How to Find the Best Local Sponsor in Dubai: A Complete Guide
As a foreign business owner, establishing your company in Dubai can be a challenging process. One of the most crucial aspects of setting up a business in Dubai is having a local sponsor. A local sponsor in Dubai is a UAE national who will act as a representative of your company and a local partner.
At its core, local sponsorship is a legal requirement for all foreign investors seeking to do business in Dubai. It is a mandatory process, and failure to comply with the regulations could result in legal consequences, including hefty fines, imprisonment, and deportation.
Who is a Local Sponsor in Dubai?
A local sponsor is a UAE national who has the legal right to sponsor foreign-owned companies in Dubai. A local sponsor in Dubai is responsible for obtaining the necessary licenses and permits, registering the company with the Dubai Chamber of Commerce and Industry, and handling all the legal procedures related to the business’s registration.
Types of Local Sponsorship in Dubai
There are two types of local sponsorship in Dubai: Individual Sponsorship and Corporate Sponsorship.
Individual sponsorship involves the UAE national acting as the local sponsor for one company only. The sponsor will hold 51% of the company’s shares, while the remaining 49% will be owned by the foreign investor.
Corporate sponsorship involves a local company sponsoring a foreign investor. In this case, the local company will hold 51% of the shares, while the remaining 49% will be owned by the foreign investor.
Benefits of Local Sponsorship in Dubai
Having a local sponsor in Dubai comes with several benefits, including:
- Legal Protection: With a local sponsor, your company is legally protected from any legal consequences that may arise.
- Business Growth: A local sponsor can provide your company with valuable connections, experience, and knowledge of the local market, which can help your business grow and expand.
- Business Continuity: In case of any unforeseen circumstances, such as the death of the foreign investor, having a local sponsor ensures that the business will continue to operate.
How to Find a Local Sponsor in Dubai
Here are some steps to follow to find the best local sponsor in Dubai:
Step 1: Understand Your Business Needs
Before you start looking for a local sponsor, it’s crucial to understand your business needs. Determine what type of business you’re starting, the capital you’re investing, and the industry you’re operating in. Knowing your business needs will help you find a local sponsor who is a good fit for your business.
Step 2: Ask for Recommendations
Ask for recommendations from other foreign investors who have already established their businesses in Dubai. They can provide valuable insights into the local business environment and recommend trustworthy local sponsors.
Step 3: Use Business Directories
Check business directories such as the Dubai Chamber of Commerce and Industry, Dubai Yellow Pages, and Dubai Business Pages for potential local sponsors. These directories can help you identify potential sponsors and contact them for further discussions.
Step 4: Seek Professional Help
Consult with a local business setup consultant or a legal expert who can guide you through the process of finding a local sponsor. They have the necessary experience and knowledge of the local business environment and can help you find a reliable and trustworthy local sponsor.
Local sponsorship is an essential requirement for foreign investors seeking to do business in Dubai. It provides legal protection, business growth, and continuity. Finding a reliable local sponsor is crucial for your business’s success. By following the tips mentioned in this article, you can find a trustworthy local sponsor and ensure the smooth functioning of your business in Dubai.