Do you really need a sponsor to start a business in Dubai?

A lot of people wanted to initiate a UAE business setup process. After all, UAE is filled with so many business opportunities and a lot of benefits are available for those who wish to start a company here.

However, there’s one common question being asked by people who wanted to start a business in the UAE. They wonder, “Do I need a sponsor?”

Let us take a deeper look at this question:

WHAT ARE LOCAL SPONSORS?

Local sponsors are also known by other names such as local service agents, sleeping partners, and nominee shareholders. A local sponsor is called local because they are UAE nationals. To get a person become your sponsor and set up company in Dubai mainland, you usually pay them an annual fee based upon your agreed contract.

There are three types of local sponsorship in the UAE. These are the following:

Individual sponsorship
Corporate sponsorship
Local service agent

Some local sponsors don’t simply act as a passive partner. For example, most of them represent business owners to the specific government department and authorities. They help in setting up businesses and ensures that foreign business owners get the necessary guidance on local laws, regulations, and even cultural norms.

WHEN YOU WILL NEED A SPONSOR?

Having a local sponsor is a mandatory requirement for any foreigners who wished to establish a business in the UAE mainland. The sponsor should be a UAE national and should own at least 51% of your company.

Do you want to set up a company in Dubai?

Check out some informative articles that may help you.

At the Austria Business Center we pride ourselves in our ability to be your ultimate business partner. Contact or visit us today!

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