Do I Need a Corporate Sponsorship in Dubai to Setup a Business?

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The UAE market has been prosperously encouraging foreign investments from all across the world. Setting up a new company is undoubtedly daunting, but it comes with many long-term benefits once you have proper guidance and support in place. Additionally, making things easier for foreign investors, the government obligated to partner with an individual or a Corporate Sponsor in Dubai whenever they wish to initiate a business setup in the UAE.

Investors may initially find it unappealing, seeing it as limiting their ownership rights; however, this law was primarily set in place to protect their interests. As they are new to the market and uninformed on legal procedures, being associated with an Emirati shall protect all their efforts and resources owing to their local partnership agreement. Every business setup that falls under the premised of the UAE Mainland and issuing against a commercial or an industrial license must follow this prerequisite to have a smooth business start in the UAE.

Understanding Local Sponsorship in the UAE

Local sponsors are the UAE nationals who own 51% shares and liabilities of your Limited Liability Company (LLC) when you plan to operate in the UAE Mainland. They make your market entry a seamless process vouching for your authenticity and widening your business horizons. Also, they have zero involvement in your business processes, getting compensated for their service with a fixed annual fee. More importantly, having a local sponsor is a legal prerequisite for you to operate successfully in the UAE mainland, so you shall responsibly go through this process for your future endeavours.

Corporate Sponsorship in UAE

The three types of sponsorship options available in the UAE are (1) Individual Sponsorship, (2) Corporate Sponsorship, and (3) Local Service Agent.

Find out more at: Individual and Corporate Business Sponsorship: How to Choose a Credible One?

You can opt for the one that will best support your business activities, legal structure, licensing type, legislation, and other relevant factors. However, catering to the needs of a diverse group of investors, the most commonly pursued partnership form is the Corporate Sponsorship in Dubai.

Corporate Sponsorship in Dubai

In this type of sponsorship, your sponsoring partner will not be an individual but a group of professionals working together under one corporation. As mentioned earlier, these sponsors hold 51% ownership of your business, have no share in your profits, no involvement in operational decisions, and are only charged a fixed fee every year. They are trained in their respective fields and caters to all the necessary aspects of your company formation in Dubai. In addition, corporate sponsorship has a broader capacity and networking lines with legal authorities, thus tremendously backs your company, providing reliable support before and even after your company is up and running.

Benefits of Partnering with a Corporate Sponsor in Dubai

Corporate Sponsors facilitate you to secure your business in the long run, allowing you to have complete control over your business assets, net profits, company administration, and management procedures. Furthermore, it remarkably supports your company in the following ways:

  • Incorporate your concerns and provide in-depth contracts prepared by first-tier legal counsels ensuring complete legal protection for your business.
  • Have multiple signatories across emirates, so you never face delays when a local sponsor’s signatures are required for legal purposes.
  • Highly accessible and can be relied upon when faced with legal concerns.
  • Reduce the risks of succession planning and asset freezing for you.
  • Protects your ownership rights against article 91 of the Federal Law applied to commercial companies.
  • Eliminate the risks of legal disputes in company ownership.
  • Provide you with complete business control and liberty in decision making.
  • Have a vast resource capacity and networks with the legal authorities.
  • Their positive reputation incredibly boosts the credibility of your business.

Corporate Sponsor

Things You Need to Know When Finding a Corporate Sponsor in Dubai

Your company formation process is significantly accelerated when you are associated with the right corporate sponsors. Corporate Business Enterprises (CBS) is one of the reputable corporate nominees that may assist you in your business setup plans. This corporation is backed by the parent company, The Corporate Group, having all-inclusive subsidiaries. Each of their subsidiaries has a specialized group of professionals to address each of your business setup needs carefully.

Ideally, after company formation in Dubai, you need to hire a corporate consultancy firm in the UAE to continually grow in the UAE region while complying with the local laws. However, the time and resources spent looking for a local sponsor and a consultancy firm can take a toll on the new investors. On the other hand, finding both services in a single partner can significantly facilitate your business development in Dubai.

TCG, with its comprehensive business portfolio, offers consultancy services along with necessary corporate training courses. If we may say, seeking support from such groups can substantially help strengthen your footprints in the UAE market in the long term.

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