Emirati Nominal Sponsorship
Local Sponsorship in Dubai – Why, What & How?
Read More500+
companies registered under
Bizzmosis Corporate Sponsorship
Corporate Sponsorship
- Zero involvement from
the sponsor - Continuous support in all
government procedures - Available comprehensive
agreements
100% ownership
Expat investors have 100%
ownership of the company
in case of (professional or
representative office set up)
A non-Emirati/an Expat entrepreneur deciding to establish a business in Dubai can either set up in the Free Zone and own 100% of the business or set up in the Mainland and share over 51% of the business to a local sponsor.
Owning a business in the Free Zones brings many benefits – such as 100% ownership, 100% repatriation of capital and profits or 0% corporate or personal income tax – but there is a slight difference to owning that same business in the Mainland.
A company established within a Free Zone can operate only within the Free Zone areas & internationally. To be able to operate within the Mainland and have direct access to the entire local UAE market and internationally – a local sponsor (individual/corporate) or local agent is required to be appointed.
Individual Sponsorship
An individual Emirati national will sponsor your business and will hold a 51% stake of your company. In exchange for a set of annual fees, the local sponsor/partner will grant complete operational powers to the foreign partner(s) or a third party on the memorandum of association.
Corporate Sponsorship
Similar to individual sponsorship, the difference is that the sponsor is a company owned by a UAE national. Same as for individual sponsorship, the corporate local sponsor will hold a 51% stake of the company and receive a set fee or profit share as mutually agreed with the foreign partner(s).
*Both Individual and Corporate Sponsorships are applicable for LLC’s (Limited Liability Companies)
Local Service Agent
This type of sponsorship is required when a professional – such as a business consultant, artist or accountant establishes a company in their area of knowledge. Therefor the foreign partner can apply for a professional services license and maintain 100% ownership of their business. They must, however, appoint a local service agent who will perform as the company representative in all the government sectors. The local service agent will not hold any share of the company and will instead receive an annual fee for its services.
*A Local Service Agent is required for a Sole establishment, Civil company and Branch of foreign company (professional services only and not trading activities).
