Corporate Sponsorship for your business in UAE:
When it comes to setting up in the UAE as a foreign business person or company, there are basically two options: you can start a business in a free zone or launch a mainland company. While there are opportunities in both, there’s an advantage in favor of setting up a mainland company.
One of the most compelling reasons is that your company would be able to trade directly with other mainland entities. You would also have a greater scope when it comes to business activities – as a mainland company you could take on governmental work, benefit from personal taxes, and offer more visas to employees.
Non-Gulf Cooperation Council (GCC) nationals have to be sponsored to launch a mainland business in the UAE. According to UAE law, the sponsor must be a registered national and be made a partner with at least 51% of company shares, in the case of an LLC (Limited Liability Company). There are cases where foreign nations can own 100% of the shares in their company dependent on the business category, but will still need a local service agent to sponsor the company in UAE. Also for Foreign Branches, it is required a Service Agent.
Corporate Sponsorship means having a legal corporate entity hold 51% shareholding rights in the company in case of LLC and as Service agent in case of Establishment or Foreign Company Branch.
Corporate Sponsorship Services
- Legal Protection:
With a Corporate Sponsorship, the risk of disputes are minimized as the foreign national will be dealing with a professional representative like Consultants of Plus UAE who understands the legal and ethical boundaries of business.
- Control & Involvement:
Individuals may have an uncontrolled number of sponsorships being managed by different agents which can make the company a casualty on labor block issues or other complications.
Corporate Sponsors like Plus UAE will provide 100% Control to the Foreign Shareholder and ensure Independence from other companies hence untoward incidents like labor blocks will be avoided.
- Succession Plans:
If your individual sponsor dies or retires, their shares transfer to their legal heirs. You may find yourself with a new sponsor who doesn’t have the skills of your previous sponsor, who doesn’t want to continue being your sponsor, or who perhaps wants to take a bit too much interest in your company. With corporate sponsorship, this isn’t an issue, so there is no need for succession planning.
- Interference:
With an individual sponsor, your partner may or may not interfere with your business. Choosing a corporate sponsor like Plus UAE on the other hand, you retain full control with zero interference from your partner