Local sponsorship

Mainland company formation in Dubai by foreign investors requires a local sponsor. A local sponsor could be a service agent or a UAE national as a shareholder. 

According to the UAE Civil Law and Companies Law, to form a mainland company, a minimum of 51% of shares need to be held by a local entity. You may need to discuss operational duties and profit-sharing with your local partner and reach upon an agreement. If you rely on a local service agent, they usually do not involve in the operations and thereby do not claim a share of the profits. However, you will have to pay them an annual fee.

Foreign investors often face difficulties in finding a local sponsor without the help of a PRO/ business consultant or lawyer. Company owners who are not registered with the labour department may require the e-signature of their sponsor. 

We, at Dubai Information Center, help you throughout in finding, collaborating, and operating your business with a local sponsor. You may concentrate on the core business processes and leave these matters to us.