Local Sponsors

If you are an outsider and would like to setup a business and or a company in Dubai you have to have a local sponsor or a service agent. Sponsor in United Arab Emirates are very important. You must have a sponsor even if you are visiting Dubai. A sponsor is a person or the company who take your responsibility in front of authorities to bring you in the country for the purpose of visit, employment, job or business.

As per law in United Arab Emirates when you are setting up your company in mainland you are required to have a local resident, a UAE national as your sponsor and he/she should hold the 51% of your business. Sponsor does not involve in company’s administration mostly and is agreed upon yearly charges according to the contract. There are some case where you can do side agreements with the local sponsor but those contracts would not be admissible in court should you ever have to go to the court for any settlement. The investor or the expat holds 49% of the shares but profits and loss can be divided regardless of the percentage of shares. Expat can have the power of attorney and work independently without being interfered in organizational matters.

This doesn’t apply to the companies and foreign businesses in free zone. In free zone the free zone acts as your local sponsor and does not own anything in your company. Free Zone Company can be fully owned by the investor.

Types of sponsors

A sponsor can be anyone, it can be a person or it can be UAE own company. Sponsorship in UAE can be divided up to three types.

Corporate sponsorship

This type of sponsorship works when a UAE own company holds the 51% of share of a foreign group or a company.

Individual sponsorship

This type of sponsorship works when a UAE national on individual level holds the 51% of a foreign company’s share or in a foreign business. That individual can be the businessman, government employee or professional.

Local Service agent

For all professional service licenses holding business you need a local service agent who does not hold any percentage from your business, infect, he or she will deal with the authorities and help you setup your business in returns of service fees.

Importance Of Sponsor In United Arab Emirates

Importance of sponsorship can be measured by the fact that government has mandated by law to have a sponsor for foreigners for dong any activity from entering in to the country to end the business in UAE.
  • For foreigners in UAE having a sponsor is required by law
  • Sponsor is required for entering in United Arab Emirates
  • If you are willing to visit United Arab Emirates you need sponsor
  • If you are trying to setup a business in United Arab Emirates you would need the help of local sponsor
  • If you are entering United Arab Emirates for employment purpose you are required to have a sponsor.
  • You need sponsor or if you are service professional as service agent who will take care of all the dealings with the local authorities


So whenever you are required any approvals for your business license or issuing with the visa, Dubai local sponsor should act as a role and will be a silent partner when you are looking for business setup. UAE21 is your one and only business partner providing you reliable local sponsorship options to all the clients who needs. We are giving flexible options for the some business activities by owning 100% ownership and the local will be act as local service agent(LSA) in to the license.

The sponsorship fees should be paid to the sponsor on a yearly basis with a side contract too without interfere with any of the shares. Whenever you required the services, he will act as your silent partner in your company. Still confused to get the local sponsorship options in UAE? Just contact us for more information about our Local Sponsor on +971 4 3960 997 / +97156 1000 111 / +56 5265 473 or Write to us about which type of business activity are you looking for at info@UAE-21.com.

Join hands with UAE 21 today and set up your business, risk-free at affordable costs!


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Additional Services

We are offering additional services which help you to setup your business completely on every steps

Bank Account Opening

Choosing which type of bank account to open and which UAE bank to choose. Our experts will help you out and we will find the best solution which will suit your business needs.

Business Consulting

We provide business consulting to help you ensure that your business venture in UAE turns into a profitable.

UAE Residence Visa

Need more attracting new employees to boost your business, but high employment cost turns you down? Don’t hold your business needs.

Second Citizenship

United Arab Emirates encourages foreign investors to come to the Emirates. However, choosing this country as a base for their business cannot obtain any permit that would allow to stay in the country for a lifelong period of time.

VAT Registration

If you haven’t registered your business or open a new VAT account under the latest VAT law observed in the United Arab Emirates, it’s high time you should consider its importance.

VAT Assistance

If you need to take care of taxes and VAT returns to avoid penalties and other consequences. Wouldn’t it be nice to have an expert by your side for essential tax consultancy and return filing support?

Pro Services

If you are looking to Outsource PRO Services in Dubai, UAE and for assisting all PRO and Government related works. Get in touch with us

Certificate Attestation & Translation

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