Think before starting a business in UAE. When it comes to setup a business in Dubai, decide where you want the company to be located. on the mainland or in a free zone. If it is intended to be set up as an onshore or mainland company, you will need a Local Sponsor. This is mandatory in all matters of company formation in UAE , and a good business setup consultant can help you out with this part.
The Local Sponsor needs to be an Emirati (this is the term used to address an UAE national, someone who is a citizen of the United Arab Emirates) who has attained the age of 21. It could also be a company incorporated in the United Arab Emirates that is 100% owned by Emiratis. According to UAE law, the Local Sponsor (also referred to as Local Partner) must own 51% of the shares in the company. He/She will legally represent the company before all Government agencies.
So you need someone with experience in company registration in Dubai. A company formation expert who has specific experience in business setup in Dubai can put you in touch with the right Local Sponsor for your business. It is to be noted that the Local Partner owning 51% of the shares in the company does not mean he/she will take home 51% of the profits. Things work differently in the UAE. The Local Partner could be compensated for his/her services on a monthly / quarterly/ half-yearly / annual basis, or he/she could take a percentage of the sales.
Alternatively, you could set up your company in a free zone. Free zones are established with specific objectives in mind, and have dedicated infrastructure for the same purpose.
