According to Federal Law No. 2 of 2015 on Commercial Companies, in order to establish a firm in the UAE Mainland, a foreigner must appoint a UAE national as their local agent. An individual or corporate entity from the UAE may be a local sponsor in Dubai. However, selecting the appropriate sponsor is vital to the success of your company. For this reason, we take into account a number of factors before recommending or providing our clients with a local sponsor in the UAE, saving time and avoiding needless back and forth.
A memorandum of understanding is also given to the investor to protect the profit and shares of the company as our sponsor transfers/waives all the rights of the company to the foreign investor against the fixed stipend. At Eidad & Enjaz Sponsorship, our customers enjoy complete freedom from the UAE national sponsor for business in Dubai because we give the Foreign national a special Power of Attorney to remove the UAE national at any time from the investor's company.
Is it possible to set up a business without having a UAE citizen sponsor it?
No, having a UAE national as a local agent for the business is required in Dubai Mainland. UAE residents will own a minimum of 51% of the company's share capital if the customer chooses the LLC form. UAE nationals will only serve as the company's agent if the establishment has a professional license and a single location. The investor also bears in mind that even though it is stated in the MOA that the UAE national owns 51% of the company, all relevant documents, such as the Memorandum of Understanding, Trust Deed, Proxy Agreement, and Nominee Shareholding Agreement, will be provided to the foreign national in order to protect his or her ownership interest in the business.
Who are the UAE-Local sponsors?
A local sponsor is any UAE national or citizen who works as a service agent or 51% shareholder of your firm to enable a company setup in Dubai.
What is the annual fee for a local UAE sponsor?
Based on the type of business a foreign expat who wants to establish a Dubai firm intends to engage in, a UAE person might anticipate paying a certain amount annually. However, the starting salary for a local sponsor in the UAE is AED 8000 per year on average. If you want to choose a trustworthy and experienced UAE national for company registration in Dubai, Eidad & Enjaz can assist you.
Do you offer agreements that protect investors?
Yes, we provide an MOU/Side Agreement or Trust Agreement to assist international investors in safeguarding their shares and firm profits.
What are my options for finding a sponsor for my business venture?
Whether you need a sole establishment, partnership firm, or foreign company branch license in the UAE, Eidad & Enjaz Business Consultancy LLC may serve as your local UAE sponsor for an LLC company or your local UAE agent for a professional license.
Can I get my money back for local sponsorship costs I've already paid to a UAE citizen?
Yes, the full sum paid may be refunded if the local sponsor does not sign the memorandum of association/service agent agreement and have it notarized by a public notary.
What does Dubai corporate sponsorship for UAE company establishment mean?
Corporate sponsorship is another possibility if you are worried about a relatively unknown person having a foot in your company's door. Although you will be sponsored by a business rather than an individual, the procedure is very similar. This will give you more security because an organization sponsor is more unlikely to present a risk than an individual. Additionally, it facilitates the resolution of issues like shareholder succession within the authority of company law and permits the creation of a stronger governance framework to protect foreign investment. In most cases, a dedicated team will also be given to you to help with visa and license renewals as well as any other ad hoc support needed to run the business.
Does setting up a free zone company require a local sponsor?
No, a local sponsor is not necessary to establish a free-zone company. An overseas shareholder(s) may possess 100% of a free zone corporation.