Local Sponsor in Dubai
UAE Local Service Agents
Finding a local sponsor who is reliable and promotes your business outlook is the most critical part of starting up a company, especially if you are new to the country. You can also call them as local service agents. If you are looking for a business setup in Dubai or elsewhere in the different emirates, start the process by looking for UAE local service agent. This is mainly because it would not only screw up your business if you end up with the wrong sponsor but also create difficulties concerning regulating your business.
Benefits of Local Sponsors in Dubai
The local sponsor is a valuable asset for companies, and the appropriate business relationship can also help a company achieve varied and broad levels of growth. In Dubai, some significant advantages of a local service agent or sponsor are:
- Business Development across their network
- Abilities to bid for key tenders or company deals
- Networking at high levels with prominent figures
- First-hand and authentic source of data for important government news
- Access to key meetings, workshops, conferences (sometimes on priority)
- Power to join major business councils or business associations.
- More exposure through a local sponsor in the media
- Your organization builds trust in the minds of other local companies.
- Experience and expertise in the local market
Why Hire A Local Sponsor?
Local Sponsor is a general term used in the UAE to refer to the local service agents who have a major role only in the sole professional establishment or civil partnership professional company in the UAE mainland business setup. The local service agent must be an Emirati person (UAE national) or a company owned by Emirati nationals with at least 51% of its shares, while the owner will hold 49% of the claims. The first thought of turning over half of your company is daunting, and in some situations, you may not need a sponsor at all. That is why an entrepreneur seeking to develop his business in Dubai must study and understand exactly what needs to be done from a legal perspective, whether or not his business requires local sponsorship and what other options are open.
In most cases, the sponsor has no involvement in day-to-day business operations. On behalf of the corporation, they must link with the government bodies to facilitate the business process from a government perspective (immigration, visas, labor, etc.). Given that foreign ownership in such a company does not exceed 49%, profits do not need to be divided along these lines. In reality, in most cases, a fixed fee or a minimum profit share is charged annually to the sponsor, decided upon when the company is set up.
How Can Bytes Help You?
You need to appoint a local sponsor or service agent, depending on your company’s landscape. We at Bytes can guide and take you in the right direction as we have experience in the field of business setup in Dubai. We can work with you to comprehend your business activities or whether you are qualified to retain 100 percent ownership. We can also help you find a local service agent if it’s required.
Get in touch with us today to know more about our services or sponsor fees in Dubai!