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Arranging Trusted Local Sponsor/Local Agent for Companies

The involvement of local sponsorship in the UAE is mandatory to the formation of mainland firms in the UAE as stated by the UAE commercial companies’ law and UAE civil law. Local sponsors or Nominee shareholders and local service agents must be a UAE national and will be paid an annual fee for the services they render.

For the establishment of mainland LLC by foreign investors, it is mandatory by the government that the local sponsors/ local partner own a minimum  51% of the company shares. The formations of professional and representative offices, on the other hand, do not require local partners but required local service agent for their establishment in the UAE. They can be 100% owned by foreign shareholders/Investors 

The appointed local sponsor in the UAE takes no role in the day-to-day running of the company’s business. They are responsible for liaising with the necessary government department on behalf of their organization in the obtaining of visas, immigration approvals etc…

Finding a local sponsor in the UAE that fits the required qualifications needed might seem quite a daunting task for foreign businessmen. Local sponsorship in the UAE is nevertheless a mandatory requirement for business formation. The local sponsors (Nominee Shareholders) in UAE can have 51% only if the legal form is a limited liability company (LLC), for other legal forms of entities, the local service agent will have 0% shares of the company.