Several entrepreneurs have been facing difficulty while they plan to set up a particular business abroad especially in the UAE. They may have a variety of questions in their mind but one common question is whether they require a local sponsor for setting up a particular business abroad or not?
This depends upon a variety of factors like a business that one is planning to operate, the area in which they want to excel, and a wide range of other considerations. One can even start an LLC company formation in Dubai. This will prove to be beneficial for a particular person because it is one of the most practiced business forms in Dubai. One can even run it with the help of either “2” or maximum “50” shareholders.
An individual can even get his hands on PRO services Dubai which have been assisting individuals in departments like “Department of Economic Development (DED), Chamber of Commerce and Industry, Visa and Immigration Department”, etc. This all is being done so a client can be given maximum support which he needs in setting up his particular business without facing any sort of additional hurdles.
A person who is thinking of opening a particular Limited Liability Company (LLC) then he can do this with a specific partnership with a particular businessman or an individual. Then this person will be holding the majority of shares that is about 51% of a particular organization. Such sponsors also agree on a yearly fee and they even plan to give full power related to an attorney to a specific foreign partner. Like this, a businessman who owns a particular business can retain all profits and they do not have to share it with the specific majority stakeholder. Another advantage of this is that trades are not registered on a stakeholder’s name rather they are directly registered on a particular company’s name.
It only differs from local sponsorship on this basis that the sponsor is directly a UAE’s based company instead of an individual. This specific company should be registered under the UAE’s government laws.
The Need for Local Sponsor
It entirely depends upon an individual with which company they are planning to work with. But if one is trying to set up an LLC then they will require a local sponsor otherwise not.