Incorporating and entity in the non-free zone requires a UAE national as a partner or as a service agent. This depends on the legal structure and license activity. Local sponsor is a mandatory requirement if a foreign investor aims to form his business in the UAE mainland. The sponsor has to be a UAE national. If the business is to be set up in the UAE mainland, then the 51% of business will be owned by the local sponsor.

But this is not in the case with free zones. Free zone companies can be 100% owned by foreign nationals.

Anyone willing to start a business in Dubai or anywhere in UAE, initiates the process of setting their company in the UAE by looking for UAE local sponsorship.

‘Local sponsor’ is a generic term used in the UAE referring to local service agents and nominee shareholders (sleeping partners) in mainland companies with foreign investment. A sponsor has to be an Emirati (UAE national) with a family membership card.

Also, business setup is possible in Dubai Mainland without local sponsor by forming civil/professional services company. But this still necessitates a Dubai local agent.

The appointed local sponsor takes no role in the daily operations of the company’s business. They are responsible for liaising with the necessary government department on behalf of the organization in the obtaining of visas, immigration approvals and other licenses.

Getting your company registered in Dubai or UAE can be a complex process at the best of times. Add to that the additional difficulties of setting up in a foreign country and the entire process can feel like unachievable. However, none of these factors pulls back foreign entrepreneurs and investors when it comes to owning a business in the UAE. And nor should it.

True, getting a business up and running anywhere takes effort, but as long as you go in with the accurate knowledge and professional advice, there is no reason why these complexities cannot be overcome.

PMC Solutions DMCC helps you register your company in Dubai or UAE by providing you with trusted Dubai Local Sponsors (UAE National Partner).

PMC Solutions DMCC is a Corporate Service Provider specialized in designing bespoke solutions for Business Setup, and Family Residency for foreign and local investors, willing to establish and grow their businesses in the entire UAE.

PMC Solutions has been established to provide complete company incorporation, administration and management services in all major jurisdictions in the UAE where it is pioneering the concept of Free zone and Offshore Incorporation.

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