Corporate Sponsorship- A Must Need for Business Incorporation in UAE

by Zaara 25, Feb 2019

The United Arab Emirates has been transforming itself into a one-stop business destination. Ranging from travel and tourism, oil, hospitality, to freelancing business, it has covered all. According to Oxford Economics, the non-oil sector in UAE is expected to grow by 3.6%, whereas the oil sector is expected to increase by 1.3% by the end of 2019. On the overall GDP calculation, the nation is expected to grow by 3%.

Along with time, the business setup process in UAE became easier as compared to the earlier methods, and also provides options such as mainland, free zone and offshore. Mostly a foreign investor prefers mainland for an LLP business. At this point, he needs to understand the essentials required. One such mandate turns out to be corporate sponsorship. This guide will give you a clear understanding of what corporate sponsorship is all about and how your business can avail its benefits. Let’s dive in.

What is a Corporate Sponsorship?

According to the UAE Commercial Company Law, a local sponsor is one of the pre-requisites that a foreign investor needs to serve while establishing an LLC company in Dubai. A local sponsor in Dubai needs to individually hold 51% shares of the company, whereas the foreign expat is expected to keep 49%.

Now, trusting an unknown person and handing over the majority shares sounds scary right! At any point in time, he or she can overrule your business since he/she holds 51% of the company shares. To sort this issue, the concept of local sponsorship or corporate sponsorship came into existence that turns out to be way reliable and safe. Now let’s understand the next phase.

Why does a Foreign Expat need Corporate Sponsorship?

As you have already got an idea that you need to include an Emirati national to start your business in UAE, choosing an unknown individual may not be a feasible option. Another best alternative that you can accept by being a business owner is to get in touch with a business entity who would act as an Emirati local, holding 51% shares more securely and professionally.

In this process, the Emirati national doesn’t need to have any experience in that business. With the help of corporate sponsorship, a foreign expat can carry out the business decisions in a more relaxed way. To understand how it will benefit your business, let’s have a glance at the benefits.

The Benefit of Availing Corporate Sponsorship Services in Dubai

Some of the benefits that you would derive by availing the corporate sponsorship in Dubai are:

  • Complete control of the company’s decisions
  • Foreign owner retains 100% financial benefits
  • Well-drafted documents from legal experts are provided
  • Rights and obligations of the company get secured
  • Company formation process in UAE gets speed up
  • The process is carried out in a professional manner
  • The corporate sponsors don’t get involved in daily business processes

By now you have got a clear idea about what the term ’Corporate Sponsorship’ actually means. The benefits mentioned above can help you to focus more on the business needs rather than worrying about share-holding. Finding a sponsor in Dubai is a tedious task. It is highly recommended to approach business consultant and avail the corporate sponsorship service since professionals are well-versed with the legal terms of Emirates. To bring an end to your worry, we have come up with a bundle of Corporate Sponsorship services. Do have a look.

Why Us?

Being as one of the top business consultants in UAE, we at Commitbiz are dedicated to providing the best service to our clients. Our primary objective is to provide a 100% assistance as well as to protect your ownership rights. By partnering with us, you can experience:

  • A well-built business community
  • Professionalism and dedication while availing the service
  • Delivery of High-Quality advice
  • Advice and implementation of business core services like accounting, visa, tax.

We’ll take the utmost care in safeguarding your financial rights. If you are looking for UAE local sponsorship, or hold any query, do contact us-we’d be glad to assist!


How to find corporate sponsorship in Dubai, UAE?

For foreign businesses looking for corporate sponsorship, reaching out to an experienced business setup company in UAE is always recommended.

Since they’re well versed with the market over there, they’ll be better equipped to find the best possible corporate sponsor for your business.

Commitbiz Management Consultants has 24 years of a proven track record for helping business people like you set up your branch/ office/ base in UAE.

If you want to start your business in UAE, contact Commitbiz now for an affordable, time-saving & hassle-free process for your business setup in UAE.

Which is more affordable - A local sponsor or a Corporate sponsor in UAE?

Local sponsor is more affordable. 

However, it does not offer the same security, smooth process & ownership over your business as a corporate sponsor.

What happens when a Local sponsor for a business in UAE passes away?

When the local sponsor dies or decides to retire, their shares are transferred to their heir. The heir will be appointed through a succession planning.

Why is a Corporate sponsor legally safer compared to a Local sponsor?

Corporate sponsors will always function according to the contracts drafted by the First Tier Legal counsel, because of which you and your shareholders are always safe.

Also doing business with someone you don’t know is super risky, that’s why local sponsors aren’t preferred by most businesses.