UAE Local Sponsorship

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Company Setup in Dubai: UAE Local Sponsorship for Your Business

Establish Your Business in Dubai: Secure UAE Local Sponsorship Launch your Dubai company effortlessly with the aid of UAE Local Sponsorship. Our experts deliver end-to-end support for business incorporation and setup.

UAE Local Sponsorship solutions:

Our team consists of seasoned professionals who have a deep understanding of sponsorship dynamics and possess extensive experience to offer you essential advice and support tailored to corporate entities. In compliance with UAE Federal Law No. 2 of 2015, it is mandatory for a local Emirati individual or company to act as a local agent for foreign businesses establishing a presence on the UAE mainland. To streamline the process and minimise unnecessary complications, we thoroughly evaluate multiple aspects before suggesting or assigning a local sponsor to our clients in the UAE. Selecting an appropriate sponsor is critical for the flourishing of your enterprise.

In contrast to standard sponsorship arrangements, our sponsors at Nexswitch Sponsorship voluntarily relinquish all company entitlements to the foreign proprietor. In addition, we provide investors with a memorandum of agreement to safeguard their profits and shares within the firm. This agreement empowers our clients to operate their businesses in Dubai with complete autonomy, independent of the UAE national sponsor.

We also offer services to help set up your enterprise in the Free Zone, recognised as a premier international business hub that extends numerous benefits to overseas companies. The Free Zone offers a strategic locale that serves as a thriving international trade centre, enriched with multiple opportunities for global businesses.


  1. Can I establish a company without a local UAE national as a sponsor?
    The requirement for a UAE national to serve as a local agent on the Dubai mainland varies depending on the business activity you wish to undertake. For activities such as general trading, contracting, real estate, and others, a UAE local sponsorship is a necessity. In an LLC structure, the UAE national will typically hold a minimum of 51% ownership. For professional licences with a sole establishment structure, the UAE national will function solely as an agent. It’s important to note that the UAE national's agreement to a fixed sponsorship fee is for the use of their name by the company, and this arrangement is often formalised through various legal agreements.
  2. What is a UAE local sponsor?
    A UAE local sponsor is a citizen of the UAE who either acts as a service agent or owns a 51% stake in your company, facilitating the establishment of your business in Dubai or the wider UAE.
  3. What are the annual costs for a UAE local sponsor?
    The fee a UAE national charges for sponsorship varies with the business type. Typically, the starting fee for a local sponsor is AED 8,000 annually. Nexswitch Corporates can assist in connecting you with a credible and professional UAE national for company registration.
  4. Are you able to provide investor protection agreements?
    Yes, we provide instruments such as MOUs, side agreements, or trust agreements to secure the interests of foreign investors in their company's shares and profits.
  5. How do I find a suitable sponsor for my business?
    Nexswitch Corporates can assist in locating a reliable UAE local sponsor for an LLC or local agents for professional licence setups, including sole establishments, partnerships, or foreign company branches in the UAE.
  6. Is it possible to get a refund on sponsorship fees paid to a UAE national?
    Should the local sponsor fail to sign and notarize the relevant memorandum or service agent agreement, the full amount of the sponsorship fees paid can be refunded.

  7. What does corporate sponsorship mean for company formation in Dubai?
    Corporate sponsorship is an alternative to individual sponsorship, where an established company acts as your sponsor. This option often provides a more robust legal framework, reducing individual-related risks and allowing for corporate-level governance and succession to be managed under company law. A corporate sponsor can also offer additional support, such as assistance with licence and visa renewals.
  8. Do I need a local sponsor to set up a company in a free zone?
    For setting up a company in a free zone, you do not require a local sponsor. Expatriate shareholders can own 100% of a free zone company.

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