To own a mainland company outside the freezones, you need to have a local sponsor from the UAE. Local sponsor has to be an Emirati (UAE national) with a family membership card Gincia.
According to the laws of UAE, to establish a company with LLC in mainland, a minimum of 51% equity should be in local sponsor’s name.Foreign equity cannot exceed 49% and the distribution of profit can be agreed upon between the concerned parties.
The foreign partner(s) or a third party can be granted full operational power on memorandum of association. Only UAE national owned companies or the UAE nationals themselves may be considered for being nominee partner, and will be paid a lump sum amount per year.
Please consult our expert to find out the normal sponsorship fee.Usually, sponsors do not interfere in the company operations but they still hold the authority to sign on the company’s labour related or immigration related matters.
In case of foreign companies and civil companies (single owner of partnership) with foreign investments looking to establish a business in UAE, a local service agent needs to be appointed to comply with the regulations. These local service agents do not have any share in company andare also not involved in its operations but they are paid a lump sum fee per annum.
There is another sponsorship option for LLC and that is Corporate Nominee Sponsorship. One of the key difference between the local traditional sponsorship and corporate (entity based) sponsorship is that often companies who are looking for establishing a business in UAE worry that their local partner may change his/her mind in future but with corporate entity, the terms of contract still holds.
Bottom of Form Senior Business Consultancy will take care of the requirements of having your local sponsor effectively. Contact us today to request a consultation.
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