“When it comes to Mainland LLC business set up, 51% of the shares owned by the foreign company goes to the assigned business partner (local or corporate sponsor). And the foreign investors enjoy the remaining 49% of the company shares. “
According to the UAE Companies Law, the business setup of a Mainland Limited Liability company that involves foreign investment mandates the involvement of a local sponsor. The business partner must be a UAE national or a corporate entity. Finding a local sponsor in Dubai, UAE for the business always remains a demanding task for startups and new entrepreneurs in the Emirates. A local sponsor is a UAE national or a citizen of UAE (locally known as Emirati). The local sponsor does not interfere in the day-to-day operations of the LLC company. The foreign company is bound to pay a lump sum amount every year for the services offered by the local sponsor in Dubai, UAE. A corporate business partner is similar to a local business partner and the difference is that the former is a business entity and the latter is an individual. A corporate business partner is a corporate entity fully owned by UAE nationals and comprises of a board of directors.
UAE National Sponsor
UAE Civil law and Commercial Companies law necessitates the participation of a local sponsor in the UAE mainland company formation.etc
Ruling Family Sponsor
The United Arab Emirates was founded in the year 1971 as a Federation of 7 Emirates.