In the UA.E it is compulsory to have a local sponsor in order to establish a business. The local partner will only serve as a sponsor of the company and will not, in any way, interfere with transactions or participate in any activity of the company. In this arrangement, the local UAE sponsor is usually paid an annual “sponsorship fee” and in return the sponsor will provide all services like Licensing with Government Departments such as the Economic Departments, Labour Office and Immigration Department.
The type of sponsor you choose can make a big difference. Getting a reliable and well connected sponsor is crucial to the success of your business. We at AL FANAR are here to provide you with a reliable partner at very reasonable annual fees.
It is important however for you to note that, management and control of the business or company will always be with the Foreign Investor.