What is a Local Sponsorship in Dubai?

UAE has a highly resourceful and prosperous business ecosystem that supports more than a 100 sectors inhabited by businesses from over 200 different nationalities. According to the Pinkerton Risk Index Report of 2017, UAE ranked on the 5th spot as the considered in the top 5 safest places in Asia-Pacific and the Middle East to conduct business among its specialized zones, mainland company setup is the most sought after UAE business setup solution for foreign investors. Forming an LLC company in Dubai mainland involves the appointment of a” local sponsor in Dubai” who has 51% share eligibility in the company. Despite the local sponsor holding the majority shares of the company, the entrepreneur maintains complete control over the business’s administration and operations. Hence, it is crucial for expat investors to readily understand the role of local sponsorship and how it works in UAE. What is a Local Sponsorship? Local sponsorship is a mandatory condition where the expat is r...