A local service agent or a local sponsor (corporate sponsorship) in Dubai is an individual or corporate vehicle that meets the UAE regulatory requirements. To set up a company in Dubai, Abu Dhabi, or UAE, you need one of these options in support of the business setup.

It is mandatory for foreign investors to hold either a Local Sponsor or a Local Service Agent. This can be an individual or a corporate structure for onshore company setups within the Economic Development Zones as per the UAE law.

Corporate sponsorship: In a Corporate Sponsorship, a company that is your local sponsor will hold 51% of the shares and obligations. Whereas, the individual or group of foreign investors hold the other 49%. The Emirati or local sponsor is a company rather than an individual.  Corporate sponsorship in Dubai is usually the preferred choice, as it provides further security for the expat partners.

Individual Sponsorship: In an Individual sponsorship the business sponsor is an individual in his or her own capacity. The local sponsor must be a UAE national also known as an Emirati. The Local Sponsor holds 51% of the shares and liabilities of the company and 49% is held by the foreign partner. As the local sponsor is the main shareholder, he or she can give a Power of Attorney (POA) to the foreign investors. This POA helps them manage his or her shares and rights in the company for an annual fee.

The Corporate Sponsorship Option

The following legal forms require a service agent to support the company setup and operations in the UAE:

We at ACT, understand that many entrepreneurs find it worrisome to engage a local sponsor.  As this, gives them 51% of their company shares. This is why our Free Corporate Sponsorship service* in Dubai gives you complete peace of mind.

With ACT, there is no need to spend time searching for and building a rapport with an individual. Instead, we provide a premier corporate nominee to act as your local sponsor in Dubai, Abu Dhabi, and Sharjah.

Our main aim is to give you 100% financial and operational control of your company. While also, protecting your shareholder rights in the LLC. The agreements and documents we use are by first-tier legal counsel and incorporated for over a decade. We make sure you have all the documentation you need to protect your business and secure the financial rights of your business

The following legal forms need a service agent to support the company setup and operations in the UAE:

The first being a Branch of a foreign company which can be either a representative office or a full foreign branch office. A representative office is a sales and marketing office and cannot trade commercially. A full foreign branch office can perform activities offered by its parent company upon approval of licence.

Both legal forms need a service agent.  Either, as an individual or corporate vehicle to complete the incorporation process. A service agent’s responsibilities include rendering specific necessary services to the company. They hold no financial liabilities or obligations in relation to the company inside or outside the Emirate.

The second legal form is a sole establishment company, or sole proprietorship company. The owner of a Sole Proprietorship business in Dubai, Abu Dhabi or Sharjah is an individual and not a company. The Sole Proprietor owns 100% of the business. He or she also controls all its operations and keeps 100% of any profits. A sole proprietor is also responsible for all business debts and financial obligations. A Local Service Agent (LSA) is a must, if the owner is a National of a country other than the UAE or GCC, in support of the license.

The third legal form is a civil company. This is a partnership with foreign investors owning 100% of the equity combined as individuals. The service agents in these legal forms generally do not hold the equity and are not involved in the company operations. The service agent services come at a fee which is usually per annum. Do note that for certain business activities, the authorities need the agent to have certain qualifications. The LSA would also own shares in the company due to the civil liability linked to the activity. In such a case, the Local representative would then be the local sponsor and not a local service agent.

With business, booming in the UAE, entrepreneurs from around the world are looking to make the most of the business boom.

It is important to have the right partner, due to the local laws and restrictions in place for foreign-owned companies and investors in the UAE. Hence, you require a partner who can add value to your investment and protect your rights in the business and in the UAE. This partner should help in the smooth establishment of your business. He or she should inform you on local compliance and laws and provide connections. This will help you to make your business a success. Considering the diversity of the market, makes it even more important to have a well-connected agent on the ground.  The Agent should add real value to support your company.

ACT PRO and Business Services will help you to make the most of your business opportunities in the UAE. We stand in as your local sponsor or service agent via our corporate service agent and sponsorship vehicle. Our Sponsorship and service agent services are completely compliant and provide total peace of mind. Feel free knowing you have a professional and ethical sponsor and pro services partner. ACT PRO & Business Services is the first-ever company to provide sponsorship and service agent service for Free. Avail of our free corporate sponsorship or Free local service agent offer with our annual Corporate PRO Services agreement.