The UAE has been attracting millions of foreign investors for over decades with their luring economic structure, abundant opportunities and relatively high standard of living. UAE is considered as one of the most liberal countries when compared to the other Gulf regions, thus the foreign investors consider this region as a base to enter international market.
However, many the foreign investors who are interested in doing a business in the UAE are not introduced to the concept of the Local Sponsor.
nevertheless, several business consultants in UAE and companies offering business setup solutions, help these budding entrepreneurs to recognize the responsibilities as well as liabilities towards a local sponsor.
Let us try and comprehend, who is a local sponsor? What are the errands involved? and how does business consultants in UAE, help businessmen through the process?
Who is a local sponsor?
One of the fundamental elements of starting a business in Dubai or anywhere across the UAE is to partner with a UAE national, also referred as local sponsor. You need a local partner to be in accordance to the commercial law of the UAE.
A UAE local sponsor is anyone who is a national resident of the United Arab Emirates. A local resident of the UAE can become a local sponsor in any of the UAE companies. However, expats residing in the UAE with an UAE residency visa cannot become local sponsors.
Understanding the outline of a Local Sponsor
As per the law, anyone willing to start a business should partner with a UAE national. The UAE national partner has to own 51 percent of the business. However, providing an ownership of 51% and finding a reliable partner does not seem feasible to most foreign businessmen who are new to the country.
Nevertheless, to be inclined with the directives specified by the UAE Commercial Companies Law, every UAE national also referred as UAE Local – enteringinto acontract of a local sponsorship with a foreign investor will hold at least 51% of the shares in the company. The law is as stated and applied on the share capital of an LLC as per Article 10 (1) of the Federal Law No. 2 of 2015.This simply means that any company established shall have one or more UAE partners holding at least 51 percent of the share capital of the company as per the rule.
How do business consultants help with local partnership or local sponsorship in the UAE?
Entrusting the 51% shares of your company to someone you have just come into contact can be a difficult decision. Hence, business setup consultants in Dubai offer local sponsorship in the most secure way! Business setup consultants become your contracted local partner as per your terms guaranteeing complete protection. This law is not restricted to all business activities but certainly to commercial and trading businesses. In such a way you do not only have yourself a reliable local partner, but also protect yourself through a contracted document which allows you to own 100% of the company.
Call Shuraa Business Setup
Contact Shuraa Business Setup and we can become your reliable local sponsor in the UAE. We at Shuraa Business Setup can secure you partnership! We ourselves become your contracted local partner as per your terms guaranteeing complete protection. This law is not restricted to all business activities but certainly to commercial and trading businesses.
To find how to retain 100% ownership of your company or find out if the law of partnering with a local is applicable to your business activity book a FREE consultation with our business setup consultants. Call us on +97144081900 or WhatsApp us on +971507775554. You may also email us on firstname.lastname@example.org or log on to https://www.shuraa.com/