Starting a business in Dubai usually requires a UAE national as a local sponsor. For foreign investors setting up a mainland company, a local sponsor is needed to meet legal requirements. At Mehar Business Solution LLC, we connect businesses with trustworthy sponsors who help you operate smoothly and confidently in the UAE.
A local sponsor is a UAE national (Emirati) who acts as a silent partner in businesses where 100% foreign ownership is not allowed. For most mainland companies, UAE law requires the sponsor to hold 51% of the business shares, while the foreign investor keeps 49%. The sponsor does not take part in daily operations and is mainly involved to meet legal requirements and represent your company with UAE authorities.
Foreign investors setting up a mainland company in Dubai must have a local sponsor to:
There are two main types of local sponsors available to foreign investors:
Although local sponsors do not take part in the daily operations of a business, they have an important legal and administrative role. They can sign government documents on behalf of the company, assist with the issuance or cancellation of work visas and labor cards, and support trade license renewals and document notarization. Sponsors also help settle government-related fees and facilitate interactions with ministries. In addition, they may act as the company’s representative in legal matters if needed and assist with mainland trade license renewals and related documentation.
To protect the foreign investor’s interests, a Local Sponsor Protective Agreement is signed between the investor and the sponsor. This legally binding contract clearly defines the sponsor’s responsibilities and limits, the annual sponsorship fees, clauses preventing interference in the business, and the conditions for terminating or renewing the agreement.
Finding the right local sponsor in Dubai can be challenging. That is why we provide access to pre-vetted Emirati sponsors, draft legal sponsor protection agreements, and offer full support for business setup. We also assist with sponsorship renewals, trade licenses, visa services, and all related documentation. Whether you are setting up an LLC, opening a branch office, or expanding your operations, we ensure you have a professional sponsor who meets legal requirements without interfering in your business.
Finding the right local sponsor in Dubai can be a challenging task. To make this process easier, we start with an initial consultation to understand your business type, activities, and ownership goals. We then match you with a reliable UAE national or corporate sponsor who suits your business needs. Our legal team prepares a sponsor agreement that clearly outlines all terms. We also handle the submission of documents for trade license applications and government approvals. In addition, we provide ongoing support for renewals, documentation, and any questions related to your sponsor.
Any UAE national (Emirati) over the age of 21 with a valid family book can act as a local sponsor.
No. You retain 100% operational and financial control, even though 51% legal ownership is under the sponsor’s name.
Yes, and it’s strongly recommended. This agreement outlines the sponsor's role, compensation, and non-interference.
Fees vary depending on the business type and the terms of the agreement. On average, it ranges from AED 8,000 to AED 25,000 per year.
A professional sponsor will not interfere. Mehar Business Solution ensures this with legally binding contracts.
An individual sponsor is a UAE national a corporate sponsor is a UAE owned entity. Each has its pros, depending on business needs.
Yes, but it involves legal procedures, including license amendments and approvals.
No. Free zone businesses are 100% foreign-owned and do not require a local sponsor or guarantor.
Yes, if your agreement allows it. Mehar Business Solution can help with a smooth transition.
We offer reliable sponsors, legal protection, and complete setup support giving you peace of mind as you launch or expand in Dubai.
