Dubai Local Sponsor – Secure Your Mainland Company Setup
Starting a business in Dubai often requires working with a UAE national, commonly known as a local sponsor. For foreign investors who want to set up a mainland company Formation, a local sponsor is necessary for legal compliance. At Mehar Business Solution LLC, we connect businesses with reliable, professional sponsors who allow you to operate smoothly and confidently in the UAE.
What is a Local Sponsor?
A local sponsor is a UAE national (Emirati citizen) who acts as a silent partner in businesses where 100% foreign ownership is not permitted. For most mainland companies Installments Packages available for new company formation particularly LLC UAE law requires a local sponsor to hold 51% of business shares, while the foreign investor retains 49%. However, the sponsor does not interfere in your operations and is primarily involved to meet legal requirements and represent your company before UAE authorities.
Why You Need a Local Sponsor
Foreign investors setting up a mainland company in Dubai must have a local sponsor to:
- Comply with UAE Commercial Company Law for mainland businesses
- Obtain trade licenses and government approvals
- Open bank accounts and handle labor or immigration matters
- Sign legal documents and represent the company when required
Benefits of Having a Reliable Local Sponsor
Working with a trustworthy sponsor provides many advantages:
- Legal Compliance with UAE regulations
- No Interference in business decisions or profits
- Access to Government Approvals faster and more efficiently
- Better Credibility with clients, banks, and local authorities
- Full Operational Control retained by the foreign investor
- Support with Dubai PRO services, licensing, and visas
- Custom Agreements that protect your rights and interests
Types of Local Sponsors in Dubai
There are two main types of local sponsors available to foreign investors:
- Individual Local Sponsor: An Emirati individual (often a businessman, government employee, or professional) who serves as a silent partner in your business is most common for LLC formations.
- Corporate Local Sponsor: A UAE-owned corporate entity that acts as the local partner is often preferred by larger companies or firms seeking more structured arrangements.
Responsibilities of a Local Sponsor
Although local sponsors do not interfere in the business’s operations, they play an important legal and administrative role, such as:
- Signing government-related documents on behalf of the company
- Assisting in the issuance or cancellation of work visas and labor cards
- Supporting trade license renewals and document notarization
- Settling government-related dues and facilitating interactions with ministries
- Acting as the company’s representative in legal matters (if needed)
- Assist in mainland trade license renewal and documentation
Local Sponsor Agreement & Protection
To protect the foreign investor’s interests, a Local Sponsor Protective Agreement is signed between both parties. This legally binding contract outlines the following:
- The sponsor’s responsibilities and limits
- Annual sponsorship fees
- Non-interference clauses
- Conditions for termination or renewal
Local Sponsorship Services by Mehar Business Solution
We understand that finding the right local sponsor in Dubai can be a challenging task. That's why we offer:
- Access to pre-vetted Emirati sponsors
- Legal drafting of sponsor protection agreements
- Full business setup assistance
- Sponsorship renewal support
- Help with trade licenses, visa services, and documentation
Whether you're setting up an LLC, opening a branch office, or expanding your operations, we ensure that you have a professional and hands-off sponsor who adds legal value without interfering in your operations.
Step-by-Step Process to Get a Local Sponsor in Dubai
We understand that finding the right local sponsor in Dubai can be a challenging task. That's why we offer:
- Initial Consultation: We evaluate your business type, activities, and ownership goals.
- Sponsor Selection: We match you with a reliable UAE national or corporate sponsor who fits your business requirements.
- Agreement Preparation: Our legal team drafts a sponsor agreement that clearly outlines all terms.
- License Application & Government Approvals: We submit the necessary documents for licensing and approvals through the proper authorities.
- Ongoing Support: Our team provides ongoing support for renewals, documentation, and any inquiries related to sponsors.
Ready to launch your mainland company with a reliable local sponsor in Dubai? Contact Us Call Us: +971 56 553 9955 Email: info@ajmanbusinesssetup.com Visit Us: Business Village, Block A, Port Saeed, Dubai, UAE Website: ajmanbusinesssetup.com
Mehar Business Solution LLC
Some FAQ About Dubai Local 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.
