Arranging Local Sponsor

Previously, Local Sponsor in UAE is a pre-requisite for setting up a Limited Liability Company in the mainland. As per the previous UAE Commercial Companies’ Law and UAE Civil Law, Local Sponsors are either UAE National or a corporate entity that is wholly owned by a UAE National(s).

For registering an LLC Company in UAE, there is no mandatory requirement to appoint a UAE National Sponsor as the primary shareholder. Foreign investor can own 100% of the company shares.

Our serviced offices offer flexible contract terms to meet your business needs.

Appointing a Local Sponsor for your LLC Company

Access Business Services will help you in finding the right Local Sponsor for your LLC Company by thoroughly assessing your business requirements. To select the right Local Sponsor in UAE, you must consider few things:

The appointed Local Sponsor has no role in the daily operations of the company. The role of the Local Sponsor in UAE is liaising with the necessary government departments for obtaining employee visas, license approvals, and other administrative services.

Access Business Services will help you in finding the right Local Sponsor for your LLC Company by thoroughly assessing your business requirements. To select the right Local Sponsor in UAE, you must consider following things:

Build a Rapport with your Sponsor – For the setting up of business and during the course of business, there will be a requirement of the Local Sponsor to liaise for Government Services like applying for new employee visas, approvals, immigration, etc. Hence, building a rapport with the Sponsor is essential

Clear and Transparent Communication– There must be a clear communication between you and the local sponsor to avoid any miscommunication on the share responsibilities and confusion on the clauses on the shareholder agreement.

List out the Terms and Conditions Precisely – Ensure that the Memorandum of Association provided by the Local Sponsor have all the Terms and Conditions listed out clearly and are agreeable for you.

Ensure Right Documentation – Before signing up with the Local Sponsor ensure you have the right documentation of Power of Attorney(POA), side agreements, etc., to protect your shareholding and business assets in case of any disputes

There are few company structures in UAE requires appointing the local Service Agent instead of a local Sponsor unlike an LLC Company setup

The professionally license companies, sole establishments, Civil Work Companies, Branch of a Free Zone, Foreign Branch, Representative Office of Free Zone/Foreign Branch, etc., must appoint a Local Service Agent while registering the company with the authorities in UAE

The Local Service Agent does not own any percentage share in the company but acts as local representative for the company to liaise with the Government for Visa and Administrative services. Local Services Agent Agreement must be signed to appoint the agent for the newly formed company for a yearly agent fee.

Corporate Sponsorship in Dubai

Corporate Sponsor is where a corporate entity that is fully owned by UAE Nationals will act as the Sponsor for your newly formed LLC Company

Instead of forming an agreement with an individual as a Local Sponsor in Dubai, Corporate Sponsorship is an alternate option. AURION will prepare the agreement to represent the corporate as the local Sponsor in UAE for the new LLC Company registered.

Advantages of Corporate Sponsorship

Sponsor Availability All Time : Corporate Sponsors would be always available for carrying out the Government procedures (Labour Contract, Approvals, visa, Immigration, emirates ID, etc.) for the sponsored company.

The individual UAE National Sponsor availability is subjected to their presence in the UAE. Whereas Corporate Sponsor would be always remaining in UAE as it is an entity registered in UAE.

No Involvement in the Daily Business Operations of the Sponsored Company

The full control of the LLC Company remains with the foreign owner even if the local sponsor is holding the major shares. The side agreement states the scope of responsibilities of each parties in detail

Comprehensive Agreements by Corporate Company Lawyers

The Sponsor Agreement as well as the Memorandum of Association in the case of the Corporate Sponsor would be mostly prepared by the company itself. Corporate Sponsors have a PRO Team for assistance and ensures full transparency and legal protection for both the shareholders

After setting up your company with a local sponsor or local service agent, you will need to comply with the ongoing legal and regulatory requirements, including obtaining permits and licenses, submitting annual reports, and maintaining accurate financial records. Failure to comply with the regulations can result in penalties, fines, or even cancellation of your business license.

In conclusion, arranging local sponsor services in Dubai can be a complex process that requires careful planning and preparation. It is important to work with a reliable and experienced company formation service provider to ensure that all the legal requirements are met and the process runs smoothly. With the right support, you can establish a successful business in Dubai and tap into the opportunities offered by the growing economy.