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Local Sponsor In Dubai, UAE

A local sponsor is an Emirati sponsor is a UAE national who can assist with the legal requirements and regulations of doing business in Dubai. Certain companies and individuals require a local sponsor to operate legally. However, appointing a local sponsor in Dubai for every activity is optional per the new regulations. There are three types of local sponsors in Dubai:

  • Corporate local sponsor
  • Individual local sponsor
  • Local service agent as a sponsor

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Local Sponsor in Dubai, UAE

Who Needs a Local Sponsor in Dubai?

Local Sponsor is a mandatory requirement on certain business activity when an expat is planning to open a company in Dubai,UAE Mainlaind. He must be UAE national i.e. an Emirati who owns 51% of the business. However, the sponsor has the majority of the stake, the Local sponsor doesn't have any say in the day to day business or nor they will be part of any profit of the business.

What Business does need a Local Sponsor in UAE

  • Branch office or representative office
  • Professional license holders
  • A civil company

Here are some common cases where a local sponsor is needed:

Mainland Companies: If you plan to establish a mainland company in Dubai, you will need a local sponsor holding at least 51% ownership of the company. The local sponsor can be an individual or a company owned by UAE nationals. However, it is optional to appoint a local sponsor in Dubai mainland according to the new regulations. Only specific business activities require a local sponsor.

Professional Service Providers: Professionals such as doctors, engineers, and lawyers who wish to set up a professional firm or practice in Dubai typically require a local sponsor who will hold 51% ownership of the company.

How to Find a Local Sponsor in Dubai?

You can find a local sponsor in UAE by one of the below mediums:

  • Business Setup Consultants
  • PRO Service Agencies
  • Networking and Business Events
  • Online Platforms and Directories

Once you find the right local sponsor for your business, please make sure you have considered the below points before getting into a contract with your local sponsor.

  • Find one authorized local sponsor. Do a background verification before making the contract with them. 
  • Try to find a local sponsor, a UAE national, based on their operational requirements. Hire a local government sponsor if you want to explore government sectors. The agent should be linguistic expertise.
  • Discuss the fees beforehand with the local sponsor. Maintain a legal document for the business progress.

What are the responsibilities of a local sponsor in Dubai?

The responsibilities of a local sponsor can vary depending on the specific arrangement or business activity. A local sponsor is typically responsible for providing their name and national identity details for legal and licensing purposes. They may also be required to provide sponsorship for visas, labor permits, and other governmental requirements. However, it's essential to have an explicit agreement with your local sponsor to define the scope of their responsibilities.

Can a local sponsor terminate the sponsorship agreement?
A local sponsor has the right to terminate the sponsorship agreement under certain circumstances. The terms and conditions of the contract should outline the termination procedures and any notice periods required. A clear and comprehensive understanding of your local sponsor is recommended to address such scenarios and ensure a smooth transition if necessary.

Does a local sponsor interfere in the day-to-day operations of my business?
No, a local sponsor typically does not have the right to interfere in the day-to-day operations of your business. This agreement should define the areas where the local sponsor may have involvement, such as signing official documents or representing the company in certain legal matters.

Benefits of having a Local Sponsor

There are multiple benefits of having a Local Sponsor in UAE.

You don't have to share your Profits
No Involvement in the Daily Business Operations
Comprehensive Agreements to ensures full transparency
Local Sponsor would be happy to assist if required

Why Choose Gryffin Capitalist

Gryffin Capitalist is a reputable company with expertise in assisting entrepreneurs and businesses in establishing their presence in Dubai and the wider UAE.  The company has a vast network of reliable local sponsors in Dubai. In addition, we have established strong relationships with local sponsors who can support your business setup.

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Frequently Asked Questions (FAQs)

A local sponsor is an Emirati or a UAE resident who works for your company in the UAE as a service agent. This person frequently serves as the company's "sleeper partner."

No, they don't get involved with day to day involvement of the company.