Everything you Need to Know About Local Sponsor in Dubai

1
Everything you Need to Know About Local Sponsor
in Dubai
Presentation By Start Any Business
2
Introduction
As we know, Dubai is one of the best business hub
and commercial capital in the Middle East. Most
of the entrepreneur wants to set up their
business in Dubai and other emirates of UAE
because of its lavish infrastructure, low tax
exemptions, rich technologically forward
resources, and several company formation choices.
However, As per to the United Arab Emirates law
in relation to mainland business setup, the
oversea traders are needed to have a local
resident, a UAE national as a sponsor. So here we
mention everything you need to know about local
sponsor in dubai. Start a business on your own
can be quite monotonous. There are several legal
aspects that require to taken care of. When it
comes to setting up a business in an oversea
country, the procedure gets all the more
complicated. One of the most challenging things
traders face while setting up a business in Dubai
Mainland is the issue of oversea ownership. This
is due to an industrial or commercial business
requirement to have a local sponsor. Dubai is
home to a massive number of ex-pats, is also a
land that is largely opted by overseas traders to
set up their businesses. The foreign traders who
want to set up their business in Dubai must have
knowledge and clarity about they require a local
sponsor for business in Dubai and what will be
the repercussion. Oversea ownership is one of the
most common challenges that expats face when they
decide to set up a business in Dubai. The
business that falls under commercial or
industrial license in the mainland of the city
can only be 49 owned by an expat and the rest 51
of the stake must be owned by a local sponsor
and partner.
3
Different Types Of Local Sponsor In Dubai
1. Corporate Local Sponsor
A corporate company that is registered and set up
in Dubai can provide local sponsorship to a
foreign company that wishes to set up a business
in Dubai. The corporate sponsors can be any
government and local officials, depending on the
requirement of the business, which foreign
traders wish to set up business in Dubai.
2. Individual Local Sponsor
The individual sponsor are a local resident of
the UAE and can take part as a local sponsor. It
is not vital for the local sponsor to be
comprised of the business activity or being a
business owner. This type of sponsorship is
relevant for opening a commercial business in
Dubai.
3. Local Service Agent As Sponsor
The local service agents are another type of
local sponsor in Dubai who are the local
residents and agree to act as a sponsor for the
business or company in Dubai. If you are willing
to open a professional business in Dubai, then
this form of local sponsorship is relevant.
4
Things You Need To Know Before Finding Local
Sponsor
Before hiring the sponsor and partner for your
business, it is vital to know these things to
cross-check the local sponsor. Here are some
points to remember

• Check if the local sponsor is a resident of
  Dubai. If the local partner is not a resident of
  Dubai, then the traders have to travel each time
  for signatures or process the government
  formalities.
• Have a complete check of the sponsor family
  background. A sponsor from a well-reputed family
  in Dubai will be a benefit for the business as
  the UAE national most likely to have goodwill in
  the area.
• An oversea trader may have a sponsorship deed
  agreement verified before signing it.
• Going for a government employee as a local
  sponsor in Dubai will yield a better advantage
  for the company because of the direct connection
  to government agencies.
• Be clear and precise on the fees or compensation
  to pay to the local sponsor as wells scope of
  sponsors services.
• Traders may also look for advice from a business
  consultant in Dubai about a local sponsor. A
  consultant can offer information on the terms and
  conditions of having a local sponsor.

5
Work Done By Local Sponsor In Dubai

• Cancellation of employees work visa
• Closing bank accounts
• Cancellation of the labour status for employees
• To settle any outstanding debt
• The Local Service Agent can deal with the
  government officials and Ministries on behalf of
  the businesses and also facilitates the renewal
  procedure.
• Interpreting the business contracts for business
  registration that are in Arabic, the local
  authority is needed to understand and interpret
  these documents and can sign on behalf of their
  oversea business partner.

Thank You
6
Contact us
ADDRESS
Office 1200, Al Musalla Tower, Al Fahidi Metro
Station, Bur Dubai, Dubai, United Arab Emirates
PHONE NO.
971 43233854
EMAIL
info_at_startanybusiness.ae
VISIT US
www.startanybusiness.ae