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shaking hands with a local sponsor

Local Sponsors in Dubai, UAE

Role of Local sponsor
Foreign investors must understand the importance of the role and functions of local Dubai sponsor. One of the main challenges to start and operate a business in Dubai mainland is to find a local sponsor or service agent who is going to vouch for your trustworthiness in good faith before the competent authorities to let you in the country for the purpose of business, employment, or visit.
The arrangement of a local sponsorship is a compulsory condition for a foreign investor who wishes to start up a business venture or make an investment in Dubai mainland. The mainland Dubai strictly adheres to the UAE government sanctioned shareholding structure which is 51% local share and 49% expat share. A foreign person must find a local sponsor, a UAE national, who is going to hold 51% of the company’s shares. Mostly, local sponsors play the role of a silent or dormant business partners and they do not take part in the administration or management of the business operations and are happy to receive a yearly income from the foreign investor according to the rules of profit-sharing laid down and formally agreed upon in the contract. However, foreign investors sometimes do make some agreements with local sponsors other than the one already inked in black and white but such agreements are not considered as admissible evidence should there arise a need to move to a court for the settlement of some dispute between the local sponsor and foreign investor. The profit and loss sharing ratio can be settled in the contract which does not have to correspond to the ratio of which capital is invested by the local sponsor and foreign investor.
The 51% sharing requirement doesn’t apply to companies or businesses set up in the free zones. 100% ownership is given to the investor.
Reliable Business Sponsor

Finding the correct local Emirati sponsor can be difficult. Start your business with Rujia Business Setup as we offer you reliable business sponsorship services in the UAE. We sponsor your company as an inactive partner in your business for an annual fee. Rujia Business Setup offer you great prices on your business sponsorship. We also have the right connections with the government agencies to make the paperwork convenient and swift.

With Rujia sponsorship services avail complete support through the procedures of your company formation. Be it governmental permits, approvals for the Department of Economic Development or any other submissions – we will get it done for you.

Rujia Business Setup drafts an ‘Investor Right Protection Contract’ that provides 100% operational ownership of the company. We have a legal team to draft the agreement and offer complete transparency in the contract.

To start a business, you need to draft & attest the power of attorney, agreement of incorporation, purchase agreement, company registration documents, etc. Rujia drafts a power of attorney that allows you to change the local sponsor. Our side-and-service agreement categorically state that our consultancy firm only assists the investor in company incorporation in UAE.

Our investor protection contracts are valid in all UAE courts and we offer all these services across the Emirates. Rujia Business Setup only offers practical and legal solutions to ensure you have a fruitful company formation in the UAE.
To read a pre-drafted investor right protection contract contact Rujia Business Setup