Setting up a Business in Dubai: How to Find a Suitable Local Sponsor? As an expat living in the UAE, you may find it hard to set up a business yourself. That’s because you’ll have to consider many legalities. Thus, the process of commencing a business in Dubai is not that simple. One of the prevalent difficulties confronted by expats when planning to establish a company is foreign ownership. If your business is set up in Dubai mainland and comes under commercial or license, as an expat, you can only own 49% of the company’s share.The UAE national sponsor will own the remaining 51% of the share. Finding a local UAE sponsor is one of the crucial aspects of setting up a business. If you end up with the wrong one, it might mess up your business and create difficulties in regulating your company. Thus, it's better to work with business set up consultants offering local sponsor services in Dubai.
Who Can be Your Local Sponsor? 1. Individual Local Sponsor When an individual UAE National sponsors your business and holds a 51% stake in your company, he/she is an individual local sponsor.Such sponsors must be UAE citizens. They can act as a sleeping partner, meaning they may not get involved in business activities.This type of sponsorship is ideal for commencing a commercial business in Dubai. 2. Corporate Local Sponsor The corporate sponsor is the corporate firm that will hold 51% of your company's shares. This type of sponsor is suitable if you’re planning to open a limited liability company in Dubai. The corporate sponsors can be of any local or government authority, depending on the business nature you want to commence. 3. Local Service Agent This type of local sponsor is a service agent who is a UAE resident. He/she will be the representative of your company without holding any shares. This form of sponsorship is suitable when you want to open a professional business in Dubai.
Why Do You Need a Local Sponsor?