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Local Sponsor Arrangement
Starting your own company can be very complicated. There are many legal issues that should be covered before setting up your business. When you want to start a company abroad, the procedure becomes even more challenging. Thousands of foreign businessmen want to establish their business in Dubai, a city that is also home to many expats. One of the most common challenges faced by foreigners who want to start a business in Dubai is Local sponsor arrangements. The business operating on the city’s mainland that is licensed for commercial or industry may be owned by foreign nationals with 49% of the share. 51% of the share must be owned by an Emirati which is called as local sponsor
Responsibilities of a Local Sponsor
The local sponsor is not only accountable for sharing company shares but also the local sponsor is in charge of the following significant dealings:
- Cancellation of employment visa
- Cancellation of employees’ labor status
- Bank account closing
- Settlement of outstanding debt, if any
- Local service agent represent business in front of government officials and Ministries for renewal process.
- A local sponsor is required to for understanding business contracts which are in Arabic for business registration so they can sign on behalf of other foreigner business partner.
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Type of Local Sponsor in Dubai, UAE
- Corporate sponsorship
- Individual sponsorship
- Local service agent
In Dubai and the UAE, local sponsor arrangements are important. It gives international businesses access to the local market. However, to guarantee a successful and seamless business venture in Dubai, understanding of the terms of the agreement and working with the trustworthy partners is important. . Global services will carefully evaluate requirement of your business and assist you in finding the Local Sponsor for your Company.
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