How to Get a Local Sponsorship in Abu Dhabi?

A local business partner or you can say a local sponsor is required to establish LLC in the UAE, it's mandatory by law. This law is applicable for Abu Dhabi, Dubai as well as the other Emirates of the UAE. You need to be careful before choosing the business partner because your partner will always be holding the 51% of the company shares. So if you are a foreign investor, first you should understand the role of the local sponsor.

The 51% shares make the local investor a main owner which is the most difficult part for any foreign businessman. This law is changing now, the new GCC states are passing new legislation's and establishing free trade zones. With the help of this rule, a foreign investor will have the 100% shares that will provide him all the authorities.

Local Sponsor in Abu Dhabi

A COMPLETE GUIDE TO LOCAL SPONSORSHIP IN UAE 

There are total three types of local sponsorship available in the UAE as described below: 

1) Corporate Sponsorship: When a UAE national company's 51% of shares are owned by an individual or a group of partners of foreign origin, in this condition the business is required to sponsored by a company instead of an individual.

This sponsorship works better when you want to establish a limited company, a trading company or a manufacturing unit.

2) Individual Sponsorship: When an Emirati national ready to become your sponsor within his/her capacity, this sponsorship works best. It's not mandatory that he/she is doing the same business. An individual may be the UAE Government employee, a businessman or may be a professional.

In this case also, the Emirati will hold the 51% of shares and the liability of the company. It's also possible that a local sponsor in Abu Dhabi, hand over his/her power of attorney to the foreign investor and do contract to get the fixed annual fee.

You can go with this type of sponsorship when you want to establish a trading or limited liability company in UAE.

3) Local Service Agent: This kind of sponsorship is for those who is in the profession of a doctor, an engineer or an artisan. If an individual from the described profession wants to set up the business by offering expertise services, he/she needs to appoint a local service agent. Here this the agent will not hold the 51% share of the company. He/she will only act as a representative of the company and deal with all the required government work.

Alpha Transaction Following is one of the leading Business consultant services in Abu Dhabi. Alpha offer many services ranging from local sponsorship to even PRO services in Abu Dhabi.