LOCAL SPONSOR

Understanding Local Sponsorships for Businesses in Dubai with Ahlam Documents

Navigating the legalities of starting a business in Dubai can be complex, especially when it comes to local sponsorships. Ahlam Documents provides clear explanations and simplifies the process for companies seeking a local sponsor in Dubai.

Do You Need a Local Sponsor in Dubai?

The requirement for a local sponsor in Dubai depends on the type of business activity you plan to conduct. Here’s a general breakdown:

• Mainland Companies: For most businesses operating in Dubai’s mainland, a local sponsor (typically a UAE national) is mandatory. The local sponsor traditionally holds a majority share (51%) of the company, while the foreign investor retains a minority share (49%). However, profit-sharing agreements can be established to ensure a fair distribution of income.
• Free Zones: Free zones in Dubai offer greater flexibility regarding local sponsorship. Some free zones allow for 100% foreign ownership, eliminating the need for a local sponsor.

The specific requirements for local sponsorships can vary depending on your business activity and chosen location. Our team of experts at Ahlam Documents can provide you with up-to-date information and guidance.

What Does a Local Sponsor Do?

The role of a local sponsor can be summarized as follows:

• Acts as a legal representative: The local sponsor acts as the company’s legal representative in dealings with government entities.
• Facilitates business setup: The sponsor assists with obtaining necessary licenses and permits for the company’s operation.
• Provides local knowledge: A local sponsor can offer valuable insights and connections within the Dubai business landscape.

Alternatives to Traditional Local Sponsorships

While traditional local sponsorships are still prevalent, alternative options are emerging in Dubai:

• Corporate Sponsors: Some companies in Dubai can act as corporate sponsors, fulfilling the legal sponsorship role for foreign investors.
• Free Zone Sponsorship: As mentioned earlier, free zones offer opportunities for 100% foreign ownership, eliminating the need for a local sponsor.

Finding the Right Local Sponsor Solution

The best local sponsorship solution for your business depends on your specific needs and goals. Ahlam Documents can help you navigate your options and make an informed decision:

• Expert Consultation: We will discuss your business plans and recommend the most suitable local sponsorship solution for your situation.
• Sponsor Matching: If a local sponsor is required, we can connect you with reputable and reliable local sponsors who align with your business goals.
• Agreement Drafting: Our legal team can assist in drafting clear and comprehensive sponsorship agreements that protect your interests.

Focus on Your Business Growth, We’ll Handle the Sponsorship

The complexities of local sponsorships shouldn’t hinder your business aspirations in Dubai. Let Ahlam Documents guide you through the process, ensuring a smooth and successful start for your company. Contact us today to discuss your local sponsorship needs and explore the best options for your business.