial activities listed by the Department of Economy and Tourism, Dubai. Following changes to the law, a Local Sponsor Dubai is no longer needed for around 1,200 of them. What that means is that there are still approximately 900 business activities that can be carried out only if the company engaging in them has a Local Sponsor.
If you would like to know whether the business activity you have in mind requires a Local Sponsor, please get in touch.
The Local Sponsor must be an Emirati (this is the term used to refer to those who are citizens of the United Arab Emirates) male or female who has attained the age of 21. He/She must not run or operate a business in the same field. He/She is to own 51% of the shareholding in your company and officially represents it before all Government agencies. For this, he/she takes a Local Sponsor Fee in return. This is a predetermined, mutually agreed upon Fee that is paid out on a monthly / quarterly / half-yearly / annual basis.
Alternatively, he/she may agree to take a percentage of the sales in return for his/her services towards your company. The Local Sponsor could also be a company that is incorporated in the United Arab Emirates and 100% owned by Emiratis.
Just because the Local Sponsor owns 51% of your company does not mean he/she takes home 51% of the profits. Things work differently in the United Arab Emirates. The Local Sponsor signs over a Power of Attorney document entrusting the affairs of the company to you. This way, you remain in full control over your business. However, the Local Sponsor remains legally responsible for all internal and external activities carried out by the company. So you need to find the right Local Sponsor for business in Dubai.
Need Help Finding a Local Sponsor in Dubai, United Arab Emirates?
We can assist in finding the right UAE Local Sponsor (sometimes referred to as Local Partner) for your business. We have years of experience with company formation in Dubai and the rest of the United Arab Emirates. Our team of professionals has been handpicked for their expertise in Business Consulting, Tax Advisory, Legal, and Corporate Finance. So far, we have been of assistance to clients from 100 countries around the world. For more details, call 055 113 4789 or email firstname.lastname@example.org
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