Sponsorship Services
Do you need Sponsorship Services in the UAE? Then you’re in the right place.
National Sponsorship Services in the UAE
By working with UAE citizens as business partners, foreign company owners in Dubai can feel at ease conducting their operations. The engagement of a local sponsor is required for mainland UAE business establishment under UAE Civil Law and Commercial Companies Law. In other words, an expat company owner requires a UAE native sponsor to operate a firm on the mainland. An Emirati national or a business entirely owned by Emiratis serves as the local sponsor. The local sponsor may act as a local service agent or an LSA. The foreign corporation must pay the local service agent’s services annually.
A patron of UAE citizenship (Emirati) holding a family membership card and a current Dubai passport is referred to as a “UAE national sponsor.” To incorporate a Mainland LLC, the national sponsor of the UAE or a local sponsor must possess 51% of all the company’s shares. This, however, does not apply to professional businesses or representative offices established in the UAE. If a professional or representative office is established, the foreign or expat investors hold 100% of the business.
Businesses in Dubai that need a UAE national sponsor
In the UAE, limited liability enterprises operating on the mainland need the assistance of a local sponsor. This indicates that a local sponsor is required for overseas investors who want to form a limited liability company in the United Arab Emirates. And this is a requirement of the law. The business initiatives that demand a local service agent’s assistance are listed below.
REAL ESTATE
TEXTILE FIRMS
JEWELLERY CONCERNS
ADVERTISING FIRMS
TRADING FIRMS
LOGISTIC AND CARGO FIRMS
ELECTRONICS AND EQUIPMENT INDUSTRIES
OIL AND NATURAL GAS INDUSTRIES
INDUSTRIES THAT REQUIRE MANUFACTURING AND INDUSTRIAL LICENSE
Types of Sponsorship in UAE
Individual local sponsor
An individual from the UAE who owns 51% of the company’s shares is the local sponsor. The foreign national receives the remaining 49%. There are no gender-based limitations on the local sponsor’s sponsorship. For the business to run smoothly, the individual local sponsorship must be given to a dependable and responsible person. The individual partner is not required to participate in the company’s business affairs. Individual local sponsorship is the best option for starting businesses or manufacturing companies in Dubai or the UAE.
Benefits of a lone local sponsor
Drawbacks
Corporate sponsorship
The UAE-based LLCs may benefit from corporate sponsorship. In this case, a corporate establishment fills the position of a single local sponsor. Corporate sponsors have the same ownership rights as individual sponsors. The corporate entity is the owner of 51% of the total shares of the company. The foreign citizen receives 49% of the share. A power of attorney and a board of directors make up the company structure. The power of attorney has the right to speak on behalf of the corporation as its authorized representative. Corporate sponsorship is not available to civil corporations or foreign firm branches. For the company receiving sponsorship in the UAE, corporate sponsorship has many advantages. The main advantages are related.
Benefits of using a corporate sponsor
Drawbacks
Local service agent
Delays may result from unpleasant and unexpected circumstances like the passing of a sponsor or ongoing health problems. A local service agent is perfect for sole proprietorships, established businesses, or branch offices. The LSA, or local service agent, is a citizen of the UAE. The LSA has no ownership stake in the company and is not involved in day-to-day operations. The foreign national is the sole proprietor of the business. Between the business and the government authorities, the LSA acts as a go-between and arranges meetings and official negotiations on the company’s behalf. Based on a contract, the LSA charges an annual fee for this service. The LSA starts the process for renewing licences.
