Difference between local service agent and local sponsor - Decisive Zone
If you wish to set up business in the UAE, you need a local sponsor in place as per the law. Before finding the right sponsor you must know the difference between local service agent and local sponsor.
A local sponsor can take up 51% of company ownership giving you 49% of the ownership. The terms and conditions are laid out between the two parties. A local sponsor is suitable for commercial activity and industrial activity license. It can be an individual or corporate body.
Whereas, a local service agent gives you 100% ownership in your company. They help you out with government dealing acts as a representative.
Most of the sponsors are paid annually with a fee of Dhs 10,000. There are a number of things you have to take care of before approaching a sponsor. Know their expertise and goodwill in the field in order to eliminate any hiccups that come up relating to setting up the business.
If you wish to set up business in the UAE, you need a local sponsor in place as per the law. Before finding the right sponsor you must know the difference between local service agent and local sponsor.
A local sponsor can take up 51% of company ownership giving you 49% of the ownership. The terms and conditions are laid out between the two parties. A local sponsor is suitable for commercial activity and industrial activity license. It can be an individual or corporate body.
Whereas, a local service agent gives you 100% ownership in your company. They help you out with government dealing acts as a representative.
Most of the sponsors are paid annually with a fee of Dhs 10,000. There are a number of things you have to take care of before approaching a sponsor. Know their expertise and goodwill in the field in order to eliminate any hiccups that come up relating to setting up the business.
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