By cooperating with UAE residents, foreign businesspeople in Dubai can conduct operations more efficiently. UAE Civil law and Commercial Companies legislation need the engagement of a local sponsor in the founding of UAE mainland companies. So, to establish a firm on the mainland, an expat business owner must have a UAE national sponsor. The local sponsor is a UAE national or a corporation wholly controlled by UAE nationals who may also function as a Local service agent. The foreign corporation must pay an annual charge for the local service agent’s services.

The phrase UAE national sponsor refers to an Emirati sponsor holding a valid Dubai passport and a family membership card. The UAE national or local sponsor must possess 51% of the company’s total shares in Mainland LLC creation. Nevertheless, this does not apply to Professional firms and Representative Offices established in UAE. Foreign or expat investors have 100% ownership of the firm in the case of a Professional or Representative Office set-up.

The local sponsor has no function or participation in the company’s daily operations. The local sponsor serves as a mediator between the firm and the UAE government and helps the company pursue numerous administrative requirements. The official procedures include immigration and visa approvals, license issuance procedures, etc. The national sponsor, business sponsor, or local service agent of the United Arab Emirates may be a total stranger from a completely different background.