Difference Between Dubai Local, Corporate Sponsor & Local Service Agent

Sponsorship Opportunities for a business startup in Dubai, UAE

Despite a business hub to commercial, industrial, and trading sectors, the uphill battle for newbies in UAE is to find a local and corporate sponsorship. Especially, when entrepreneurs are willing to operate a business in Dubai Mainland, where an ex-pat can only retain a share of 49% and the rest 51% goes to a local sponsor. The concept is different for free trade zones, where it allows 100 percent foreign ownership according to new legislation. There are three types of sponsorships for company setup in Dubai Mainland, including Local Sponsors Corporate Sponsors, and Local Service Agent. Here we are going to tell you the pros and cons of UAE Local Sponsors Corporate Sponsors and Local Service Agent for company setup in Dubai.

Individual Sponsorship in general terms – Local Sponsor in Dubai:

Local sponsorship is much required when you are planning to set up a business outside the free zone in UAE. Business activities like trading or manufacturing unit and a limited liability company work well with such sponsorship. To choose an individual or local sponsor, you need to be cogitative and wise because your local partner takes an enormous share of your company. Only a trusted partner or an Emirati national with good repute can help you in the long run, then he/she may be a professional, a UAE government employee, or a reputed businessman.

An Emirati partner or local sponsor could retain a 51% share in this type of sponsorship. UAE Local sponsor will not ask you for any share in company profit as you just need to pay him his annual fee.

Knock-out benefits of individual sponsorship include:
  1. Inexpensive and affordable,
  2. Shrink paperwork with the help of a local sponsor, and
  3. Open doors for new businesses through the association of local partners with foreign ex-pats.
Think on lose grounds before taking a plunge:
  1. Sometimes operation efficiency is affected or has a negative influence due to Emirati’s random travel plans.
  2. Premature retirement or the unfortunate demise of a local sponsor leads to the shifting of legal heirs and causes severe delays in the process.

Ideate your thoughts before opting for corporate sponsorship in Dubai for starting your own business:

When rights are compared, corporate sponsorship is much like an individual sponsorship; however, differs on certain norms. Be assured to get a share of 49% ownership especially when you plan to establish a mainland office; however, 51% ownership goes to corporate sponsors.

Corporate sponsorship is beneficial due to following reasons:
  1. Expat holds all advantages with 100% financial benefits,
  2. No intervening from a local partner on day-to-day company activities,
  3. Secured legal and regulatory agreements,
  4. Quick documentation process, and
  5. Succession planning is not required.
The sponsorship has some tribulations as well:
  1. One of the expensive sponsorships,
  2. Add-On Paperwork

Get Across Local Service agent in UAE

Acting as a company representative, a local service agent is an Emirati national who helps sole proprietorship, civil business, or a branch office in setting up their business activity. Unlike individual sponsorship, the local service agent works on agreed annual fees, settled as a commercial contract for their services, and does not attain any profit share from the company or branch office. The Local Service Agent is responsible to make all arrangements and meetings with regulatory bodies and government officials on the company’s behalf. He’s the one facilitating renewal licenses off the hook.

Reify Benefits of having local service agent in Dubai
  1. Easily available online,
  2. Speed-up the process, kickback and saves time,
  3. Help in document clearance and renewals, PRO services in Dubai,  and
  4. No undertaking on any financial obligations.
Reduce doubts
  1. Finding the right and qualified local agent is quite challenging,
  2. Sometimes additional costs are hush-hush concerns in the sponsorship fee.
  3. Sudden absconding without leaving a trace.
  4. Pending signatures on paperwork due to long absence.

The sponsorship choices rely on the Incorporated and the Individuals comfort zone. Where corporate sponsorship for company setup in Dubai provides financial independence and a sense of security, and individual sponsorship is affordable and opens endless business opportunities for newfangled set-ups. Set up an appointment with a Business Link expert. To know more about the ropes of UAE company formation sponsorship and reap its benefits.

Business Link is one of the most prominent business consultancies in UAE to help you to find a suitable local sponsor or sleeping partner for your business activities. Also, we are one of the trusted corporate sponsors in Dubai, providing corporate sponsorship for a new business startup in the UAE.

For more information contact us at 00 971 556070118 or email us at info@businesslinkuae.com