Dubai is a dream destination for entrepreneurs to launch their businesses. It offers an excellent opportunity for investors to grow their firm as it has a big market and business-friendly regime.

People coming to Dubai from other countries need a local sponsorship to get started. You can get a local sponsor by contacting reliable business setup companies in Dubai.

The first step to starting any business in Dubai is to find a local partner. They invest in the company as per rules but usually remain inactive in its day-to-day business operations.

Local Sponsorship in Dubai: Meaning 

 Under the Companies Law of Dubai, every foreign investor must have a service agent or local partner. A local sponsor should be a UAE-based citizen having a valid passport.

As a foreign individual, you can’t float your enterprise in Dubai without a partner. The involvement of a local sponsor is mandatory.

They will own the majority of your company shares or equities to the extent of 51% but rules can be modified with an internal agreement.

The Context of Business Sponsorship 

 As per the company rules and regulations, a local business sponsor should own 51% of the share in your company or firm. But you can get in touch with a professional and reliable business consultant to ink a deal through which both parties can opt for a mutual agreement, which suggests otherwise.

Such an agreement is necessary to understand your role and activity. At the same time, it also specifies the types of work that your business sponsor will perform in your company.

In general cases, a business sponsor’s role is limited to the extent of the government’s documentation process only. The ownership, profits, ROI, and voting rights are retained by the firm owner.

Benefits of A Local Business Partner In Dubai

 Get eligible for various grants and government subsidies from the Dubai government.

  • Make the best use of their network to publicise your business.
  • They will keep you posted about necessary updates and new business rules and regulations as framed by the government from time to time.
  • Having a local sponsor makes your business more credible.
  • You can participate in government tenders and bids.
  • A local business partner will inform you about trade expos and industrial workshops where you can go and learn new information relating to trade and commerce in Dubai.

In Conclusion

It’s a good idea to have a local business partner standing by your side. You can treat them as your advisor to get vital information relating to the investment climate in Dubai. Based on their suggestion, you can even slightly change the modus operandi of your business. For all meetings with the government officials, take your business partner with you. They have sound knowledge about the industry, trade, and commerce in the UAE.

If you are searching for a reliable local sponsor, contact Emirabiz. It is one of the most popular business setup companies in Dubai to help foreign investors establish their business in the UAE.