With our corporate nominee sponsorship program, you have 100% beneficial ownership and 100% operational and financial control over the company.
In setting up a business in the UAE mainland, one crucial aspect to consider is the requirement for a local sponsor. A local sponsor, also known as a local partner or service agent, is a UAE national or a company wholly owned by UAE nationals who acts as a liaison between the foreign business owner and the government. While the local sponsor does not typically have any involvement in the day-to-day operations of the business, they are required by law to hold a minimum ownership stake in the company. This arrangement ensures compliance with UAE regulations and allows foreign businesses to operate within the country's legal framework. Choosing a reputable and trustworthy local sponsor is paramount, as they play a vital role in facilitating the establishment and ongoing operation of the business in the UAE mainland.
In the UAE, there are several types of local sponsors or local service agents that foreign businesses can engage with to establish operations in the mainland:
1. Individual Local Sponsor: An individual UAE national who acts as the local sponsor for the business. They hold a minimum ownership stake in the company and provide support in navigating local regulations and procedures.
2. Corporate Local Sponsor: A UAE-based company wholly owned by UAE nationals that serves as the local sponsor. This type of sponsor is often preferred by larger businesses or those with complex ownership structures.
3. Local Service Agent: Sometimes used interchangeably with local sponsors, a local service agent is an individual or company appointed to represent the foreign business in dealings with government authorities. Unlike local sponsors, local service agents do not typically hold any ownership stake in the company.
4. Nominee Partner: A nominee partner is a UAE national who holds shares in the company on behalf of the foreign investor. While the nominee partner’s name appears on official documents, they have no involvement in the management or decision-making of the business.
Choosing the right type of local sponsor depends on various factors such as the nature of the business, the level of involvement required, and the preferences of the foreign investor. It’s essential to carefully consider these factors and engage with a reputable and reliable local sponsor to ensure a smooth and successful business setup process in the UAE mainland.
1. Legal Representation: Serve as the official representative of the foreign business owner in dealings with government authorities and regulatory bodies.
2. Compliance: Ensure that the business operations adhere to all UAE laws and regulations, including licensing, permits, and other legal requirements.
3. Participation: Participate in the establishment of the business by being listed as a local partner, as required by UAE regulations, often without any involvement in the day-to-day management or decision-making processes.
4. Support: Provide assistance and guidance to the foreign business owner in navigating local business practices, customs, and cultural nuances.
5. Contractual Obligations: Fulfill any contractual obligations outlined in the sponsorship agreement, which may include administrative tasks, sponsorship fees, or other agreed-upon terms.
No, in Dubai Mainland it is mandatory to have UAE national either as a local agent of the company. If the customer chooses the LLC structure, then UAE nationals will hold a minimum of 51% of the share capital of the company. If it is a professional license and sole establishment structure, then UAE nationals will be just an agent of the company. The investor also keeps in mind that UAE national will just take a fixed sponsorship amount annually against putting his name in the company even if it is mentioned in the MOA that he or she is the 51% owner of the company as all the memorandum of understating, trust deed, proxy agreement and nominee shareholding agreement will be given the foreign national to protect his or her right in the company.
Any UAE national /citizen who acts as a service agent or 51% shareholder of your business to enable a Business Setup Consultants in Dubai company set up in Dubai or UAE is called a local sponsor.
The annual charges that a UAE national expects to be paid are based on the nature of the business that the foreign expat who wants to set up a Dubai company intends to engage in. However, the average rate to be paid for a UAE local sponsor starts from AED 8000/- per year. Avyanco can help you if you wish to appoint a reliable and professional UAE national for Compony Formation in Dubai company registration in Dubai
Yes, we offer an MOU/Side Agreement or Trust Agreement that helps the foreign investors to protect his/her shares and profit of the company.
Avyanco Business Consultancy LLC can act as your UAE local sponsor for LLC company or UAE local agents for professional licenses, be it sole establishment, partnership firm, or foreign company branch licenses in UAE.
Yes, if the local sponsor has not signed the memorandum of association/service agent agreement and notarized it at the public notary, the entire paid amount can be refunded.
If you have concerns about a relatively unknown individual getting their foot in your business, there is another possible option – corporate sponsorship. The process is quite similar, except that you will be sponsored by an existing company instead of an individual. This will put you on firmer ground since a company sponsor is likely to pose less risk than an individual. It also allows for a stronger governance structure to safeguard foreign investment and enables issues like shareholder succession to be resolved under company law. Typically, you will also be provided with a dedicated team to assist with license and visa renewals and any other ad-hoc support required to operate the company.
No, you don’t need a local sponsor to free zone business setup in Dubai set up a free zone company. A free zone company can be owned 100% by an expatriate shareholder(s).
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