HomeLocal sponsor in UAEDo you require a UAE National Sponsor to start a business in UAE?
local sponsor in the UAE to start a business

Do you require a UAE National Sponsor to start a business in UAE?

Dubai is a home for global business with the best platform connecting the entrepreneur from all over the world. Dubai provides strategic location, investment-friendly market and most amazing infrastructure. The Dubai government is encouraging the foreign direct investment (FDI) and has set-up business-friendly policies.

Dubai provides ease of doing business for expat entrepreneur by collaborating them with UAE nationals as a business partner. To have a UAE national sponsor is mandatory for the mainland business only but not for Dubai Free zone business.

Now, you probably thinking about who is local sponsor?

A sponsor must be a UAE national (Emirati) with a family membership card and a valid Dubai passport. A local sponsor in the UAE is a sleeping partner in your business, who are authorized to own at least 51% of the shares of your company. The balance 49% will be owned by you and your partner/s.

Types of local sponsors

There are three types of local sponsors available for company formation in Dubai. Let’s check it out!!

  • Individual local sponsor

An individual who is a local resident can be a local sponsor in Dubai. It is not mandatory for the local sponsor to be involved in business activity. They can be a government officer or any business person or any simple person as well. You can approach individual local sponsor when you are starting a commercial or industrial business in Dubai.

  • Corporate local sponsor

A corporate firm which is 100% owned by UAE nationals and registered in Dubai can provide local sponsorship to a foreign company who wants to start a business in Dubai. In this sponsorship, 51% of the equity shares will be held by a corporate sponsor and balance 49% will be with the foreign investors. This sponsorship is suitable for opening an LLC company in Dubai.

  • Local service agent as a sponsor

UAE government allows 100% ownership to expats for professional activity but it is mandatory to have a local service agent to start a company under professional license. Hence without allotting any equity shares to UAE national, he will act as a local service agent for your company.

The local sponsor, corporate sponsor and local service agent might be a complete stranger with a totally different background. Contact a business consultant and they will help you to choose a reliable local sponsor as your business partner.

At Profound, we can arrange a local sponsor who is friendly and easily accessible. So you will get hassle-free company formation services with us.

Do you have any query?

Drop us an inquiry at [email protected] or call us on +971 43206111.