Find your Business Sponsor or
Local Sponsor in Dubai

Our Mainland Company requires a Local Sponsor to own 51% of the company’s shares. We can help you find the one for you.

Verified Local Sponsor

For those outside the Gulf Cooperation Council (GCC) who are keen on procuring a commercial or industrial licence on the UAE mainland, partnering with a verified local sponsor is a mandatory step. If, however, your business is located within a free zone or is operating under a professional services licence, this requirement is waived.

If your operational model necessitates such a sponsor, VR1 stands ready to streamline the process.
This partnership often manifests in the form of a mainland Limited Liability Company (LLC), where you, the Business Owner, maintain 49% ownership, delegating the majority 51% to the local sponsor.

It’s important to understand that this ownership division does not automatically dictate profit distribution, and typically, the sponsor remains removed from day-to-day operations. When it comes to securing a credible local sponsor, either an Emirati individual or a fully Emirati-owned corporate entity, complete with a functioning board, is requisite.

3 Types of Sponsorships


How can I find a reliable local sponsor for a mainland business in Dubai

To find a reliable local sponsor, you can utilize our business consultancy services, as we have a network within local business circles in Dubai.

What are the responsibilities of a local sponsor in Dubai?

A local sponsor's primary responsibility is to facilitate the necessary procedures for business licensing and compliance with UAE's legal requirements. country boasts a highly competent workforce. The UAE has an ease of doing business ranking of 16 out of 190.

Can a local sponsor interfere with my business operations in Dubai?

A local sponsor generally does not interfere with business operations unless explicitly stipulated in the agreement. However, they have the legal right to do so as they hold a significant stake in the company.

What are the costs associated with having a local sponsor in Dubai?

Costs associated with a local sponsor can vary, often involving an annual fee which can be a flat rate or a percentage of the business profits, subject to the agreement.

What legal protection do I have when partnering with a local sponsor in Dubai?

Legal protections involve contractual agreements which should be designed to protect the interests of the foreign investor, including clauses that prevent sponsors from taking advantage of their position.

What are the roles and rights of a local sponsor in a UAE mainland company?

The roles and rights of a local sponsor typically involve holding a 51% share in the company, assisting with governmental procedures, and potentially having a say in business operations based on the agreement.

What is the process to change the local sponsor of a mainland company in Dubai?

To change the local sponsor, a new agreement needs to be drafted with the new sponsor, and the previous sponsor must be adequately discharged as per the guidelines of the Department of Economic Development (DED).

Can a foreigner become a local sponsor in Dubai?

As of now, a local sponsor must be a UAE national or a company wholly owned by UAE nationals.

What happens if my local sponsor dies or wishes to withdraw from the partnership?

If a local sponsor dies, their shares in the company are usually passed onto their heirs. In case they wish to withdraw, the terms of the contract will determine the next steps.

Can a local sponsor own shares in the business or are they only entitled to the agreed sponsorship fee?

Typically, a local sponsor holds a 51% stake in the company, but they may agree not to interfere with operations or profits for an annual fee.

How is the local sponsor compensated, is it a percentage of profits or a flat annual fee?

Compensation varies based on the agreement. It could be a flat annual fee or a percentage of profits.

Can the local sponsor sell their sponsorship to someone else without my consent?

As per the law, the local sponsor cannot sell their sponsorship without the foreign partner's consent.

Is it possible to set up a mainland company in Dubai without a local sponsor?

Recent changes in UAE law have allowed certain businesses to set up in Dubai without a local sponsor, but the specifics depend on the business activity. Get in touch with us to know more

Can I have more than one local sponsor in Dubai for my mainland company?

Yes, you can have more than one local sponsor, but the total local sponsorship should amount to 51% of the company's ownership.

How to resolve disputes with the local sponsor in Dubai?

Disputes with a local sponsor are typically resolved through arbitration or court proceedings, and the terms of the contract often dictate the approach.

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