How To Find A Reliable Local Sponsor In UAE

How to find a reliable local sponsor in UAE
2 mn read

Thousands of foreign investors have been flocking to the UAE over the decades to make use of the friendly economic environment, abundant opportunities and high living standards. Being the business hub of the Middle East, foreign investors consider this region as the base to enter the international market.

However, many the expat businessowners might not know of the UAE commercial rule that requires entering into a partnership with a local sponsor for setting up business in the UAE. Nevertheless, business consultants in UAE and companies offering business setup solutions, help these new entrepreneurs recognize the responsibilities as well as liabilities towards a local sponsor.

We need to understand who is a local sponsor? What are the formalities involved? And how do business consultants in the UAE, help entrepreneurs through the process?

Who is a local partner?

One of the main elements of starting a business in Dubai or anywhere across the UAE is to partner with a UAE national, also referred as local sponsor. As per the commercial law of the UAE, you have to mandatorily partner with a local to conduct business.

A UAE local sponsor refers to a national resident. A local resident of the UAE can become a local sponsor in any of the companies in the UAE. However, expats residing in the UAE with an UAE residency visa cannot become local sponsors.

The law says that anyone willing to start a business should partner with a UAE national. This UAE national will own 51% of the business. However, providing an ownership of 51% and finding a reliable partner may not seem feasible to most foreign investors who are new to the country.

However, to be inclined with the directives specified by the UAE Commercial Companies Law, UAE nationals also referred as UAE locals entering into a local sponsorship contract with a foreign investor will hold at least 51% of the shares in the company. This law is as stated and applied on the share capital of an LLC as per Article 10 (1) of the Federal Law No. 2 of 2015. This means that any company established shall have one or more UAE partners holding at least 51%.

Why should you find a local partner through a business consultancy?

Giving a majority of your company shares to someone you have only just come met is certainly difficult to decide. Thus, business setup consultants in Dubai offer local sponsorship in the most secure way. Business setup consultants become your local agent on your terms, which guarantees complete protection. Though this law is not restricted to all economic activities, is does apply to commercial and trading businesses. This way you do not only have yourself a reliable local partner, but also protect yourself through a contracted document which allows you to own 100% of the company.

Best corporate consultancy

Shuraa Business Setup can become your reliable local sponsor in the UAE. Shuraa will become your contracted local partner as per your terms and thus, to guarantee complete protection.

Just call on +971 44081900 or WhatsApp on +971 507775554.You may also email or log on to

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