Finding a local sponsor in the UAE is an essential step for establishing a business as a foreign investor in certain legal forms, such as a limited liability company (LLC). Here are some steps to help you find a local sponsor:
- Understand the Local Sponsorship Requirement: In the UAE, local sponsorship is a legal requirement for certain business types. The local sponsor, also known as a local partner or Emirati sponsor, must be a UAE national or a company wholly owned by UAE nationals. They typically hold a 51% ownership stake in the company, while the foreign investor or company holds the remaining 49%.
- Seek Recommendations and Referrals: Start by seeking recommendations and referrals from your professional network, business associates, or contacts in the UAE. They may be able to provide insights or connect you with potential local sponsors.
- Engage Business Setup Consultants: Business setup consultants in the UAE often have extensive networks and can assist in finding a suitable local sponsor. They have experience in dealing with local sponsors and can guide you throughout the process.
- Attend Local Business Events and Networking Forums: Participate in local business events, seminars, conferences, and networking forums in the UAE. These events provide an opportunity to meet potential local sponsors and establish connections with Emirati entrepreneurs and business professionals.
- Online Platforms and Directories: Utilize online platforms and directories that connect foreign investors with local sponsors. These platforms act as intermediaries and provide a database of Emirati individuals or companies interested in acting as sponsors.
- Chambers of Commerce and Business Associations: Contact local chambers of commerce, industry associations, and business councils in the UAE. They may have resources or programs that facilitate connections between foreign investors and local sponsors.
- Conduct Due Diligence: When you identify potential local sponsors, conduct thorough due diligence to assess their credibility, reputation, and suitability for your business. Verify their background, experience, and track record. It’s advisable to seek legal advice to ensure all legal requirements and agreements are properly addressed.
- Engage in Professional Relationships: Building trust and fostering professional relationships are critical when identifying a local sponsor. Take the time to meet potential sponsors, discuss your business plans, and assess their level of interest and commitment. Clear communication and mutual understanding of expectations are vital.
- Consult with Legal Experts: Engage the services of a local UAE lawyer or legal firm that specializes in business setup and can provide guidance on the legal aspects of finding a local sponsor. They can review agreements, advise on legal requirements, and help ensure a smooth sponsorship arrangement.
It is essential to conduct thorough research, seek professional advice, and understand the legal and contractual obligations associated with local sponsorship in the UAE. Working with reputable consultants and legal professionals can significantly assist in finding a suitable local sponsor and navigating the complexities of the process.