Setting up a business is a very difficult job and especially when you are doing it all by yourself, it becomes more complex than ever. Legal aspects are the first things that you should keep in mind before even planning to set up a business. Every other foreign investor wants to open up their business in Dubai as it provides a lot of profitable opportunities as well as tax rates are really low here. In most of the businesses that you find here in Dubai, local sponsors own fifty-one percent of the stakes. In case you do not have any idea about local sponsorship, keep reading!
Who is a Local Sponsor?
When an expat wants to open up a business in Dubai, having a local sponsor in Dubai for your business is a necessity. The local sponsor should be of UAE nationality, and also own minimum fifty-one percent of your business. In many cases, these local sponsors charge for their sponsorship and in return they do not take any share of the company’s profit. Irrespective of any gender, the UAE national needs to be above twenty-one years of age and must be either a government employee, business owner, or a professional. Apart from that, the local sponsor generally hands over the power and control of their part of the business to the company owner through the power of an attorney.
Benefits of Local Sponsorships
The main benefit of a local sponsor in Dubai is that you would not be able to open your business throughout UAE without them. Businesses with local sponsorship are hundred percent tax-free ventures which allow the foreign investors to repatriate a hundred percent of their profit. This also allows people an opportunity to open up numerous business projects all over the country.
Get your stakes back
A local sponsor in Dubai does not play any other role in your business apart from providing you with the opportunity to open up your business in any part of UAE. In case you want them to give you back your stakes which they are the owner of, you can pay them an affordable sum of money and they would transfer the power to you. Sometimes, you can also negotiate with them and give them a fixed percentage of your profit if required. It is best to contact sponsors trough the reputed agencies for the best deal. This way they won’t be able to charge unnecessarily and you will get the support of a team of professionals.
Find the right agency
In UAE, you would find various local sponsors, either with the help of the people who are staying there or you can also look for a local sponsor in Dubai through different online websites. These professionals will help you to find the right sponsor for your business. But one thing that you should always remember before opening up a business in UAE is that you should always go for the industry which you have the knowledge about and are also passionate about. Remember, there would be no livelihood if there is no fun in it.
