Corporate Sponsorship in Dubai

Corporate sponsorship for the establishment of companies in Dubai, United Arab Emirates

Dubai is considered among the seven Emirates and is a well-known trading hub in the Mena region. Various exhibitions and several business events take place in Dubai throughout the year. With the proximity of Expo2020, Dubai is becoming an increasingly attractive location for business people and business women around the world.

This is the perfect time to establish your business in the United Arab Emirates, as Expo2020 is expected to further boost the economy and offer even more business opportunities. With the support of our business consultants, setting up a business in Dubai can be quick and easy, but often requires corporate sponsorship or a local shareholder who holds 51% of the company shares.

UAE Business Setup with Local Shareholder

Annually, many foreign investors, entrepreneurs and founders plan to set up their business in the United Arab Emirates and they usually set up their business on the mainland of Dubai. However, depending on the desired business activity, the establishment of a company on the mainland of Dubai can be obligatory, for example for company setups in the construction industry.

The United Arab Emirates Commercial Companies Law stipulates that companies with limited liability or companies on the mainland of Dubai must have a local partner or a corporate sponsor in Dubai. This local partner is a United Arab Emirates Nationality and a corporate sponsor is a United Arab Emirates company that holds 51% of the company’s shares.

According to the legal regulations, a company formation on the mainland in Dubai requires a local sponsor of 51%. This is often a United Arab Emirates national who holds 51% of the company shares in his or her own individual capacity.

Foreign entrepreneurs who are setting up business in the United Arab Emirates for the 1st time will find this rule and its procedures very difficult. Foreign businessmen and women doing business overseas often do not know United Arab Emirates nationals personally. They are unlikely to be willing to give 51% of their company shares to them. In general, foreign entrepreneurs do not want the 51% local sponsor in the UAE to influence their business or affect their company’s profits every year.

Our Corporate Sponsorship Services

Our company formation consultants in Dubai and our professional services in Dubai will assist you with your company set-up in the United Arab Emirates. In addition, Business link Consultanciescan serve as a sponsor for your company. As your 51% local shareholder we can offer you more flexibility. You retain responsibility for securing your corporate governance and retain control of your company assets.

Company formation with corporate sponsor in Dubai

Rather than bringing a local shareholder on board, several foreign entrepreneurs are looking for corporate sponsorship services in Dubai. These corporate sponsorship services are provided by United Arab Emirates companies held by one or more United Arab Emirates nationals. Instead of one individual, the United Arab Emirates company of the 51% will become a local shareholder of the new company. This corporate sponsoring service offers the foreign company owner more financial security and individual freedom.

Advantages of Corporate Sponsoring in Dubai

Company formations in the united arab Emirates like a limited liability company (LLC, Dubai, mainland) need a local sponsor of 51%. If a UAE citizen is the sponsor, the emirate holds 51% of the company shares in his or her individual capacity. The UAE national does not need to be a businessman or have experience in the related field. With his 51% of the company shares, he can override the 49% foreign shareholder and influence various administrative processes and business decisions.

Corporate sponsorship allows the foreign entrepreneur to retain complete control. As a rule, corporate sponsors in Dubai do not want to get involved in day-to-day business. The foreign business owner retains full power and management.

In many cases, corporate shareholders with 51% of the shares do not claim to receive 51% of the company profits. Corporate sponsors in Dubai often only receive an annual fixed payment. Thus the foreign entrepreneur keeps full 100% of the financial advantages.

To regulate the rights and obligations of a local sponsor, side agreements are required. It could be difficult to prepare such documents as they must be available in Arabic. Another advantage of a corporate sponsor in Dubai is that the company makes side agreements that have already been drafted by expert legal advisors. This helps to secure rights and obligations and speeds up the process of setting up a company in the united Arab Emirates.