Setting up a business in UAE Mainland obligates you to several rules and regulations that include finding a local sponsor for your business. Now, this would be tough while you are a foreign investor and unaware of most things. Future Vision turns out to be a perfect partner while you look for a suitable local sponsor in Dubai who could support your business idea and prove to be an asset for you.
The UAE Companies Law mandates the involvement of a local sponsor for Mainland Limited Liability companies that involve foreign investment. The local sponsor or shareholder should be a UAE national or corporate entity. If you are planning to start a business regarding general trading, contracting, advertising, real estate, technical services, manufacturing, textiles, cargo and logistics, cosmetics, electronics, etc.
The sponsor is a UAE national (citizen of the United Arab Emirates), also known as Emirati. He should own 51% shares in your LLC company. However, they do not interfere in the business operations. As local sponsor fees in Dubai, you would have to pay a specific amount of money to the local shareholder every year. The same applies to a corporate agency that acts as your local sponsor. As mentioned above, local sponsorship is mandatory for various commercial and business categories in the UAE Mainland business areas.
Based on your business types, you would have to choose a local sponsor. According to the role they play for your business,
there are the following types of local sponsors.
If you are planning to set up a manufacturing company, trading, or LLC company, you may look for a local corporate sponsor. Here, a corporate firm will own 51% shares in your company, and the remaining 49% could be foreign shareholders. They would charge a specific amount annually as their fee and don’t have to invest in your business.
An individual local sponsor could be a local resident, businessperson, or government officer in UAE/Dubai. Those who wish to start a commercial business or industry in Dubai would find this sponsorship suitable. The local sponsor, as said, will own 51% of the total equity shares.
A service agent who is also a local resident could be your local sponsor in Dubai for business. This type of sponsorship suits the best for professionals like doctors, engineers, or artisans. For professionals in Dubai, a local agent would be important during government dealings, if any.
There’s a reason why foreign companies require local sponsors for incorporation in Dubai Mainland. Generally, these sponsors take responsibility for the foreign investors and represent them in matters of the government.
While Dubai is a multi-cultural land, most of the business contracts and deals are made in English. However, there are few Arabic documents that need to be signed during business registration. Only a local authority would be able to understand and carefully interpret these documents before signing them on behalf of a foreign business partner.
Although it’s not necessary for the dubai local sponsor to invest in your business, they still hold 51% shares and liability of the company, being responsible for your deals in Dubai, UAE. Since a local partner would be 51% partner of the company, there’s equivalent risk involved. In case a company defaults, the local sponsor would be responsible for the following:
Cheques issued by the company.
The employees of the company and cancellation of their work visas.
To close the company and its prevailing bank accounts.
When local sponsors provide you with sponsorship, there are some risks involved for them.
At Future Vision, we understand that passing off a 51% share of your business to a local sponsor may be something that worries you. You can always look up to our corporate sponsorship service, which would help you conduct care-free business and manage everything for nominal local sponsor fees in Dubai. It will save you a lot of time and effort involved in building a rapport with any other local sponsor.
We would offer you a corporate nominee as your 51% local sponsor in Dubai. We ensure that you get 100% operational and financial control while retaining your shareholder rights in the company. We never fail to keep your record up-to-date with necessary documents and secure your financial rights over the business.
With our well-defined services, we make sure that you get to carry on business activities smoothly, with no loss. Here are some reasons to seek services from us:
A corporate sponsorship with us will let you keep complete control over your business despite holding a smaller portion of shares. According to the rules, we won’t interrupt the day-to-day operations of your business. Thus you can manage your staff, clients, and services as you want.
Just like any other local sponsor, a local corporate sponsor would be a 51% shareholder in your company. However, the right over financial gains from the business would remain completely with you and not the sponsor.
We make sure to keep everything ready for you as a part of side arrangements and prepare detailed documents whenever required. We won’t give you a chance to complain about side arrangements. In all situations, your rights towards the business will be protected.
Finding A Local Sponsor In Dubai? Reach Out To Us For The Best Services
100% tax exemption on personal or corporate income or gains
100% ownership for investors regardless of their nationality and domicile
100% repatriation of capital and profits
No capital required
Exclusion from all import and export duties
Exemption from corporate tax for 15 years, with an additional renewal option for 15 years