Identify Local Sponsors

In the United Arab Emirates (UAE), foreign businesses looking to establish a presence often require a local sponsor, also known as a local partner or service agent, depending on the legal structure of the company. The local sponsor is a UAE national or a company wholly owned by UAE nationals who assists the foreign business in navigating local regulations and obtaining necessary licenses.
We, Sheikh Anwar Accounting & Auditing LLC, having vast experience in UAE, experts in this core area can help you to identify Local sponsors for your companies in UAE smoothly.
Here are common legal structures and the corresponding local sponsorship arrangements:

1. Limited Liability Company (LLC):

• Local Sponsorship Requirement: For LLCs, a foreign business typically requires a local sponsor who holds at least 51% of the shares. The local sponsor may be a silent partner and does not necessarily need to be involved in the day-to-day operations.

2. Professional Companies:

• Local Service Agent: In the case of certain professional activities, such as consulting or services, a foreign business may need a local service agent instead of a sponsor. The local service agent does not own any shares but assists with obtaining licenses.

3. Free Zones:

• Local Sponsorship in Mainland Operations: For businesses operating in the mainland outside of free zones, a local sponsor is required. However, businesses established within free zones can often operate without a local sponsor, as the free zones provide a business-friendly environment with full foreign ownership.

4. Branch of Foreign Companies:

• Local Service Agent: In some cases, a branch of a foreign company may require a local service agent, similar to the arrangement for professional companies. The local service agent does not own shares but facilitates local procedures.

It's important to note that free zones in the UAE offer an attractive option for foreign businesses, as they provide full foreign ownership, exemption from import and export duties, and simplified company setup procedures. Free zones have their own set of regulations and authorities, making them popular choices for various industries.

When identifying a local sponsor or service agent, businesses should consider factors such as reliability, reputation, and the terms of the sponsorship agreement. It is advisable to seek legal advice to ensure compliance with local regulations and to draft a clear and mutually beneficial agreement with the local sponsor.

When identifying a local sponsor or service agent, businesses should consider factors such as reliability, reputation, and the terms of the sponsorship agreement. It is advisable to seek legal advice to ensure compliance with local regulations and to draft a clear and mutually beneficial agreement with the local sponsor.