Shuraa Business Setup
Local sponsor in Dubai

Local sponsor in Dubai for business setup [Explained]

Updated 24 Jan 2021

The major challenges faced by aspiring entrepreneurs while setting up business in the UAE is the issue of sole ownership. The reason is that, to conduct any commercial or industrial business activity in UAE Mainland, a local sponsor in Dubai is required.

Though late in 2020, amendments to the Commercial Companies Law paved way for 100% foreign ownership. Even in Limited Liability Company (LLC) structure. This implies that there would be no need for local sponsor in Dubai. Thus, foreign entrepreneurs wanting to start their business must have clarity on why they need a local sponsor for business in Dubai. This is because they can be 100% foreign-owned and are formed with the help of local service agents. But if you will be involved in commercial, industrial, or trading activities in any of the emirates, you will definitely need to get a local sponsor for business in Dubai, Sharjah or Abu Dhabi.

Here are the key factors regarding sponsorship

Major advantages of local sponsor

Besides gaining access to the local market, you can enjoy other perks as well with a local sponsor for business in Dubai.

Limited Liability Companies that are formed with a local sponsor are free from tax. And a foreign investor, you can repatriate 100% of your profits. Also, you can open multiple branches across the UAE and get hold of various government projects.

Lastly, collaborating with a local sponsor for business in Dubai gives you an investor status in UAE. This enables you to obtain residence visas for you and your family.

How to find a local sponsor in Dubai?

If you are looking for UAE local sponsorship get in touch with Shuraa Business Setup, a pioneer in providing expert company formation services. Shuraa has sown seeds for more than 35,000 firms with its customised business solutions, and helped them grow with value-added services, including ready-to-move co-working offices, PRO, banking assistance, and VAT and accounting support, among others. 

Click here to book a free business setup consultation with Shuraa. You may call now +971-44081900, WhatsApp +971-507775554 or send us an email on

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