Looking for a Local Sponsor in Dubai? Things You Need to Know to Find the Right Partner

To establish a business in Dubai, Abu Dhabi, Sharjah or anywhere in UAE mainland, you require a local sponsor. If you get into partnership with a stranger, it adds the exposure and risk of business even more. This is one of the risks that foreign investors take on when they look at setting up as an LLC.

Finding a trustworthy sponsor that meets the criteria in support of the business model and legal form demands isn’t as challenging a task as some may think, as long as you perform the relevant due diligence. Most local sponsors prefer to have their involvement in the business limited and prefer to ensure the infrastructure and documentation of the entity reflects the same. The foreign partner’s solely managing companies fall under the LLC legal form. The local partner/sponsor receives an annual sponsorship fee for his association with the business.

It is essential you make an informed decision on whether or not you would like to go into business with the suggested sponsor. As we have developed an extensive insight over the years in establishing numerous entities and business, we are now in a position where we can guide you on what are the things you must consider when looking for a local sponsor for your business.



First and foremost, meet your sponsor. It may seem like a no brainer but many investors, especially going through middlemen, never meet their partners. This is highly advised against, as it is in your benefit to have a better understanding of the partner, you are entrusting with your business. Especially since their social and legal standing will influence and have an impact on your commercial dealings.



Looking through the portfolio of companies that the partner sponsors and understanding his involvement in the day to day running of the businesses can be an excellent indicator of what you can expect his participation in your business to be.

Expired licenses, WPS blocks on the sponsor’s other companies can pose as a hindrance to your company’s renewal and result in prolonged delays, which makes it necessary for you to know the kind of businesses that the sponsor is involved in.



Another crucial element to your selection process is whether or not you are in agreement about the powers relating to the general management of the business.

For procedures relating to labour, immigration, management of the business, signatures of both, you and the local partner are required. The partner can transfer his rights to you through a Power of Attorney that gives you complete control over the running of your business.

If possible, support documentation relating to the powers of the 51% ownership should be prepared. Detailing the relationship between the partners will protect both partners in the future.

In conclusion, the local partner is an essential part of your business, it is imperative you make a decision that best suits the needs of the business model whilst providing maximum security in documentation and relationship.


To know more about local sponsor in Dubai / Free Sponsorship Dubai / Company Setup Dubai , fill out our contact form or contact us on +971 4 428 1505, +971 52 104 4794 or email us at solutions@actgroupservices.com