The Role of Sponsorship in Dubai Business Setup: Everything You Need to Know

Sponsorship is a critical aspect of mainland business setup in Dubai. Here’s what you need to know:

Local Sponsor Requirement

Mainland businesses require a local sponsor who holds 51% of shares. This sponsor can be an individual or a local company.

Sponsor Responsibilities

The sponsor provides legal and administrative support, helping navigate local regulations and licensing requirements.

Financial Arrangements

Discuss and agree on financial arrangements with your sponsor, including annual sponsorship fees and profit-sharing agreements.

Finding a Sponsor

Seek recommendations from business setup consultants, who can help you find a reliable and reputable local sponsor.

Professional Sponsors

Consider using professional sponsorship services offered by local firms, which provide corporate sponsorship without interfering in business operations.

Legal Agreements

Draft clear legal agreements outlining the responsibilities, financial terms, and conditions of the sponsorship. Ensure both parties understand and agree to the terms.

By understanding the role of sponsorship, you can ensure a smooth mainland business setup in Dubai.


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