Planning to establish your business in the vibrant landscape of the UAE? One key element you can’t overlook is the necessity of a local sponsor. This indispensable figure not only supports your business endeavors but also plays a crucial role in ensuring compliance with the UAE Commercial Companies Law.

Understanding Local Sponsorship:

A local sponsor is a UAE national with whom you form a partnership to initiate your business. This collaboration is mandated by the UAE law, particularly for the establishment of Limited Liability Companies (LLC). The involvement of a local sponsor is a prerequisite to unlocking the benefits of setting up an LLC company.

Local Sponsor Fee in UAE:

Securing a local sponsor involves a financial aspect, with the local sponsor fee typically amounting to AED 8,000 per year. Before finalizing this fee, several factors should be considered, including the nature of your business, the local sponsor’s involvement in legal formalities, participation in day-to-day activities, and the agreed-upon partnership tenure.

Why a Local Sponsor is Essential:

The importance of a local sponsor stems from its pivotal role in navigating the regulatory landscape of the UAE. The UAE Commercial Companies Law requires anyone establishing an LLC company to have a partnership with a UAE national. This is particularly crucial for businesses engaged in general trading, contracting, real estate, advertising, industrial and manufacturing licenses, technical services, textile businesses, fuel and petrochemical industries, electronic industries, cosmetics and perfume businesses, jewelry businesses, and more.