Navigating the requirements of setting up a business in Dubai can be a challenge, especially for first-time entrepreneurs. A common question that arises is whether a local sponsor (nominee shareholder) is necessary. The answer to this question depends on several factors, including the entrepreneur’s nationality and the type of business they intend to establish.

At Zara Business Services, we understand the complexities involved in business setup and offer guidance tailored to your specific needs. For non-Gulf Cooperation Council (GCC) nationals planning to establish a mainland business with a commercial or industrial license, a local sponsor is indeed required as a business partner. However, if you are setting up in a free zone or your business activity falls under a professional services license, a local sponsor is not necessary.

If your business does require a local sponsor, our team at Zara Business Services is here to assist you every step of the way. We will help you establish a mainland Limited Liability Company (LLC), where you can retain 49% ownership while allocating the remaining 51% to the local sponsor. It is important to note that despite the ownership distribution, profits are not divided in the same proportion, and your local partner will have minimal involvement in the day-to-day operations of your company.

Finding a suitable local sponsor in Dubai can be a daunting task, especially for startups and new entrepreneurs. The local sponsor must either be a UAE national (also known as an Emirati) or a corporate entity entirely owned by UAE nationals, with a board of directors in place.

Zara Business Services specializes in connecting entrepreneurs with reputable local sponsors who meet the legal requirements and can serve as reliable business partners. We simplify the process of finding a local sponsor, ensuring a smooth and compliant setup for your business in Dubai.

By partnering with Zara Business Services, you can focus on your core business activities while we handle the intricacies of finding a local sponsor and establishing your company. Our dedicated team has extensive knowledge of Dubai’s business landscape, and we are committed to providing exceptional service and support throughout your entrepreneurial journey.