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Introduction to Local Sponsorship Services in Dubai
Dubai has one of the best infrastructures around the globe and provides access to a global workforce, but it has a complex process of setting up a business. The local laws and rules put various restrictions on foreign investors who want to establish their business in Dubai, and it is quite burdensome for an individual to understand the local laws. Hence, there arises a need for a local sponsor or a partner who helps you in setting up your business in Dubai smoothly and efficiently. We at Enterslice provide local sponsorship services that will help you get a perfect local sponsor per your business type and help you bridge the gap between your business and Dubai government agencies. Having a local sponsor is not only a comfort but also a legal requirement in various sectors such as oil, gas, security, military, post, telecom, medical retail and transport services in Dubai mainland; you need to have a local sponsor to help you establish your business and represent you before the government authorities. Experts at Enterslice will find you a local sponsor who will aid you in building a successful business in Dubai through their connections in the UAE markets.
What is a local sponsorship in Dubai?
A local sponsorship implies that a foreign investor can't own 100% of the business, and a local sponsor should hold 51% of your business. As per the 2021 amendment to the commercial company law of the UAE, having a local sponsor is mandatory if your business is engaged in business activities related to the sector of banking, insurance, gas, oil, telecom, transport, military and security services.
Local Sponsor in Dubai
A local sponsor, also known as a local partner or Emirati partner, is a UAE national who holds 51% of the business of a foreign investor and aids them in setting up their business in Dubai Mainland. A local sponsor helps you deal with the complicated process of establishing a business in Dubai and also provides an understanding of local laws and rules, which is very difficult to understand for a foreign investor. Historically, it was necessary to get a local sponsor if you wanted to set up a business in Dubai mainland, but following an amendment in June 2021, more than 1000 commercial activities are free from the legal requirement of having a legal sponsor, including education, technology, manufacturing, tourism and hospitality services. But still, there are many business sectors of central importance where it is legally necessary to have a legal sponsor who will own 51% of your business. These sectors include telecom, post services, oil, transport, gas, insurance, banking and security services. Connect with our experts at Enterslice, and we will provide you with a local sponsor in a smooth and hassle-free manner.
In the case of the Free Trade zones of Dubai, it was never necessary to have a local sponsor, and it is still not a legal requirement under the commercial company law of the UAE. The goal behind establishing the free zones in Dubai was to encourage foreign entrepreneurs and investors to set up their businesses there and increase the flow of FDI (foreign direct investment) in the UAE. However, a free zone company is bound by many restrictions, such as not being able to expand its business operations to other UAE markets and only being allowed to conduct its business in the specified jurisdiction of the free zone. Some free zones are formed for conducting specific business activities, such as Dubai Science Park or Dubai Gold and Diamond Park. So, in these zones, you are restricted to trade in specific business activities for which they are formed.
Types of Local Sponsors in Dubai
If you want to set up your business in Dubai Mainland, there are three kinds of local sponsors you can choose from depending on the type of your business activity
The first type of local sponsor you can get in Dubai is a local service agent. A LSA is needed when you are setting up a business related to business services. For example, if you are a doctor or an engineer and want to set up your business in Dubai in a similar field of services, you should get a local service agent who will help you get the necessary licenses and permits that you might need.
The second type of sponsor that you can get is an individual sponsor who will be a citizen of UAE and hold 51% shares of your company. He or she should be more than 18 years of age in order to be qualified as a local sponsor in Dubai. If you could get a government employee as your sponsor, then it would be helpful in getting access to various high-paying government contracts.
The last type of sponsor is a corporate sponsor, i.e., any local business set up in UAE that will be holding 51% shares of your company and will help you pave the way for your business.
We at Enterslice can help you get the best local sponsor for your needs and type of business.
Benefits of a Local Sponsorship in Dubai
Having a local sponsor in Dubai provides various benefits to foreign entrepreneurs and business owners, making it an attractive business destination. Some of the benefits are listed below for your understanding:
If you have a local sponsor in Dubai, you can open unlimited branches of your business in the UAE without any restrictions.
As the local sponsor or partner is a citizen of UAE, he or she has a wide network of connections in the business world, which can help you grow your business by getting you investors and customers.
If you are running a limited liability company in Dubai Mainland with a local sponsor holding 51% of your shares, you will be eligible for 100% tax exemptions, and your investors will be granted 100% repatriation on profits earned. Connect with our experts at Enterslice to get a local sponsor in Dubai and enjoy the above-stated benefits for your business.
Contribution of a Local Sponsor in Dubai
A local partner or sponsor helps you establish your business in Dubai Mainland by dealing with the government authorities and provides you with various additional advantages, like the translation of Arabic documents into your languages like English or Hindi. He or she will also help you in situations concerning the revocation of the work visas and will represent you before the government. Your sponsor will also represent you before the UAE government authorities and ensure that your business follows all the UAE laws, rules and regulations. In addition to these roles and responsibilities, the sponsor also takes care of the closure of business bank accounts, renewal of licenses, and debt settlement and provides suggestions to improve the business and achieve growth in the UAE markets.
Enterslice Local Sponsorship Services in Dubai
We stand apart from other service providers and provide you with a tailor-made local sponsor for your business. Here is a list of a few things that we do at Enterslice to provide you with the best sponsorship services to establish your business
We have a background check of the local sponsor, as a local sponsor from a well-reputed family can provide us with his connections and networks in the UAE market.
We also go through the qualifications of the local sponsor as qualifications of a local sponsor ensure that there would not be an issue regarding the language barrier in the future.
We provide you with the sponsor as per the type of your business activity; for example, if you are engaged in a professional services business, then we will provide you with a local service agent who will assist you in getting the necessary permits and licenses. If you are planning to set up a commercial business, then we will provide you with an individual sponsor, and in the case of a manufacturing and trading business, we offer you a corporate sponsor that will help you establish a successful manufacturing and trading business in Dubai.
So, you can just connect with us and relax; we will take care of all the complicated processes and ensure that your business is in compliance with all the local laws and rules of Dubai.
