Local Sponsor / Sleeping Partner for Business
Company formation in Dubai comes with a number of rules and regulations. The Dubai business setup can be divided into two:
- The Dubai Mainland Company
- Free Zone Company Formation
Starting a company in Dubai and operating a business in the Dubai Mainland area requires a local sponsor be compulsorily appointed. When a foreign investor setups a business in Dubai, the UAE legislation states that a local sponsor be appointed for representative dealings with the ministries and the government for getting the various paperwork done.
A local sponsor is an Emirati or a UAE national, who acts as your service agent for your business in the UAE and he usually acts as a sleeping partner of your company.
Being a mandatory requirement, it’s a real, inevitable challenge for foreign investors to find the right local sponsor in Dubai, appropriate for their line of business.
Usually the local service agent has no particular role or interest in the business but is appointed for the sole purpose of liaising with the government departments and authorities to obtain labor and immigration approvals, visas and complete other necessary paperwork for the company. The local service agent is to be paid an annual fee for his services.
Are you looking to register your freezone Company in Dubai?
We provide fast and reliable freezone Company formation services in Dubai. Our freezone Company formation fees are highly competitive. Please get in touch with us for professional assistance. You can call us on +971 4 222 0143, send us email at [email protected] or use the contact us form on this website. First consultation is FREE.