Local Sponsor in Abu Dhabi

Local Sponsor is a terminology used to depict a local service agent or nominee shareholder who has foreign investment in the mainland business in Abu Dhabi. All those who wish to start up a company in the UAE are expected to have an agent or local Sponsor. The Sponsor must be a national of the UAE having a Gincia card.  

Operating a company outside the Free Zone jurisdiction requires the mandatory appointment of a local sponsor. These sponsors serve as representatives to the UAE government. A local partner who knows all the requirements and aspirations of the business is an accomplishment against a corporate goal. There are three general Local Sponsor categories in the UAE. Among them, the selection is entirely based on the type of company.

Types of Sponsors in Abu Dhabi 

A sponsor can connect an investor to various resources from networks, partners and organizations to help you expand your business. One essential task is to choose the suitable type of local Sponsor. Three types of local sponsorship have been given that can help to develop different businesses.

1. Individual Sponsorship 

Individual sponsorship applies if you can become your Sponsor. This type of sponsorship works if you wish to establish a limited liability company or a trading company.

2. Corporate Sponsorship 

When a business owns more than 51 per cent of the shares and individuals or a group of local or foreign investors own the stock. Corporate sponsorship works when establishing a trading, manufacturing or limited liability company.

3. Local Service Agent 

When a professional entity wants to set up a business such as a doctor, or an artist etc. The entity represents the company in all administrative dealings and other legal formalities. A local service agent is suitable when you want to appoint for a professional license, representative office or a branch of the foreign company.

Local Sponsor Duties in Abu Dhabi

As listed below, a local Sponsor is responsible for some essential things. 

  • Cancellation of employees' work visa.
  • Cancellation of Employee Labor Status.
  • Terminating the bank accounts. 
  • Settlement of any outstanding debts(if necessary).
  • The Local Service Agent can, on behalf of the companies, negotiate with government officials and ministries and also facilitate the renewal process.
  • Interpreting the Arabic business registration contracts, local authorities are required to understand and interpret these documents and may sign them on behalf of their foreign business partner.

 Things to Know Before Hiring a Local Sponsor in Abu Dhabi

Cross-check a local sponsor before hiring. Here are a couple of the things you need to carry in mind.

  • Check if the Sponsor is a Dubai resident. If the Sponsor isn't a Dubai resident then the investor will travel for signatures or govt formalities each time. 
  • Have a full family background check on the sponsors. A sponsor from a well-reputable Dubai family will be an advantage to the company as the UAE national will most likely have goodwill in the region.
  • Selecting a government employee as a local sponsor in Dubai will benefit a company better as a result of direct connections with government agencies. 
  • The sponsorship deed agreement may be verified by a foreign investor before signing it. 
  • Be transparent and precise about the fees or payments to be charged to the local Sponsor and the sponsorship services. 
  • An investor may also seek advice about a local sponsor from a business consultant in Dubai. A consultant can provide information on a local sponsor's terms and conditions.

Procedure to Get a Local Sponsor in Abu Dhabi

These are the steps that would involve in finding a local sponsor. 

Step 1

Once the annual Local Sponsor fees have been paid, all UAE Local Sponsor documents will be sent.  

Documents include a copy of your passport and a copy of Emirates ID.

Step 2

You must sign your company name and apply for initial online approval on DED online or via any typing service centres. 

Step 3

Draft a Memorandum of Association of LLC License through any typing centre in Abu Dhabi and then notarize it to the notary public, Abu Dhabi Local sponsor and partner must be present to sign the MOA at the notary or any person authored on their behalf In the later stage; one must need to rent office space or shop and submit a final submission to DED or Online. Ministry of Human Resources & Emiratisation Establishment and GDRFA Cards are necessary if an owner decides to apply for an employment visa partner and ask for a license once it is issued. This service is provided on Abu Dhabi LLC registration (if you need a License Registration service through us then choose from the additional services).

Why Commitbiz?

Our experts at Commitbiz give you one of the broadest ranges business development solutions including,   

  • Advising on the funding of local businesses in Abu Dhabi. 
  • Introduction to a reputable and credible local Sponsor. 
  • Select the most suitable Free Zone for business in Abu Dhabi.  
  • submission of your incorporation and company formation licenses. 
  • Compliance with regulatory criteria for transactions involved in the establishment of companies in Abu Dhabi.  

Please speak to our experts about finding ways to secure Abu Dhabi trade licenses and operating licenses. To get more information on our Local Sponsorship Services, contact us today.