The Department of Economic Development (DED) along with other authority has made it compulsory for the foreign investor to find a local partner for growth and expansion of the firm. There are a number of legal terms and conditions placed by the regulatory authorities inside Dubai for doing business.
- Want to do the Business Setup of the company on onshore or mainland?
- Are you a foreign investor with idea of growth and expansion of your business?
- Do you need a secure and legal access to all the active opportunities inside UAE and Dubai?
All of this can be made possible by going for any of the two options either finding a local sponsor or a service agent for your company inside Dubai.
Why you need a Local Sponsor?
Any foreign investor who is not a resident or local of UAE would need a local sponsor for doing business inside the region. This can be hefty process by having a person who is not a real investor but gets about 51 percent of your company shares if its established-on mainland inside UAE. As you would only get about 49 percent of your total shares!
It’s an obvious question to ask. Why one should give about 51 percent of its company shares to some local Arab? But it has been made compulsory by the regulatory authorities of the UAE.
- Will try to make it simpler to process documentations and other legal terms which you might not process yourself.
- A guarantee that you are doing nothing illegal inside Dubai that is too what a sponsor would provide for you.
Why do one need local sponsor in Setting up Business?
There is tons of paper work to do when you are looking for business setup on the mainland Dubai. As documentation would take months to complete even if you have a local sponsor.
- A local sponsor would help you out in business setup inside Dubai.
- Most of the documents are in Arabic transcripts while you a foreign investor would need some help on that as well.
- From trade mark registration to occupying a space for doing your business each and everything would need you to have a local sponsor.
How to find the right Sponsor?
These days it’s hard-to-find good men as there can be many of the scenarios which can place you at a bad pole. For such reason’s Company Setup consultants are providing you with the ultimate services of having either a local sponsor or the service agent on cost effective rates.
- Find a local sponsor that has less trouble in communication and can schedule time for meetings as per your business demands.
- Check on the history and other family backgrounds of the local sponsor to avoid any of the trouble in future.
- Always be in touch with the local sponsor to form a healthy professional relationship.
- Be attentive when it comes to processing the documentation and other legal files.
What are the Benefits of the right Sponsor?
- Documentation would be processed with in the due date.
- There would be more productive outcome from the business setup.
- There can be more investments attracted if you have the right sponsor to support your business inside UAE and Dubai.
What are the disadvantages of a local sponsor?
- What can be more of a disadvantage for you if the local sponsor is not cooperative in nature.
- If a local sponsor is no more than according to the law all of the 51 percent share would be then transferred to their heir.
How we can help you in finding trustworthy sponsor?
Will if you are planning to invest inside Dubai there is a lot for you to benefit from. Consultants like us who are providing a number of active opportunities to investors and entrepreneur to setup their business have the capabilities to provide you with the right sponsors.
- Company Setup Consultants provides you with the professional local sponsor or service agent services as per your request.
- Consultancy would be provided as per your company requirements and what type of sponsor you seek.
How we make sure that our sponsor is trustworthy?
- The local sponsors have well reputed history with us which provides a strong sense of guarantee on their services.
- Any new sponsors without any evaluation are not provided to you.
- Our company’s personal relationship with the local sponsors can make it easy for you to handle most of the legal issues.
- The sponsor we provide have the best of professional and mental wellbeing as they would not be any disadvantage for your firm.
Types of local Sponsors
There are mainly 2 types of sponsors every business have. To now more details about sponsor types keep reading…
Local Sponsorship would provide 100 percent of the total shares holding to the investor. The local service agent or company agent would be the termed as the owner of the company and having 0 percent shares in it.
Advantages of a local service agent (LSA)
- The fees charged by the local service agents (LSA) are not much high.
- There will be more freedom to do daily operations inside Dubai having less interference of agent.
- No complications would be there while processing the different operations.
- Having a healthy and professional relationship with LSA’s.
- 100 percent ownership of the shares.
Disadvantage of a local service agent (LSA)
- The local agent upon having any sort of trouble with the legal terms can remove its name from the license.
- Unavailability of the Local Service agent (LSA) can result in the delay of work or any related operation.
Sponsorships which provide you the benefit to have the consultant and other legal entities represent for you as the corporate attorneys, while the sponsor is been paid by the committed fee.
Advantages of Corporate Sponsorship
- There will be less of interference by the sponsor during the legal operations.
- No stress will be there during the transaction upon the demise of the sponsor.
- Formal procedures will be handled by the lawyer.
Disadvantages of Corporate Sponsorship
- A number of complications like that of expensive fee would be charged for it.
- More paper work and documentations would be required to carry out any of the formal agreements
Cost of Local sponsorships inside Dubai
A wide range of packages for acquiring local sponsors in Dubai are been offered Company Setup Consultants.
- A quotation for sponsorship can be obtained by registration of all your interest with us.
- Normally it would cost starting from AED 5000 for acquiring sponsorship.
Is Local sponsor/service agent fee refundable?
As long as the MOA is not been signed the local sponsor fee is refundable
Do you offer corporate sponsorship as well?
Yes, we have a number of packages which also includes Corporate Sponsor ship.
Is my business secure if I have a sponsor from UAE?
We guarantee you the security for your business inside Dubai
How much does a sponsor charge annually?
Quotes will be provided which would depends upon the interest and other demands placed by you on our portal.
Who is a UAE Local Sponsor?
The local sponsors are residents of the UAE who play as the guarantee for your business to be legal and authentic in nature.
The normal cost of sponsorship inside UAE?
It can run from about AED 3000 to thousands of AED’s depending upon the size of the businesses one runs.