Local Sponsor Services in UAE

How to Setup a Services Company in UAE Mainland – Things to Know

There is 100% Expatriate Ownership made available in Mainland Companies as per the Commercial Companies Law amendments. So, there is no requirement for a UAE National holding 51% shares to register a mainland company. Also, for the Services Company License in UAE there is no requirement for a Local Service Agent. UAE is a major business hub where the new company formation is seeing linear growth over the years. Services License in Dubai, UAE is a popular business licensing category and remains a top choice for a new company set up by many investors globally. The services sector makes up a significant presence in the mainland of UAE. There is a strong demand for a services company License in UAE. Accordingly, UAE has a growing business opportunity and availability of a wide target audience for the companies to test their service solutions. Setup a Services Company in UAE Mainland To set up a services company in UAE the investor must follow certain steps. Taking a Services License in Dubai, UAE is esssential for running a Services Company. There is no requirement of a UAE Citizen or a UAE Corporate as the Local Service Agent for setting up a services company in the region. As per latest amendments to Commercial Company Law, the foreign investor will have 100% ownership of the company. Previously, the Local Service Agent will act as liaising agent for all administrative related tasks. They liaise with the Department of Economic Development (DED) for the company registration, visa processing, and any related activities. Foreign investors can retain their local sponsor for the company if they wish to maintain their current partnership. The Local Service Agent will be having no power in the operations or share capital of the company. However, the investor must pay the Local Service Agent fee annually during the renewal of the Professional Business License. There will be a side agreement with the Local Service Agent on the payment terms and other conditions. The Service License is for the individual or a group of shareholders under a company name to legally conduct the desired business activity. The Department of Economic Development (DED) of the respective emirates is the issuing authority for service licenses for a company in the mainland of UAE. Services Companies License in Dubai – list of business activities Foreign investors can register Service Companies in Dubai, UAE for various business activities. The Services License is one of the most sought-after business license categories in Dubai. Under the services license in Dubai, investors can open consultancies and companies across a wide range of business activities ranging from engineering to information technology to architecture, and more. The mainland services company will have a virtual license valid for 1 year that must be renewed yearly. The investor can take an office space by preparing a lease agreement with any commercial space owners or business centres in the mainland of UAE to start operations from the office. The business owner after obtaining the Services Company License in Dubai can apply for the UAE residence visa. Then proceed with applying for the bank account for the new company. Services Company License in Dubai – List of Documents There are few documents such as the investor passport, photograph, and application form to start the processing of the Services Company License. For professional services, the educational qualification of the investor is advisable to submit for faster processing. For applying UAE residence visa for the investor and sponsor employees the company must apply for the establishment card. Then proceed with applying for the residence visa and bank account. (AURION will assist you with the document attestation from the Embassy and Ministry of Foreign Affairs) Similarly, the team will help in preparing the Shareholder Agreement and help process the other company documents. Along with the Services Company License, the licensing authority will provide the Lease contract for the office space, Memorandum of Association and Article of Association for the company. Is a Service Agent Mandatory for a Services Company in Dubai/UAE? There is no requirement of having a Local Service Agent in UAE for opening a Services Company. In case, the business owners want to seek the support of a Local Sponsor or Local Service Agent, they can utilize the provision. Business Owners can engage with the following Local Service Agents to open a company and liaise with government officials. 1. UAE Citizen as Local Service Agent The services Company in Dubai can secure a license by appointing a UAE National as the Local Service Agent. They will assist in the administrative process, visa application, and getting government clearance for the company. They will have zero ownership in the company and will not be involved in any administrative tasks. There is a yearly fee payable to the Local Service Agent to continue their services. In the case of a UAE National as a local service agent, there is always a provision to change the local service agent in case of any dispute or unexpected situations. 2. UAE National Owned Company as Local Service Agent Another option is to appoint a UAE National owned company as a Local Service Agent. The services company in Dubai can enhance their security and trust by having a corporate as the local service agent. Also, there would be zero involvement in the company’s working and operations by the Corporate Company. Furthermore, any personal disinterest or related circumstances can be avoided by appointing a corporate company. Hence, in a nutshell for setting up a service company in UAE, the investor has to get a local service agent for processing the services business license from the DED. There is a host of business benefits for the investor in getting a Services License in Dubai and setting up a services company in the mainland of Dubai, UAE. It helps in getting government contracts and working with other mainland companies. Also, helps in expanding into the local UAE market, it is a perfect option for services companies. To know

Advantages and Disadvantages of UAE’s Mainland and Free Zone Companies

UAE is a growing trade and economic hub with the Mainland and Free Zone companies contributing significantly to the growth of the economy. There are several advantages and Disadvantages for free zones and mainland companies in the UAE. An investor can choose either free zone or mainland depending on their business requirements. The business-friendly policies in UAE make it a prime choice for foreign investors to set up their establishments and grow business here in UAE. Advantages and Disadvantages of Free Zone and Mainland Companies in UAE It is a major decision-making for every investor when it comes to moving to the UAE mainland from the Free Zone company. Multiple factors determine the choice: There are advantages and disadvantages of Free Zone and Mainland Companies in UAE. However, the business owner must look at their specific requirement before choosing the jurisdiction. Mostly, the advantages of a Mainland company over a Free Zone Company in UAE are: Similarly, there are a few important points to consider for the free zone company before moving to the mainland, those are: 1. Scope of Business Operations For companies in specific industry sectors such as Manufacturing, it is advisable to remain in a free zone rather than on the mainland. Free Zones have Zero per cent customs duty for the import of raw materials and goods. Another key advantage of a Free Zone Company is the 100% foreign Ownership in UAE. For example, the Dubai Airport Free Zone or Hamriyah Free Zone is ideal for setting up an international trading company in the UAE. Thus, companies can easily facilitate trade through airports and seaports rather than being on the mainland. The Free Trade Zones have easy access to customs and upscaled logistics setup for easy transit of goods to and from the UAE. Also, free zone companies can benefit from similar businesses around and work in collaboration. 2. List of Business Activities One of the advantages of Free Zone companies is the scope of business activities and their selection. Within a single Free Zone license, the investor can choose up to 7 business activities (mix and match). On the contrary, mainland Companies will have a disadvantage as certain business activities are favorable to operate in the Free Zone. This is especially due to the faster customs clearance and absence of company duty on imports. Hence, while transferring the free zone company license to the mainland, the investor must ensure that a similar business activity is available on the Mainland. The investor must approach the new licensing authority in the mainland i.e., the Dubai Economic Development for the list of activities. Also, the process of approvals, and procedure for obtaining a business license, UAE residence visa, etc., varies between the mainland and free zone. 3. 100% expatriate ownership in Mainland Companies of UAE One of the major advantages for Mainland Companies of UAE is the 100% Expatriate ownership. There is a path-breaking change in UAE Commercial Law. However, investors must do their due diligence in choosing the right business jurisdiction. The 100 % foreign ownership in the UAE mainland has created a buzz in the corporate landscape and is expected to give rise to a host of business opportunities. It has given a choice for those who are already operating in UAE to gain full control of their business, as well as for the free zone companies to move to the mainland. 4. Shareholder Profile One of the disadvantages of a Mainland Company is the additional step of updating the shareholder profile. For issuing the professional license in the Mainland of UAE, the investor must have the necessary qualifications. Also, the educational records of the shareholders must be stamped by the Ministry of Foreign Affairs are required to be submitted for issuing the business license. Whereas, in Free Zones, there are no such pre-approvals for service licenses. Few Free Zones in UAE allow company formation remotely without the presence of the shareholder. Thus, it is one of the advantages of having a Free Zone Company in the UAE. 5. Office Space and UAE Residence Visa The Free Zones have an advantage due to the variety of built-in office spaces and co-working spaces. The investors can choose a wide range of business activities to start a business in any of the Free Zone of UAE. Similarly, in the mainland, the most common office types are small offices and Flexi-Desk Solutions. Also, there are large warehouses and land availability for industrial units. The advantage of a mainland company is many business centres offer Flexi-desk solutions. Most of the other businesses choose to have a physical office location on the mainland as their office address. Mainland company setup cost varies depending on the office rent, furnishing cost, and other administrative expenses. 6. UAE Residence Visa through Company Formation The advantage of Free Zone company formation is the separate immigration and visa department for the investors. The processing time is slightly faster in the Free Zones. One of the disadvantages of a Free Zone is that the visa quota is as per the company package. On the mainland, one of the major advantages is that the employee visa quota depends on the office space, whereas in the Free Zone, there is a visa quota for a business license that is pre-set. Free Zone office space must be upgraded to increase the staff size, which could in turn be a costly affair when compared to the mainland. The rentals for the commercial spaces in the mainland are much more competitive with more options becoming ready across UAE. 7. Flexibility – Scope of Business Operations The Free Zone business is ideal for services, general trading, and commercial sectors. These sectors export the majority of their products. Also, they venture into the local UAE market through distributors. Free Zone regulations and policies govern the Free Zone company operation in UAE. In terms of the scope of business operations, Free Zone has a well-defined structure. So there are some disadvantages in the

Local Sponsor Services in UAE

Local Sponsor in UAE

Appointing a Local Sponsor for your LLC Company

Choosing the Right Local Sponsor in UAE

Local Service Agent in Dubai (LSA)

Corporate Sponsorship in Dubai

Advantages of Corporate Sponsorship

1. Sponsor Availability All Time

2. No Involvement in the Daily Business Operations of the Sponsored Company

3. Comprehensive Agreements by Corporate Company Lawyers

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