Local Sponsorship Services in Dubai, UAE
Securing a trustworthy local sponsor in Dubai can be challenging for many entrepreneurs. At Sohi Pro Services, we simplify the process by helping you connect with reliable and credible local sponsors across all emirates of the UAE to ensure smooth business setup and legal compliance.
Local Sponsorship in Dubai, UAE — Everything You Need to Know
Starting a business in a foreign country like the UAE can be complex—especially when setting up on the mainland. Despite Dubai’s global appeal and business-friendly environment, one key legal requirement stands out: foreign investors must partner with a local sponsor who holds 51% of the company’s shares (for commercial and industrial licenses). At Sohi Services, we help you navigate this crucial step with ease and transparency.
What Is a Local Sponsor?
A local sponsor is a UAE national or a corporate entity that fulfills the UAE’s legal requirement for mainland business ownership. While they officially hold 51% of the company shares, operational control typically remains with the foreign investor through binding legal agreements. The local sponsor receives an agreed-upon annual fee in exchange for fulfilling this legal formality.
Types of Local Sponsorship in the UAE
1. Corporate Sponsorship
In this structure, a UAE-based company acts as your local sponsor, holding 51% of the shares. This option is ideal for investors looking for greater contractual clarity and minimal interference in daily operations.
2. Individual Sponsorship
An Emirati individual serves as the sponsor and legally owns 51% of the company. This is common for commercial ventures and requires a well-drafted agreement to protect your interests.
3. Local Service Agent (LSA)
Required for professional service companies, the LSA doesn’t hold any shares but assists with government-related processes. This model allows foreign professionals to retain full ownership while complying with local regulations.
Why Do You Need a Local Sponsor in Dubai?
Legal Compliance: A sponsor is mandatory for setting up a mainland company under UAE law.
Full Profit Retention: Despite the 51% ownership rule, investors can retain 100% of profits via legal agreements.
Business Expansion: Sponsorship enables you to trade across the UAE, open branches, and work with government clients.
Visa Eligibility: Gain eligibility for investor visas, including family sponsorship.
Responsibilities of a Local Sponsor
Though not involved in day-to-day management, sponsors may assist with:
Cancelling visas and labor cards
Bank account closures
Legal formalities and document translation
Representing the business in official matters
Finding a Reliable Local Sponsor with Sohi Pro Services
Choosing the right sponsor is critical. At Sohi Services, we help you:
Conduct background checks to verify credibility
Choose between individual and corporate sponsors based on your business model
Draft transparent, legally vetted agreements
Simplify the entire sponsorship process with expert guidance
Corporate Sponsorship vs. Individual Sponsorship
Corporate sponsorship is often preferred for its transparency, professional approach, and comprehensive contracts. It ensures:
Zero interference in operations
Full financial rights retention
Legally binding protection for foreign investors
Which Businesses Require a Local Sponsor?
You’ll need a local sponsor if you’re setting up:
A mainland LLC
A branch of a foreign company
A professionally licensed entity (with a local service agent)
A civil company
Why Choose Sohi Pro Services?
At Sohi Services, we specialize in connecting foreign investors with trustworthy local sponsors and service agents across the UAE. Our team ensures your setup complies with local laws while giving you complete operational freedom.
Ready to Set Up Your Business in Dubai?
Let Sohi Services simplify the sponsorship process. Reach out to us today for expert guidance and end-to-end support in setting up your business in the UAE mainland.
Sohi Pro Services is your trusted partner for business setup in the UAE. We specialize in company formation, licensing, and consultancy across all major free zones and mainland jurisdictions. Let us simplify your journey to success in the UAE.
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