UAE as a deep-rooted land of commerce and business success, setting up a business by an entrepreneur individually and independently is quite hectic and time consuming. This is exactly where a local sponsor plays a key role, guiding and setting up businesses, registration and licensing with no delay at all.
Within the laws of the UAE government, any foreign investor is required to be represented by a resident of UAE nationality as a local sponsor. A local sponsor delivers a sense of stability and assurance to the entrepreneur by setting up business grounds registration of business, licensing, strengthen business relationships and many more. In order to have a proper industrial or commercial business establishments, presence of a strong and influential local presence is a must. For the services provided by the local sponsor in Abu Dhabi.
As per the UAE company laws and mandatory regulations to be followed by the foreign investors, when running a commercial establishment in the UAE mainland, especially a LLC, 51% of the shares are held under the power of the local sponsors while expats can own up to 49% of the business shares. This shares are further relieved to the expat with a power of attorney. Hence a local sponsor or Abu Dhabi or a local sponsor of Dubai or UAE does the best to reach you to your full entrepreneurial potential.
Choosing a local sponsor is the wisest decision to be taken by the foreign investor.
Since there are three types of sponsors a foreign investor can come across, it is important for an entrepreneur to know the differences and the benefits and risks of choosing wisely a good sponsor.
Individual local sponsors in Dubai or local sponsors in Abu Dhabi, have to be of UAE nationality and above the age of 21. The local sponsor hold 51% of the business shares and the expat can only own upto 49%. The local sponsor can be paid a fair sum of money per annum and 100% of the profit can be owned back with help of a power of attorney. The local sponsors never deals with or interfere with the business activities of the clients hence a total transparency and a sense of freedom can be experienced throughout the course of business venture.
A local sponsor not only holds half the shares but also does some very important function. A local sponsor can be a silent partner or be an equally responsible as the expat for his/ her business. A Local Sponsors does not interfere any kind of expat business. The much more interesting fact is that a local sponsor does not interfere with the foreign investor’s day-to-day business.
For a local sponsor dealing with certain activities are of key values