THINGS TO KNOW ABOUT A LOCAL SPONSOR IN UAE
UAE is one of the top growing business hubs in the business world. Therefore investors from different countries to the UAE, are increasing day-by-day. Many factors become Dubai the business hub. Some of them are the easy business setup procedure, low tax, standard of living, support to the startups, lively environment, etc..
The very basic and important step in business setup in Dubai, UAE is the local sponsor. There are three types of licensing option for a business setup.
If you want to own 100% of the ownership of your business then the licensing option is free zone license. But if you want to own your company in UAE mainland then the local sponsor is the mandatory factor. To open a business in Dubai UAE mainland the sponsor own 51% of the whole share and the rest 49% will be the foreign ownership. A local sponsor is paid a lump sum fee for every year (annually).To get a reliable local sponsor for your business is an important factor. But there will be no particular role for the local sponsor in your business, the sponsor should be a silent partner in your business activities. But to open a business in UAE without the support of a local sponsor is impossible
What and who is a local sponsor or an emirate?
Local sponsor is the term used for a UAE national which is an Emirati.to be a local sponsor he or she should have a family membership card called the “Gincia”.
What are the types of local sponsor? (3 types)
1. A local service agent
2. A corporate local sponsor
3. An Individual local sponsor
To get a reliable local sponsor for a business is an important factor.so there are many fact’s that should consider before choosing a local sponsor for a business. Getting A good sponsor for a business is one among the first step for the success into your business.
For more queries related to a local sponsor in Dubai UAE contact our Business Setup Consultant.