Complete guide on Local sponsor to start a business in Dubai, UAE
If you want to start a new business in Dubai, UAE, and you are a foreign investor, you will need a local sponsor. A local sponsor is a UAE national who will act as a partner in your business, providing sponsorship services and fulfilling all your legal requirements. Here is a complete guide on finding and working with a local sponsor in Dubai, UAE:
Understand the local sponsorship requirements: In UAE, as a foreign investor, you need a local sponsor to set up your business. A local sponsor can either be an individual or a company and a male or female. The sponsor’s main role is to support your business activities and ensure compliance with the local laws and regulations. However, they will not have any type of share in your business profits.
Find a local sponsor: You can find a local sponsor through various channels, such as networking, online directories, or business centers and through references. It is essential to choose a sponsor who is trustworthy and has experience in the same industry. You should also consider their fees and terms of the agreement.
Sign an agreement: Once you find a suitable sponsor, you need to sign a sponsorship or sponsor agreement. The agreement should include the responsibilities of both parties, the fees, the time duration of the agreement, and the termination clauses. You should also consider hiring a lawyer to review the agreement to ensure it is in line with the local laws and regulations in UAE.
Apply for the necessary licenses and permits: With the support of your local sponsor, you can apply for the necessary licenses, find office locations and permits to start your business. Your sponsor will help you with the legal requirements and ensure you comply with all the local regulations.
Fulfill the legal obligations: As a foreign investor, you need to compile and fulfil specific legal obligations to work with a local sponsor. For example, you need to obtain an office tenancy contracts, residence visa, register with the Chamber of Commerce, and pay the necessary fees.
In summary, finding a local sponsor is an essential step to start any business in Dubai, UAE. You should choose a sponsor who is supportive, trustworthy and experienced in the same industry. It is also essential to sign a agreement, apply for the necessary licenses and permits, and fulfil your legal obligations.
Requirement to start a business
The specific requirements to start a business in Dubai can vary depending on the type of business you start and legal structure you choose. However, here are some general requirements to consider:
Business plan: You will need a well-written business plan that outlines your business goals, market analysis, target best audience, financial projections, and marketing strategies.
Legal structure: You need to decide on the legal structure of your business, such as a sole proprietorship, partnership, LLC, or branch office for existing business in other countries. This will depend on your business needs, ownership structure, liability, the scale of business and taxation.
Business name and registration: You need to choose a unique business name which represent your business and register it with the Department of Economic Development (DED). The registration process may involve submitting legal documents, such as a trade license application, tenancy contract, and NOC from the sponsor also certified documents which is attested from the best certificate attestation firms or entities in UAE.
Capital and investment: You may need to show proof of capital investment to start your business, such as bank statements, assets or property, or loans. The capital requirement can vary depending on the type of business and cope of it.
Licenses and permits: You need to obtain the necessary licenses and permits to operate your business, such as a trade license, commercial license, professional license, and local industry-specific permits.
Office space and infrastructure: You need to have a physical office space and infrastructure to start your business in UAE. You can either rent or buy office space or consider shared or virtual offices as per your preferences and size of business.
Employees and visas: If you plan to hire employees, you need to obtain the employment visas and work permits for them. The visa requirements can vary depending on the nationality of the employee, role and their skillset.
What are the fees charged by Local sponsors to start a business?
The fees for a local sponsor in Dubai can vary depending on various factors, such as the industry, the level of involvement, and the terms and conditions of the agreement. The fees can range from AED 5,000 to AED 50,000 or more per year. However, it’s important to note that the fees are negotiable, and always you should discuss them with your local sponsor before signing the agreement. In some cases some local sponsors may also require a percentage of the profits or ownership in the company, but this is less common. It’s recommended to seek legal advice from experts and compare different options before choosing a local sponsor and finalizing the terms of the agreement.
In summary, starting a business in Dubai, UAE requires careful planning, legal compliance, and a thorough understanding of the specific requirements for your business type and legal structure. It’s also recommended to seek legal and professional advice and compare different options before starting your business.