Sponsorship

Sponsorship

For a Mainland Company, it is mandatory to have a presence of the UAE national to hold at least 51% of the company equity. However, there are few exceptions to this regulation that can apply. · Certain business activities will allow 100% Foreign Ownership.​  Let us help you with this and contact us for assistance.

100% Foreign Ownership!

For a Mainland Company, it is mandatory to have a presence of the UAE national to hold at least 51% of the company equity. However, there are few exceptions to this regulation that can apply. · Certain business activities will allow 100% Foreign Ownership.​  Let us help you with this and contact us for assistance.

Mainland, Free Zone, Offshore

Generally, the United Arab Emirates is considered as a land of business opportunities in the Middle East and an essential business hub. The UAE governments policy is to attract investors and entrepreneurs to invest or to start a new business in the UAE. In the UAE there are more than fifty free zones.This shows how businesses have flourished in the region. Mainly there are three types of company in the UAE.

Mainland Company
Free zone Company
Offshore Company

Individual or Corporate Sponsorship?

Out of these three types of companies in the UAE, the requirement of sponsorship is only for mainland companies. Free zone companies in the UAE cannot do business directly with Mainland companies and offshore companies also cannot do any business within the country directly or indirectly. However, the type of entity you choose depends upon your business activity and the business model. For example, if you are planning to do service or trade with the local market, you should form a mainland company. To form a mainland company in the UAE, in certain circumstances, and for certain activities the investor will require a sponsor and the sponsor will be entitled to hold fifty-one percent of the shares in the company. In the UAE, there are two types of sponsorship. They are:

Individual local sponsor

Corporate sponsor

Individual Sponsorship

Individual Local Sponsorship

Means the sponsor will be an individual. The individual sponsor can be a UAE or GCC nationality and they will own the majority part of the share. The main benefits of the individual sponsor are mentioned below:

New business opportunity’s

Many expatriates prefer an individual sponsor from a potential or well-known family in the UAE. This is with the intention to get the new business opportunity through their reference. So that the investor can enter the new business market.

Easy approvals

To form a company with an individual sponsor the documents required are minimal and there is less bureaucracy involved. To process the company formation with a local sponsor is less time-consuming.

The annual fee is cheaper compared to the corporate sponsor.

There is an annua sponsorship fee. This fee will be agreed between the local sponsor and an expatriate before forming the company. So, the annual fee will be cheaper for an individual sponsor compared to a corporate sponsor.

Corporate Sponsorship

Corporate Sponsorship

Corporate sponsorship means instead of an individual a corporate or a company will sponsor your company to complete the formation process and help to run your company. The corporate sponsor has a physical office. This kind of company is a hundred percent owned by the United Arab Emirates nationality or GCC nationality. The expatriate can easily access or contact the corporate sponsor for their labour/establishment or visa purpose. The main benefits of corporate sponsorship are mentioned below.

Withdrawal rights:The corporate sponsor is always giving the side agreement where they will mention at any point of time expatriate can change the sponsor if they need and they are ready to sign the documents. Which means the corporate sponsor is giving full power to change the sponsor. GH International lawyers can assist you to find sponsorships for their business.