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:
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.
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:
Drawbacks of an Individual Local Sponsor:
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:
Drawbacks of an LSA:
Contact us now and let’s embark on a journey towards maximizing your business potential together.