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Business Support

Local Sponsors in Dubai

KWS-ME streamlines Dubai business setup, from optimal structures to efficient incorporation, ensuring a seamless path to success.

Business Support

Local Sponsors in Dubai, UAE

Foreign investors must understand the importance of the role and functions of local Dubai sponsor. One of the main challenges to start and operate a business in Dubai mainland is to find a local sponsor or service agent who is going to vouch for your trustworthiness in good faith before the competent authorities to let you in the country for the purpose of business, employment, or visit.

The arrangement of a local sponsorship is not a compulsory condition for a foreign investor who wishes to start up a business venture or make an investment in Dubai mainland. The mainland Dubai strictly adheres to the UAE government sanctioned shareholding structure which is now 100% for foreign investor. A foreign person does not require a local sponsor to start a business in Dubai. Mostly, local sponsors play the role of a silent or dormant business partners and they do not take part in the administration or management of the business operations and are happy to receive a yearly income from the foreign investor according to the rules of profit-sharing laid down and formally agreed upon in the contract. However, foreign investors sometimes do make some agreements with local sponsors other than the one already inked in black and white but such agreements are not considered as admissible evidence should there arise a need to move to a court for the settlement of some dispute between the local sponsor and foreign investor. The profit and loss sharing ratio can be settled in the contract which does not have to correspond to the ratio of which capital is invested by the local sponsor and foreign investor.

The 51% sharing requirement doesn’t apply to companies or businesses set up in the free zones. 100% ownership is given to the investor.

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Business Support

Types of Local Sponsors in Dubai, UAE

The sponsor that a foreign investor or a person of foreign origin should find could be a person or a company based in UAE. There are three types of sponsorships in UAE, namely:

Agencies & Partnerships

Approval Specialists

Business Support

Types of Sponsors in Dubai

Corporate sponsorship

When a UAE based company owned by local nationals holds 51% of the shares and liabilities of a company owned by a person or persons of foreign origin, it is called corporate sponsorship.

Individual sponsorship

When a UAE based company owned by local nationals holds 51% of the shares and liabilities of a company owned by a person or persons of foreign origin, it is called corporate sponsorship.

Formation of Companies

Local Service agent

When a professional license holding professional such as a doctor, engineer, or artisan wants to start a business in Dubai by offering his professional services, then in such a case he would need a local service agent who is going to act as the representative of the business in all dealings with the government departments. He will charge a certain already agreed-upon fee for rendering his services to the business.

Necessity of sponsor in United Arab Emirates

It is mandatory by UAE law to have a local sponsor or service agent for your business. The importance of having a local sponsor can be gauged from this single biggest fact alone.

A professional license holder will have to have a local service agent who is going to represent the business in all dealings with the government departments.

KWSME specializes in finding trustworthy local sponsors in Dubai and across UAE. If you are looking for local sponsors in Dubai then do not hesitate to call us at +971-509664705 (WhatsApp) or email us at info@kwsme.com

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