Local UAE Sponsorship

Local sponsorship requirement for the company formation in the UAE is dictated by the type of the activity that the company is performing. In respectPursuant to the current laws of the UAE, a min Mainland cCompany, it is mandatory required to have thea presence of athe UAE national or a fully owned UAE entity, to hold at least 51% of the company equity if the activity is considered to be of the “strategic impact”. However, for all other activities, the law has been updated recently allowing the foreign entrepreneurs to set up the companies in the UAE without the local sponsor. In general, there are a few exceptions to this sponsorship regulation that apply in the following scenarios:

  • Certain business activities will allow 100% Foreign Ownership.
  • Some activities apply only to the UAE nationals and give them 100% Local Ownership.
  • In the case of the GCC nationals, 100% Ownership is allowed.

In cases where it is needed, the UAE national or fully owned UAE entity will act as a Local Sponsor or Local Service Agent. The difference between those two roles is that a Local Sponsor is taking a holding part of the business equity company`s shares, while the Local Service Agent is acting simply as representative in the license. Frontera International Corporate Services Provider LLC can assist its clients with provision of the affordable and reliable local corporate sponsorship through our sister company, Native Frontiers Facility Management Services LLC.

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