A common question from first-time entrepreneurs in the UAE is whether they need a local sponsor (Nominee Shareholder) in Dubai. The answer depends on several factors, including your nationality and the type of business you plan to establish.
If you’re a non-GCC national planning to start a business with a commercial or industrial licence on the UAE mainland, then yes—you’ll need a local sponsor as a business partner. However, if you’re setting up in a free zone or operating under a professional services licence, a local sponsor is not required.
If your business does require one, AB Nexis can assist.
You’ll first need to form a mainland Limited Liability Company (LLC), where you hold 49% ownership and the remaining 51% is held by the local sponsor. Importantly, this does not mean that profits are shared equally, and your local partner will not be involved in the daily operations of your business.
Finding a suitable local sponsor in Dubai can be challenging for new entrepreneurs. The sponsor must be either a UAE national (Emirati) or a corporate entity fully owned by UAE nationals and managed by a board of directors.
Choosing a Local Sponsor in Dubai – The Corporate Option
At AB Nexis, we understand that many entrepreneurs feel uneasy about involving a local sponsor and giving away 51% of their company. That’s why our corporate sponsorship service is designed to offer complete peace of mind.
With our corporate service agents, you won’t need to spend time searching for or building trust with an individual sponsor. Instead, we’ll assign a reliable corporate nominee to serve as your 51% local sponsor in Dubai.
Our goal is to ensure you retain 100% financial and operational control, while safeguarding your shareholder rights within your Limited Liability Company. All agreements and documents are drafted by top-tier legal professionals and have been thoroughly tested over time. We’ll equip you with everything needed to protect your interests and secure your business’s financial rights.
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