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Corporate Sponsorship Services

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What exactly are corporate sponsorship services?

Sponsorship as a term in Dubai refers to a process in which a local business or individual holds a 51% stake in an organization. Nevertheless, sponsors do not have any say in decision-making, and they do not receive a profit share. Traditionally, local sponsorship was the only way that non-UAE nationals could operate a UAE Mainland business.
Furthermore, corporal sponsorship is one of the various ways of sponsorship in the UAE. As implied by its name, corporal sponsorship is where instead of an individual holding a 51% share in your business; a UAE-owned and registered company holds it. As with regular sponsors, the sponsoring company does not have any say in the decision-making of a company.
Even though individual sponsorship offers cheaper sponsorship options, corporate sponsorship is safer. If you want to ensure legal clarity, a smooth process, and total control of your business, corporate sponsorship is the more advisable option. A corporate sponsor can put long-term protections in place to protect a business’s profits, assets, and powers of administration and decision-making.

Benefits of Corporate Sponsorship in the UAE

  • Streamlined process: Acquiring a local sponsor for your company can prove to be an involved undertaking. For this and other reasons, is more profitable to seek corporate sponsorship services and work with a corporate sponsor that has procedures in place to ensure the process runs as smoothly as possible.
  • Zero interference: Most individual sponsors will not want to be involved with the day-to-day running of your business. Nevertheless, nothing ensures that this will not change down the line. However, corporate sponsors will not get involved with your business. This will allow you to maintain total control of your staff, clients, offering, and future direction.
  • Financial guarantees: A reputable and trustful corporate sponsor will charge a set annual fee. In other words, if your profits increase, a good Pro corporate sponsor will not want to stake a claim for a more significant share as payment for their services. Consequently, this allows you to retain 100% of your company´s profit.
  • Clear succession plan: If an individual sponsor passes away or retires, their company shares are passed down to their heir automatically. Even though this can be mitigated with succession planning, it is not always legally sound and can be expensive. Nevertheless, a company can never die or retire, so there is not any concern regarding it.
  • Legal protection: Even if you have adequate legal protection in place, entering into a business arrangement with an individual sponsor can prove to be risky. Nevertheless, working with a corporate sponsor can bring peace of mind to that matter. Reputable corporate sponsors only work with contracts drafted by first-tier legal counsel. In other words, your shareholder rights are always protected.

Which businesses require a UAE national sponsor in Dubai?

Limited Liability Company (LLC)

Free Zone Company

Off-shore Company

Mainland Company

Shakehand

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Which businesses require a UAE national sponsor in Dubai?

There are several businesses that require corporate sponsorship services in Dubai. For example, Mainland businesses that have an LLC (Limited Liability Company) as a legal structure fall under this necessity. In other words, having a national sponsor is a legal requirement for these types of businesses. In addition to this, there are several business initiatives these corporate sponsorship services, they are listed as follow:

  • Advertising Films
  • Textile Firms
  • Real Estate
  • Logistic and Cargo Firms
  • Trading Firms
  • Oil and natural gas industries
  • Jewelry concerns
  • Electronics and equipment industries
  • Other industries that require an industrial or manufacturing license to operate
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Other types of sponsorships in the UAE

Even though corporate sponsorship is required in a lot of businesses, it is not the only type of sponsorship in the UAE. Aside from corporate sponsorship, there are individual local sponsors and local service agents. That is why it is important to know the differences between these types of sponsorships and corporate sponsorships.

  • Individual Local Sponsor

  • Local Service Agent

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Individual Local Sponsor

When we mention an individual local sponsor in the United Arab Emirates, we refer to a UAE national that holds at least 51% shares of the company. In addition to this, the remaining 49% of shares goes to the foreign national. Moreover, the local sponsor does not have any gender-based restrictions.

Nevertheless, this individual local sponsorship needs to be commended to another reliable, trustful, and accountable individual. This is done to ensure the business functions smoothly. On the other hand, the individual partner is not obligated to partake in the business operations regarding the company.

Simply put, this type of corporate sponsorship is the most optimal one for any entrepreneurs establishing commercial endeavors and manufacturing firms in the United Arab Emirates.

Benefits of an Individual Local Sponsor:

  • It is a cost-effective means  for a sponsorship option
  • Aids in accomplishing official formalities
  • It serves as a scope for enhanced business opportunities

Drawbacks of an Individual Local Sponsor:

  • The sponsor´s physical presence availability matters. For example, if a sponsor is out of station for a long time, it can impact a business negatively.
  • Delays can be caused by sudden and unfortunate scenarios. For example, sudden death and prolonged health issues.
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Local Sponsorship Service Agent

Unlike an individual local sponsor, the local service agent does not hold ownership rights in the business. Furthermore, they also do not partake in day-to-day business affairs for the company it works with. In other words, 100% ownership rights are held by the foreign national.

A Local Service Agent (LSA) serves as an intermediary between the business or company, and the government agencies. They facilitate official talks and meetings on behalf of the business concern. Moreover, they offer their services for annual fees based on an agreement, with the renewal procedures initiated by them. They are ideal for sole establishments, professional companies, and branch companies.

Benefits of an LSA:

  • They can be pursued online
  • With them, the foreign national obtains 100% ownership rights
  • They handle all government agency-related administrative tasks

Drawbacks of an LSA:

  • Appointing a good and competent LSA can be a tedious and difficult task
  • Their unavailability causes  unnecessary administrative delays

Business Structures

Explore our Frequently Asked Questions (FAQ) for instant answers to common queries. We’ve compiled a comprehensive
list of the most commonly asked questions to make your experience with us smoother.
A Sole Proprietorship is a business owned by one person, which can carry out commercial, professional, and industrial activities.

Sole Proprietorships Business Types

A professional business sole proprietorship covers a range of professions from owning a seafood restaurant to a bespoke tailoring service. In those cases, the owner does not have to be an expert in that particular business field, but as the sole owner of a consultancy, for example legal counsel, building contracting or home tutoring, the sole proprietor must specialise in that business. Most professional-type sole proprietorships providing personally offered services or the services of a recognised profession such as medicine or engineering require a Local Service Agent (LSA) if they are owned by a National of a country other than the UAE or GCC countries. The local service agent is a UAE National who manages licensing requirements and other government-related matters for your business, in exchange for an annual fee. The LSA has no responsibility for your business and no financial commitment to the business or its activities in Dubai or elsewhere. A sample Local Service Agent Agreement is available, explaining the relationship and the obligations of the owner and the LSA. This agreement must be authenticated by a Notary Public/Court within the UAE.

Ownership

  • A sole proprietorship can only be owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for business debts and any other financial obligations.
  • A professional-type sole proprietorship can be owned by an individual of any nationality.
  • A sole proprietorship that is industrial or commercial can be owned only by UAE Nationals or GCC Nationals.
  • A sole proprietorship that is a commercial or industrial business must be owned 100% by a UAE National. The UAE National owner and any other party can later work to decide on how profits might be shared and how day-to-day business decisions will be made. A sole proprietorship that offers legal services—known as a legal consultancy—does not require a local service agent.
A Sole Proprietorship is a business owned by one person, which can carry out commercial, professional, and industrial activities.

Sole Proprietorships Business Types

A professional business sole proprietorship covers a range of professions from owning a seafood restaurant to a bespoke tailoring service. In those cases, the owner does not have to be an expert in that particular business field, but as the sole owner of a consultancy, for example legal counsel, building contracting or home tutoring, the sole proprietor must specialise in that business. Most professional-type sole proprietorships providing personally offered services or the services of a recognised profession such as medicine or engineering require a Local Service Agent (LSA) if they are owned by a National of a country other than the UAE or GCC countries. The local service agent is a UAE National who manages licensing requirements and other government-related matters for your business, in exchange for an annual fee. The LSA has no responsibility for your business and no financial commitment to the business or its activities in Dubai or elsewhere. A sample Local Service Agent Agreement is available, explaining the relationship and the obligations of the owner and the LSA. This agreement must be authenticated by a Notary Public/Court within the UAE.

Ownership

  • A sole proprietorship can only be owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for business debts and any other financial obligations.
  • A professional-type sole proprietorship can be owned by an individual of any nationality.
  • A sole proprietorship that is industrial or commercial can be owned only by UAE Nationals or GCC Nationals.
  • A sole proprietorship that is a commercial or industrial business must be owned 100% by a UAE National. The UAE National owner and any other party can later work to decide on how profits might be shared and how day-to-day business decisions will be made. A sole proprietorship that offers legal services—known as a legal consultancy—does not require a local service agent.
A Sole Proprietorship is a business owned by one person, which can carry out commercial, professional, and industrial activities.

Sole Proprietorships Business Types

A professional business sole proprietorship covers a range of professions from owning a seafood restaurant to a bespoke tailoring service. In those cases, the owner does not have to be an expert in that particular business field, but as the sole owner of a consultancy, for example legal counsel, building contracting or home tutoring, the sole proprietor must specialise in that business. Most professional-type sole proprietorships providing personally offered services or the services of a recognised profession such as medicine or engineering require a Local Service Agent (LSA) if they are owned by a National of a country other than the UAE or GCC countries. The local service agent is a UAE National who manages licensing requirements and other government-related matters for your business, in exchange for an annual fee. The LSA has no responsibility for your business and no financial commitment to the business or its activities in Dubai or elsewhere. A sample Local Service Agent Agreement is available, explaining the relationship and the obligations of the owner and the LSA. This agreement must be authenticated by a Notary Public/Court within the UAE.

Ownership

  • A sole proprietorship can only be owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for business debts and any other financial obligations.
  • A professional-type sole proprietorship can be owned by an individual of any nationality.
  • A sole proprietorship that is industrial or commercial can be owned only by UAE Nationals or GCC Nationals.
  • A sole proprietorship that is a commercial or industrial business must be owned 100% by a UAE National. The UAE National owner and any other party can later work to decide on how profits might be shared and how day-to-day business decisions will be made. A sole proprietorship that offers legal services—known as a legal consultancy—does not require a local service agent.
A Sole Proprietorship is a business owned by one person, which can carry out commercial, professional, and industrial activities.

Sole Proprietorships Business Types

A professional business sole proprietorship covers a range of professions from owning a seafood restaurant to a bespoke tailoring service. In those cases, the owner does not have to be an expert in that particular business field, but as the sole owner of a consultancy, for example legal counsel, building contracting or home tutoring, the sole proprietor must specialise in that business. Most professional-type sole proprietorships providing personally offered services or the services of a recognised profession such as medicine or engineering require a Local Service Agent (LSA) if they are owned by a National of a country other than the UAE or GCC countries. The local service agent is a UAE National who manages licensing requirements and other government-related matters for your business, in exchange for an annual fee. The LSA has no responsibility for your business and no financial commitment to the business or its activities in Dubai or elsewhere. A sample Local Service Agent Agreement is available, explaining the relationship and the obligations of the owner and the LSA. This agreement must be authenticated by a Notary Public/Court within the UAE.

Ownership

  • A sole proprietorship can only be owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for business debts and any other financial obligations.
  • A professional-type sole proprietorship can be owned by an individual of any nationality.
  • A sole proprietorship that is industrial or commercial can be owned only by UAE Nationals or GCC Nationals.
  • A sole proprietorship that is a commercial or industrial business must be owned 100% by a UAE National. The UAE National owner and any other party can later work to decide on how profits might be shared and how day-to-day business decisions will be made. A sole proprietorship that offers legal services—known as a legal consultancy—does not require a local service agent.
A Sole Proprietorship is a business owned by one person, which can carry out commercial, professional, and industrial activities.

Sole Proprietorships Business Types

A professional business sole proprietorship covers a range of professions from owning a seafood restaurant to a bespoke tailoring service. In those cases, the owner does not have to be an expert in that particular business field, but as the sole owner of a consultancy, for example legal counsel, building contracting or home tutoring, the sole proprietor must specialise in that business. Most professional-type sole proprietorships providing personally offered services or the services of a recognised profession such as medicine or engineering require a Local Service Agent (LSA) if they are owned by a National of a country other than the UAE or GCC countries. The local service agent is a UAE National who manages licensing requirements and other government-related matters for your business, in exchange for an annual fee. The LSA has no responsibility for your business and no financial commitment to the business or its activities in Dubai or elsewhere. A sample Local Service Agent Agreement is available, explaining the relationship and the obligations of the owner and the LSA. This agreement must be authenticated by a Notary Public/Court within the UAE.

Ownership

  • A sole proprietorship can only be owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for business debts and any other financial obligations.
  • A professional-type sole proprietorship can be owned by an individual of any nationality.
  • A sole proprietorship that is industrial or commercial can be owned only by UAE Nationals or GCC Nationals.
  • A sole proprietorship that is a commercial or industrial business must be owned 100% by a UAE National. The UAE National owner and any other party can later work to decide on how profits might be shared and how day-to-day business decisions will be made. A sole proprietorship that offers legal services—known as a legal consultancy—does not require a local service agent.
A Sole Proprietorship is a business owned by one person, which can carry out commercial, professional, and industrial activities.

Sole Proprietorships Business Types

A professional business sole proprietorship covers a range of professions from owning a seafood restaurant to a bespoke tailoring service. In those cases, the owner does not have to be an expert in that particular business field, but as the sole owner of a consultancy, for example legal counsel, building contracting or home tutoring, the sole proprietor must specialise in that business. Most professional-type sole proprietorships providing personally offered services or the services of a recognised profession such as medicine or engineering require a Local Service Agent (LSA) if they are owned by a National of a country other than the UAE or GCC countries. The local service agent is a UAE National who manages licensing requirements and other government-related matters for your business, in exchange for an annual fee. The LSA has no responsibility for your business and no financial commitment to the business or its activities in Dubai or elsewhere. A sample Local Service Agent Agreement is available, explaining the relationship and the obligations of the owner and the LSA. This agreement must be authenticated by a Notary Public/Court within the UAE.

Ownership

  • A sole proprietorship can only be owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for business debts and any other financial obligations.
  • A professional-type sole proprietorship can be owned by an individual of any nationality.
  • A sole proprietorship that is industrial or commercial can be owned only by UAE Nationals or GCC Nationals.
  • A sole proprietorship that is a commercial or industrial business must be owned 100% by a UAE National. The UAE National owner and any other party can later work to decide on how profits might be shared and how day-to-day business decisions will be made. A sole proprietorship that offers legal services—known as a legal consultancy—does not require a local service agent.

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