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Setting up a business of your own can be a tedious task. One requires a lot of knowledge both internationally and domestically. There are a lot of legal entities and aspects that should be considered and taken care of. When it comes to setting up a company in foreign soil, the process gets all complicated. Dubai, the city of expats is a place where a large number of foreign investors and entrepreneurs are already doing their business.
Foreign ownership is one of the most common challenges that investors face to set up their businesses in Dubai. Any business that falls under industrial or commercial license in the Mainland city can be only 49 percent owned by the investors. The rest 51 percent must be owned by a local sponsor.
A local sponsor acts as a service agent for your business if you want to set up a business in Dubai Mainland.
As per the UAE companies regulatory and Civil Law, to start a Limited Liability Company in Dubai Mainland, a local sponsor also known as sleeping partner is required. The company is registered as a non-offshore company with a minimum of 51 percent of local equity is a must. Despite the local equity, the companies can agree upon an agreement and can distribute profits with concerned parties. You can also grant complete operational power to a third or foreign partner on the Memorandum of Association. Only UAE based citizen or companies owned by UAE nationals are considered as nominee partner for company formation.
Now that we are clear who is a local sponsor and what is their role in the business. Let us now look at the different types of local sponsor in Dubai;
A corporate body or firm that is established in Dubai can provide local sponsorship to a foreign company that is willing to set up a business in the mainland. The local equity share scenario is the same in this case meaning 51 percent to the firm and 49 percent to the foreign shareholders.
An individual who is a UAE residence can provide individual local sponsorship to a foreign company. It is not essential for the individual to take part in business activity. They simply can be a businessperson or a government officer.
A service agent is a UAE residence that acts as a sponsor for the company agreed upon some statistics. If you’re looking forward to opening a professional business in Dubai then this form is best suitable for you.
At setup Dubai Business, we understand that many foreign investors find it a little risk factor to pass its 51 percent share to other entity. It’s a completely daunting experience. This is our Local sponsorship service is designed in such a way that it provides complete peace of mind.
By partnering with Setup Dubai Business, you don’t have to spend your time searching for a local sponsor that best suits your business. Our main objective is to provide complete operational and financial control to your business. The agreements and documentation are drafted under the supervision of legal counsel and government entities. We’ll sure that you’re armed with all the required documentation that will help you to secure your business. Our local sponsorship benefits include;
We’ll guide you with every business and financial step along the way. If you want to get the best local sponsor in Dubai with cost-effective rates then contact us. Drop-in your details and we will call you back.
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