OFFSHORE COMPANY FORMATION

Local Sponsorship

For setting up a company in the UAE, you need a local service agent or a local sponsor. This can be an individual or a corporate structure for company setups within the Economic Development Zones according to the UAE law. For setting up a mainland LLC company, it is mandatory to appoint a local sponsor. The UAE national sponsor or local sponsor owns 51% of the total shares of the company. The foreign company is required to pay an annual fee for the services offered by the local service agent. Local sponsor should be a UAE citizen (Emirati) with a family membership card and a valid Dubai passport. However, professional companies and representative office setup in the UAE do not require a local sponsor or service agent.

Sponsorship Options for Companies in the UAE

A corporate sponsorship is one of the most preferred sponsorships in the UAE as it provides added security for the expat partners. In this a company will become your local sponsor and hold 51% of the shares. The individual or group of foreign investors owe the other 49%.

In an Individual sponsorship, the sponsor will be an individual. He is a UAE national who holds 51% of the shares and liabilities of the company and the remaining 49% will be held by the foreign partner. As the local sponsor is the principal shareholder, he or she can give a Power of Attorney (POA) to the foreign investors. This POA allows them to manage his or her shares and rights in the company for an annual fee.

A Local Service Agent will be an individual who will act like a company’s representative but will not hold any shares in the company. Local service agents are ideal for professional businesses in the UAE.
Importance of Selecting a Trusted Local Sponsor/ Agent in the UAE

A local sponsor/agent is the one who deals with the government officials and ministries on behalf of your business. It is necessary to have experienced and trustworthy sponsors/agents who are well-aware of the local laws and restrictions in place for foreign-owned companies and investors in the UAE. They can add value to your investment and protect your business rights in the UAE.

Lloyds Consultants Dubai is specialized in finding the right sponsors who can be a valuable asset for your business. Get in touch with our team to choose a reliable sponsor for your business.