Corporate Sponsors in Dubai

The ever-expanding market of Dubai has turned it into one of the most preferred trading hubs for starting a new company. However, initiating a new business in Dubai is not a simple task. Business owners are required to conform to all the local rules and regulations as well as maintain high standards of quality. This is daunting for anyone, especially the foreign investors, who lack the knowledge of the prime locations, local norms, legal and organizational responsibilities etc., and wanting to start anew in the UAE. 

However, the legal authorities of the UAE have made this process easier for foreign investors by implementing certain conditions. Such conditions include requiring all the newcomers to partner with the local Corporate Sponsors in Dubai. Therefore, the basic step to start a new venture in Dubai or any part of the UAE calls for looking for a Business Sponsorship in Dubai.

What is a Local Sponsor?

A local sponsor is referred to as an Emirati partner or a company shareholder with investments from a foreign business owner in the UAE. This participant is required to own at least 51% of your limited liability company in order for you to initiate any operational activities in the UAE. This partner can be an individual person or a corporate entity owned by a group of Emiratis.

An individual partner doesn’t take any part in your business operations and often serves as a sleeping partner. They can also transfer the 100% ownership to you in exchange for a fixed yearly sponsorship fee. However, corporate sponsors holding 51% of your company shares support you in all of your legal and operational obligations. This doesn’t include the transfer of shares or complete ownership to the investor.

The major role your Corporate Business Sponsorship play is mainly supporting and facilitating your company as a prerequisite set by the commercial company’s law. These participants become your legal representatives against governmental authorities and handle all the important tasks for you, including paperwork, administrative tasks, licensing, your staff’s visa processing and immigration etc. Thus, it is important to look for a partner with high credibility, similar business interests, a strong and trustful relationship, and a capability to help you unload the burden of the corporate challenges.

Eligibility Criteria for Choosing Your Local Partner

You must understand the core needs of your business that will serve as the eligibility criteria for choosing your local sponsor. You must thoroughly evaluate the following key factors and choose the most fitting partner:

·  Degree of Partner Participation:

Firstly, you need to clear the degree of participation you want from your LLC company partner. An active partner, along with sharing all your legal and operational burdens, will also be entitled to have a part in your company’s profits and losses. On the other hand, a silent partner will only take a fixed sponsorship annual fee without any share in your income statement.

· Sponsor’s Capability to Serve What They Promise

Research your prospective Corporate Sponsors in Dubai and identify the ones that have the capabilities of delivering what they claim to provide. After verifying the details, prepare a Memorandum of Association (MOA) contract with your partner stating clear reimbursements of only the services you will choose. This will avoid any disappointment of having high expectations or loss of invested resources.

·  Reliability and Availability of Your Sponsor

You must ensure that you have a direct line of communication with your partner. Ascertain their schedule availability and if any clashes are expected in terms of your business needs. After the registration procedures are complete, there will be many instances when you’ll need your sponsoring partner to sign various documents or handle a legal situation on an urgent basis. Your corporate business sponsorship, be it with an individual or a corporate entity such as Corporate Business Enterprises (CBE), must make you feel safe before and after the agreement is signed.

· Business Continuity Rights in Case Your Partner Deceases

Prior to form a Business Sponsorship in Dubai, it is imperative to look for all possible instances, including the partner’s death. Therefore, foreign investors should make sure to form a legal agreement with their sponsoring party consensually. You must choose a partner that agrees to your business continuity in case of any succession is involved.  This will avoid uncertainties and disruptions even if your sponsor’s share is passed onto their next generation.

·  Ensure a Clear Exit Strategy is Available

Companies often get into Business Sponsorship in Dubai without having a clear plan on the exit strategy, which costs them a huge exit fee. However, if you clearly state these conditions before the agreement, it becomes easy to continue with your business operations later, even if you want to change your partner. The inclusion of this clause will save you both from financial as well as psychological damages.

When weighed down, partnership with local sponsors provides foreign investors with tremendous security and support and can be leveraged to the most if you can successfully find the right partner. The right partner will be the one that completely aligns with your business requirements.

Companies like Corporate Business Enterprises (CBE) are widely known for their comprehensive support and facilities when partnered, keeping all the above-discussed factors into consideration. Thus, you can choose the services from CBE or any other corporations in Dubai to ease the process of your business setup in the UAE.

By Anurag Rathod

Anurag Rathod is an Editor of, who is passionate for app-based startup solutions and on-demand business ideas. He believes in spreading tech trends. He is an avid reader and loves thinking out of the box to promote new technologies.