Local sponsor arrangement

Local-sponsor-arrangement

What is a Local Sponsor in UAE?

A local sponsor is a corporate entity or individual who is a UAE national and takes the role of a partner or agent for foreign investors looking to start businesses in the UAE mainland. According to UAE legal regulations, specific business types need a minimum of 51% local ownership by an Emirati. The investor, who is foreign, can hold the remaining 49%.

This makes it possible for foreign investors to operate businesses with existing sponsors without practically controlling them. In case of contracts, a sponsor maintains total interference in a business's daily operations.

The Role of Local Sponsorship

Red Tape Authority:

Guarantees that your intended business is set up as per the applicable UAE mainland laws and regulatory bodies. 

Geographic Flexibility

Unlike free zone companies, companies registered in the mainland have unrestricted operational and locational freedom

Easier Access to Finance

Registered businesses are favored by banks and other financial institutions. As such, they are easier to work with.

Contractual Access

Some sectors and contracts are limited to non-foreign funded institutions.  

Efficiency

A local sponsor streamlines processes such as license issuance, visa clearances, and numerous other approvals. 

Reputation

Without proof of local presence accessible to consumers, investors, and banks, no brand can claim to be trusted or credible.  

Who Needs a Local Sponsor?

It is a prerequisite for foreign stakeholders who wish to:

  • Register a commercial, industrial, or trading mainland company.
  • Open a branch or representative office of a foreign company.
  • Engage in activities or operate businesses that do not fall within the free zone regions or which permit only partial foreign ownership.  
  • Participate in local government auctions as a primary contractor for tenders requiring a local partner. 

Despite some more recent changes to the UAE policies offering 100% foreign ownership in certain areas, most industries continue to impose local sponsorship constraints based on the nature of the business and the emirate. 

Unlike others, Gulf Integrity simplifies the search for reliable local sponsors by providing plenty of guidance and legal support, ensuring that operational control remains with the business.

The Local Sponsorship We Offer Include:

  • Access to Reliable Emirati Sponsors: We put you in touch with vetted UAE nationals who grant you professional autonomy and work with industry delineation protocols. 
  • Bound Side Agreements Tailored to Your Needs: Legal agreements we draft include MOUs (Memorandum of Understanding) and service contracts which safely address your sponsor's obligations and outline your prerogatives.
  • Set Fee Distribution: Local sponsor services are charged at a fixed price with no surreptitious expenses. Packages are customizable from scalable among SMEs (Small and Medium Enterprises) and startups.
  • Complete Document Handling Assistance: We do everything from notarizing and attestations to acquiring government approvals and registering the trade license.
  • Proactive Managing Sponsors Relation: We mediate dealings with the sponsor to make certain you retain control of the relationship in the long run.
  • Post-Installation Compliance Assistance: Consistent support for license renewals, visas managed services, governance, and ensuring business intelligence permits is complimented the signatory entities at all times.

Their use offers significant support to new businesses with tailored offers Gulf’s proven networking makes them stand out in dealing with foreign local sponsorships and business setups.

Customers prefer us due to having:

  •   Irrefutable evidence all sponsorships have been mitigated by threats.
  • End-to-end advisory and compliance supervision ensures ease of doing business. 
  • Every operational step promises unwavering integrity.

As a business, we care for your objectives as if they were our own.