Why look for a Local partner for an LLC in Dubai

by Zaara 22, Aug 2015

Why look for a Local partner for an LLC in Dubai

If you nurture a desire of taking your business global, Dubai offers you a perfect launch pad. However, to make a beginning, you first need to explore the growth opportunities in Dubai. A setup in this bustling city can give your business the wings it needs to sprawl across the globe. But the law of the land mandates that to set up a locally registered LLC business you need to partner with an Emirati national and apportion the majority share i.e. 51% to the local. Choosing the right partner in an offshore land is always a tricky and risky decision.  In this blog, we would be talking about how to choose a local partner to set up an LLC in the UAE.

How to Set Up a Limited Liability Company in Dubai?


You must be knowing your business very well. But knowing it in context of an alien market is something different. Before you look for a partner, do your research to understand the market conditions for your business in Dubai and the competition around. Next, you need to compare it with your business plan to understand the prospects.  It’s only when you feel confident, that you can begin your search for the right partner.

Your local partner can be a company or an individual. Whoever you choose, they do not need to contribute to the start-up investment or participate financially at all. Whether you want your sponsor to be actively involved or silent, is a decision left to you. An actively-engaged sponsor will contribute to the setup and operational costs of the business; will partake in decision making and even day-to-day running of the business and, take their share of profits. Unlike an active partner, a silent partner can be remunerated in many other ways. Irrespective of whether you want your partner to be active or silent, he has to take on the liability for Immigration visas.

But sometimes finding a local partner can be tiresome and time-consuming. A safe way out is to have a ‘nominee’ partner, and many companies offer a platform to own one. This kind of arrangement can provide you complete operational and financial control and reduce the risks associated with appointing an unknown individual. Further, this arrangement obviates the need to part with a share of your profits, because such arrangements are made as per a fixed annual fee.

All said and done, the process of acquiring a local partner in Dubai is complex and financially risky. As the law of the land categorically places you at the mercy of your partner, you may find yourself in a soup if you end up acquiring an unscrupulous one. Whether you plan to open a modest shop or a major enterprise, consulting a business set up agency will make matters easy for you. A reputed agency like Commitbiz will guide you through the entire gamut of registration complexities, all while protecting your interests. Additionally, it will help you get acquainted with many other issues associated with opening a business in Dubai and other cities of UAE. Contact us today.