Are you looking for local sponsors in Dubai? UAE local sponsors can streamline your dealings with the public departments. Find corporate/individual sponsors or local service agents with the help of KWS ME.
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.
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 sponsorship in Dubai, UAE.
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 known as corporate sponsor.
When a local Emirati national keeps 51% of the shares and liabilities of a company owned by person(s) of foreign origin, he/she is known as individual sponsor.
When professional license holding professionals such as doctors, engineers, or artisans want to start a business in Dubai by offering their specialized services. In such a case, they need local service agents who are going to act as the representatives of the business in all dealings with the government departments. A local service agent charges a certain already agreed-upon fee for rendering the services to the business.
Once, it was mandatory by the UAE law to have a local sponsor or service agent for the foreign businesses. Now, it is not a requirement to contract a local sponsor for an expatriate run business. The importance of having a local sponsor can be gauged from this single biggest fact alone. However, 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.
KWS ME specializes in finding trustworthy local sponsors in Dubai and across the 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
