The local sponsor must be a UAE National who is also referred to as an Emirati. If you are setting up your company in the Mainland, you are required to have a local sponsor. The local sponsor holds 51% of the shares whereas 49% is held by the foreign Shareholder or Partner.
There are 3 main types of local sponsorships:
- Individual sponsorship
- Corporate sponsorship
- Local service agent
The type of sponsorship depends on the type of business you are planning to start. Reddy’s Management Consultancy can provide you Local Sponsor Arrangement facility for your company formation in Dubai, UAE.
According to UAE Laws, setting up a limited liability company in the mainland needs a minimum of 51% shares from a local sponsor. The foreigner can have shares of 49%. Only UAE Companies owned wholly by UAE nationals are considered as sleeping partners and paid a lump sum amount every year.
Local Service Agent
The branch of a foreign company or a single-owner company with foreign investment needs to have a local service agent to observe and follow up with the rules and regulations.
At Reddy’s, we arrange Local Service Agents in Dubai and also Local Sponsors in Dubai, UAE.
With Reddy’s, your business setup journey will become a cakewalk for you.