For the establishment of an LLC in the United Arab Emirates, a Local Sponsor (Emirati business partner) is still required for many activities. That goes for both Abu Dhabi and Dubai, there is no difference here. Many people misunderstand the sponsorship part and think that this sponsor will invest in new business ideas. Please be advised that the "local" business partner does not participate in any investments for business development or ongoing operations, but only acts as a silent partner. This are government laws and cannot be avoided.

According to the UAE Companies Law, the business setup of a Mainland Limited Liability company that involves foreign investment mandates the involvement of a local sponsor. The business partner must be a UAE national or a corporate entity. Finding a local sponsor in Dubai, UAE for the business always remains a demanding task for startups and new entrepreneurs in the Emirates. A local sponsor is a UAE national or a citizen of UAE (locally known as Emirati). The local sponsor does not interfere in the day-to-day operations of the LLC company. The foreign company is bound to pay a lump sum amount every year for the services offered by the local sponsor in Dubai, UAE. A corporate business partner is similar to a local business partner and the difference is that the former is a business entity and the latter is an individual. A corporate business partner is a corporate entity fully owned by UAE nationals and comprises of a board of directors. A power of attorney acts on behalf of the corporate company. The profit and the revenue generated by the foreign company need not be shared with the sponsor. Sponsorship is mandatory for a wide range of enterprises that belong to the trading and commercial business category. Our lawyers give predominant importance to investor’s rights and safeguard the interests of the investors. Apart from corporate and local sponsorship services in Dubai, UAE.