|Thanks to continued economic growth, a safe and secure location, multinational culture, and access to a thriving global market, the UAE continues to rank as one of the top locations to attract investors and to start a business. If you are an investor or entrepreneur looking to expand your business into the UAE, the professionals at Creation Business Consultants can help you navigate the landscape to find the safest and most secure options to meet local sponsorship requirements.|
Foreign companies looking to setup or expand their business to Dubai and the UAE have the choice between establishing a mainland company structure and license or a free zone company structure and license. Depending on your specific business needs, and where you decide to open your business (wholly owned subsidiary or branch office), your company may be required to have a local sponsor.
Also referred to as a local sponsor, a mainland/onshore company structure or type provides attractive options for foreign investors to set up their company or to expand to the UAE. The main benefits include the freedom to trade across the UAE, freedom to trade outside of the UAE without any restrictions, ability to diversify organizational operations, access to a global market, unlimited growth potential, 0% corporate and personal tax, and the potential to contract and work with the UAE governments.
Companies operating in mainland/onshore are required by law to have a local partner. UAE Commercial Companies Law stipulates that an LLC must have a local UAE partner who holds a minimum of 51% of the company shares. Creation Business Consultants have the ability to help you obtain your mainland/onshore license and provide a safe, trusted corporate sponsor to hold the 51% shares in trust for your company. This model is one of the safest ways to ensure you are protected and maintain full management and control of your business.
To meet the company registration requirements set by UAE Commercial Companies Law and by the Economic Development Department, investors and entrepreneurs seeking to open their company or a branch office in the UAE can choose between an individual sponsor or a corporate sponsor to meet their sponsorship requirements.
When you partner with an individual sponsor, there is the possibility that they may want to receive a percentage of the business profits. Additionally, they may want to be actively involved in business management, operations, and voting direction of your company. Furthermore, you will need to ensure you have a plan in place should the sponsor not be available, become difficult to work with, become sick, or pass away.
Among the many benefit of entering into a corporate nominee sponsorship include:
At Creation Business Consultants, we recommend opting for a corporate sponsor or corporate nominee program. However, the type of local sponsor you select will depend on your industry and the specific needs of your company. Some business activities may require a local sponsor to hold certain qualifications as part of the requirements to complete their Company Trade License Agreement. For example, architectural or engineering business activities may request a local sponsor to hold certain educational qualifications. As you set up your company in the UAE, it’s important to seek the advice of an expert who understands your industry, as well as the needs of your company, to help you find the safest option for local sponsorship requirements.
At Creation, we do not use individual sponsors. Instead, Creation controls and manages several 100% Emirati owned companies to facilitate a corporate nominee partnership. We use these Creation companies to hold 51% of your company shares in a trust for your organization.
Selecting the right corporate partner for your business is an important decision. At Creation, we take pride in helping business owners from around the world to successfully set up their companies in Dubai and the UAE. Regardless of the size of your company, we have the skills, resources, and experience to help you navigate local laws and regulations to ensure you set your business on the path to success from day one.
Contact a member of our team today to schedule your free consultation.
Creation ensures clients receive a seamless, cost effective and proficient entry to the GCC market. We provide clients with the foundations and best practices empowering them to build and control a successful business.
We continuously strive to exceed client’s expectations whilst making certain they are protected from undue risk at all times. Creation Business Consultants is the preferred and truly trusted business partners for the GCC.