Various Types of Sponsorship in the UAE

The UAE, a key business hub in the Middle East, offers various sponsorship options to facilitate business setup. Understanding these options is crucial for foreign entrepreneurs aiming to establish a presence in the UAE, particularly on the Mainland, where a local sponsor is required. Here’s a detailed look at the different types of sponsorship available in the UAE:

business guidence

Local Sponsor UAE

A local sponsor is an Emirati national who holds 51% of the company shares on paper. The sponsor, who must be a UAE resident over the age of 21, does not interfere in the company’s daily operations. They can be professionals, business owners, or government employees. In exchange for an annual fee, the local sponsor grants full power of attorney to the foreign investor, allowing them complete control over the business and its profits.

Corporate Sponsorship

Corporate sponsorship involves a UAE national business acting as the sponsor instead of an individual. The corporate sponsor owns 51% of the company on paper, while the foreign entrepreneur retains 100% control over operations and profits. This option provides more security and legal protection, as agreements are thoroughly vetted, and there’s no risk of ownership issues due to succession planning, which can be a concern with individual sponsors.

Local Service Agent UAE

A local service agent is necessary for professionals like doctors, engineers, and accountants who wish to start their businesses. The agent, an individual or company, acts as a representative in administrative dealings with the government but has no ownership or control over the business. The agent’s role is primarily for regulatory compliance, and they are compensated with an annual fee.

Foreign entrepreneurs must choose the appropriate type of sponsorship based on their business activities and location. According to the Department of Economic Development (DED), a sponsor holding 51% of the company’s stock is mandatory. In some cases, sponsors are paid a predetermined sum to assist with understanding UAE customs and business procedures.

Unicorn Global Solutions

If you’re looking to start a company in the UAE and need assistance with sponsorshipUnicorn Global Solutions can help. Our experts will ensure your business setup process is smooth and free of potential issues. Contact Unicorn Global Solutions for comprehensive support and services tailored to your business needs. Text us on WhatsApp or call us.

Facebook
Twitter
LinkedIn
WhatsApp
Picture of Sravanthi
Sravanthi

Leave a Reply

Your email address will not be published. Required fields are marked *

SMALL LOGO BLUE

Contact Us

Let's have a chat