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Local Sponsor Services in UAE

Local Sponsor is a pre-requisite for setting up a Limited Liability Company in the mainland of UAE. As per the UAE Commercial Companies’ Law and UAE Civil Law, Local Sponsors are either UAE National or a Corporate entity that is wholly owned by a UAE National(s).

For registering an LLC Company in UAE, it is mandatory to appoint a UAE National Sponsor as the primary shareholder. The UAE National must be owning 51% of the company shares. The rest (49%) can be owned by the foreign shareholder(s).

Appointing a Local Sponsor for your LLC Company

The UAE National Sponsor is appointed for an LLC Company on a yearly contract by paying the required Sponsorship Fee.

The appointed Local Sponsor has no role in the daily operations of the company. The role of the Local Sponsor is liaising with the necessary government departments for obtaining employee visas, license approvals, and other administrative services.

Choosing the Right Local Sponsor in UAE

AURION will help you in finding the right Local Sponsor for your LLC Company by thoroughly assessing your business requirements. To select the right Local Sponsor, you must consider few things:

Build a Rapport with your Sponsor – For the setting up of business and during the course of business, there will be a requirement of the Local Sponsor to liaise for Government Services like applying for new employee visas, approvals, immigration, etc. Hence, building a rapport with the Sponsor is essential.

Clear and Transparent Communication– There must be a clear communication between you and the local sponsor to avoid any miscommunication on the share responsibilities and confusion on the clauses on the shareholder agreement.

List Out the Terms and Conditions Precisely – Ensure that the Memorandum of Association provided by the Local Sponsor have all the Terms and Conditions listed out clearly and are agreeable for you.

Ensure Right Documentation – Before signing up with the Local Sponsor ensure you have the right documentation of Power of Attorney(POA), side agreements, etc., to protect your shareholding and business assets in case of any disputes.

Local Service Agent in Dubai (LSA)

There are few company structures in UAE requires appointing the local Service Agent instead of a local Sponsor unlike an LLC Company setup.

The professionally license companies, sole establishments, Civil Work Companies, Branch of a Free Zone, Foreign Branch, Representative Office of Free Zone/Foreign Branch, etc., must appoint a Local Service Agent while registering the company with the authorities in UAE.

The Local Service Agent does not own any percentage share in the company but acts as local representative for the company to liaise with the Government for Visa and Administrative services.

Local Services Agent Agreement must be signed to appoint the agent for the newly formed company for a yearly agent fee.

Corporate Sponsorship in Dubai

Corporate Sponsor is where a corporate entity that is fully owned by UAE Nationals will act as the Sponsor for your newly formed LLC Company.

Instead of forming an agreement with an individual (Local UAE National), Corporate Sponsor will be a legal entity in UAE and the Lawyer, or the manager/PRO Service Agent will prepare the agreement to represent the corporate as the local Sponsor for the new LLC Company.

Advantages of Corporate Sponsorship

  1. Sponsor Availability All Time – Corporate Sponsors would be always available for carrying out the Government procedures (Labour Contract, Approvals, visa, Immigration, emirates ID, etc.) for the sponsored company.

The individual UAE National Sponsor availability is subjected to their presence in the UAE. Whereas Corporate Sponsor would be always remaining in UAE as it is an entity registered in UAE.

  1. No Involvement in the Daily Business Operations of the Sponsored Company- The full control of the LLC Company remains with the Foreign owner even if the local sponsor is holding the major shares. The side agreement states the scope of responsibilities of each parties in detail.
  2. Comprehensive Agreements by Corporate Company Lawyers – The Sponsor Agreement as well as the Memorandum of Association in the case of the Corporate Sponsor would be mostly prepared by the company itself.

Corporate Sponsors have a PRO Team for assistance and ensures full transparency and legal protection for both the shareholders

How Aurion Will Assist you?

Aurion will assist you in setting up of your LLC Company in UAE the right way and ensure all the paperwork is done according to the requirements as well as arrange a Local Sponsor for UAE (Individual/Corporate) as per your business requirements and liking. You as an Investor will enjoy 100% financial and Operational Control on your business.

Our team of expert Business Consultants will prepare precise side agreement to protect your shareholding rights in case of any misalignment with the Sponsor. Talk to our experts Business Consultants right away to know more about finding a Local Sponsor for your company.