Local Sponsor Arrangement
Starting your own company can be very complicated. There are many legal issues that should be covered before setting up your business. When you want to start a company abroad, the procedure becomes even more challenging. Thousands of foreign businessmen want to establish their business in Dubai, a city that is also home to many expats. One of the most common challenges faced by foreigners who want to start a business in Dubai is Local sponsor arrangements. The business operating on the city’s mainland that is licensed for commercial or industry may be owned by foreign nationals with 49% of the share. 51% of the share must be owned by an Emirati which is called as local sponsor
Responsibilities of a Local Sponsor
The local sponsor is not only accountable for sharing company shares but also the local sponsor is in charge of the following significant dealings:
- Cancellation of employment visa
- Cancellation of employees’ labor status
- Bank account closing
- Settlement of outstanding debt, if any
- Local service agent represent business in front of government officials and Ministries for renewal process.
- A local sponsor is required to for understanding business contracts which are in Arabic for business registration so they can sign on behalf of other foreigner business partner.
Type of Local Sponsor in Dubai, UAE
- Corporate sponsorship
- Individual sponsorship
- Local service agent
In UAE, local sponsor arrangements are important. It gives international businesses access to the local market. However, to guarantee a successful and seamless business venture in UAE, understanding the terms of the agreement and working with trustworthy partners is important. Al Dhakeya Services will carefully evaluate the requirements of your business and assist you in finding a Local Sponsor for your Company.
