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Posted By: Jessica Augustin | 29 Nov 2017

Local vs Corporate Sponsor? Which one is suitable for Business Setup in Dubai Mainland?

In this short interesting Blog , we are going to give you a brief overview of the two types of Sponsorship while incorporating a Mainland Company in Dubai

Dubai is one of seven emirates in the United Arab Emirates. Dubai is a commercial, industrial and trading hub in the region, and keen attention has been paid to make the process of setting up companies fast and easy.

As we all are well aware, Dubai has won the bid to host the most awaited Expo 2020, which will give an amazing boost to its economy, and is expected to create over 270,000 jobs. Dubai has accommodated more than 15 million visitors by 2016 and it has surfaced as the shopping capital of the Middle East.These promising facts and excellent return on investment are attracting hundreds of entrepreneurs every month to UAE.

The UAE Commercial Companies Law requires that each company established in the UAE should have one or more UAE National Partner(s) as a local sponsor who will hold at least 51% of the Company’s Capital.Few Exemptions can be Companies established in Free Zones, Sole Establishments, Civil Companies etc.

Considering the wide scope of business and to target the local market, the majority of the entrepreneurs desire to start their business in Dubai mainland. The primary concern of any expat when setting up an Onshore Limited Liability Company (LLC) is that the UAE law requires a local partner to own 51% of the shares in the Company.

Individual as 51% Shareholder

For the entrepreneurs who are testing the UAE market for the first time , may find it difficult to find a Known UAE National as a partner.

In order to overcome this situation and to protect the interests of the Expat entrepreneurs, we ADAM Global can extend the service of our Sponsors whom we are Know for last 15 years and who are Silent partners in different mainland companies incorporated by us. We have exclusive POA(power of attorney) from these Sponsors with full company management powers with regards to their shares.

Complete operational powers will be provided to the expat shareholder or his representative appointed as Manager in the company and the same will be mentioned in the Memorandum of Association.

Corporate as 51% Shareholder

Another way to set up a mainland company is to have a corporate as the 51% Shareholder. This corporate will be 100% owned by UAE national(s).Even in this legal structure, the expat can retain the power to manage the business and 100%financial benefits can be routed to the expat.

This structure will be more flexible as the support of the entire management of the corporate firm is available at any point in time. Having a corporate Shareholder will allow you to overcome certain legal requirements when compared to individual Shareholder.The operations of the newly proposed company won’t be hindered even at the death of UAE national since the 51% shares are held by a company but not an individual.

Local Sponsorship or Corporate Sponsorship? 

The Choice of Sponsorship is totally dependent on the Incorporator and the personal comfort level. The benefit of a Corporate Sponsorship is that it gives you more financial freedom and personal sense of security.

If you would like to discuss what would be more benefitting for you, we strongly recommend to set up an appointment with one of our experts.

You can also directly reach out to me on the following details:

Anoop Cheerathodi 


Mobile : +971 564450049

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