For many years, Dubai has been a hospitable and appealing business environment for businesses from all over the world. Dubai is well-known as a business innovation hub, with a stable, strategic position, robust transportation, commercial infrastructure, and regulations that encourage tax-free trade and inward foreign investments. However, if you want to start a business in Dubai, the most populous city in the United Arab Emirates, you’ll need a dependable sponsor. There are several reasons why you need local sponsorship in Dubai, which is reliable for your business, beginning with the fact that it is mandatory to have one when doing business on the mainland.
What is Local Sponsorship in Dubai?
According to the UAE Commercial Companies Law, setting up a limited liability corporation requires you to have a business partner. Consequently, local sponsorship in the UAE entails forming a partnership with a UAE national. Any foreign entrepreneur who wants to start a firm in the UAE can do so in a free zone and keep 100 percent ownership, in which case the free zone will restrict your business activities geographically. The second option is on the mainland and hands up a 51 percent stake to a local sponsor with more commercial freedom.
How to Find a Reliable Local Sponsor or LSA?
Depending on the business activity, numerous individual sponsors, corporate sponsors, and local service agents are available, offering supportive services to companies of every scale and size for Dubai company formation and creation. The following measures can assist you in identifying a reliable local or corporate sponsorship in Dubai for your company formation:
- Local company sponsors in Dubai must be dependable and trustworthy so that the foreign investor branch could rely on them.
- Individual or a corporation settled and located in the UAE can serve as the local sponsor for investors.
- Another approach for anybody to connect with a competent, dependable local sponsor or LSA is via networking. Owners of firms have a unique understanding of the business flow and operations. No one can entirely rely on a random individual ready to help with sponsorship.
- Local Sponsors also act as an intermediary marketing channel for the new firms in the UAE market. Join the local business community by partnering with local sponsoring corporations that can empower your business with local sponsorship marketing in Dubai, ranging from digital to analog tools that suit your brand.
- Another approach for anybody to connect with a competent, dependable local sponsor or LSA is via networking. Owners of firms have a unique understanding of the business flow and operations. No one can entirely rely on a random individual ready to help with sponsorship.
- Local sponsors or agents through consultancy companies such as corporate business enterprises (CBE) by The Corporate Group are suggested for they have a robust presence in the region, familiarity with local laws and requirements, and a dependable network of sponsors with whom they have worked extensively in the past. Such firms could offer your company diverse advanced local sponsorship opportunities and support.
- Prioritize local sponsors from key cities in the UAE, such as Dubai and Abu Dhabi. These metropolitans have major international firms and enterprises that like to invest. As a result, these areas are swamped with locals eager to serve as local sponsors and service agents.
- LSAs with a higher profile are also available, albeit at a higher cost.
However, because Dubai is the most popular choice, you may come across a plethora of local sponsorship opportunities when establishing up your firm. Thus, picking the proper one is critical since it establishes the groundwork for your on demand business and is a crucial step in the right direction.
On a Final Note:
A local sponsor can benefit and promote your commercial growth in the Middle East and will undoubtedly assist you in establishing your firm on the Dubai mainland. It’s vital to have faith and trust in the people you work with; thus, you need a reliable consultancy firm like The Corporate Group that can effortlessly get your local sponsorship in Dubai.
