LOCAL SPONSORSHIP IN DUBAI

The local service agents and sleeping partners also known as the nominee shareholders are referred to as the ‘Local Sponsor‘ in the UAE. In order to set up a business in the UAE mainland, there is the need of a local sponsor (a UAE National) according to the United Arab Emirates Law. The usual purpose of a Local sponsor is to assist the communication between authorities and government departments. The sponsor should have a family membership card and also should be an Emirati.

The different types of local sponsorship available in the UAE are as follows:-

• Individual local sponsor

The Individual local sponsor should be a UAE citizen, be it male or female. This business is sponsored by an Individual Emirati sponsor and holds a 51% stake in the company. For starting a commercial business in Dubai, this type of sponsorship is suitable.

• Corporate local sponsor

In order to start a business in the Dubai mainland, it is required to appoint a local sponsor for a corporate body that is registered in Dubai. This is a common type of sponsor and can be of any local or government authority.

• Local service agent

Here the Local service agent who is a resident agrees to act as the sponsor. A local service agent is needed for civil companies with foreign investment.

Things to be noted before hiring a local sponsor

• One of the important things to be made sure of is that the sponsor is a resident of Dubai. If he is not, then for the rest of the process and government formalities he should be consulted every time.

• If the chosen local sponsor is a government employee, this will be of great advantage to the company due to having a direct connection to the government agencies.

• Seeking the advice of a business consultant in Dubai is an important step for an investor.