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Understanding Sponsorship in Dubai Mainland

Mainland businesses in Dubai often require a local sponsor who holds a 51% share in the company. Learn about the different sponsorship options and how we can assist you in finding the right sponsor for your business.

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Sponsorship Types in Dubai Mainland

Choosing the right sponsorship model is crucial for businesses in Dubai Mainland. There are different types of sponsorship arrangements depending on your business type and structure.

Individual Sponsor

A UAE national who holds 51% of the shares in your business. This type of sponsorship is commonly required for LLCs and certain trade businesses.

Corporate Sponsor

A local company acting as your sponsor, providing additional corporate resources and support to help you navigate business operations and legal matters.

Nominee Sponsorship

Nominee sponsors remain silent partners, allowing foreign investors to retain full control over the company while complying with local regulations.

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Benefits of the Right Sponsorship

Compliance with UAE Law: Having a local sponsor ensures your business complies with UAE legal requirements, allowing you to operate smoothly and avoid legal challenges.

Full Business Control: Through nominee sponsorship agreements, business owners can maintain operational control of their companies while meeting the sponsorship requirement.

Corporate Support: Corporate sponsors provide additional support in terms of resources, networking, and connections to local markets, helping you grow your business.

Popular Sponsorship Options

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Requirements for Sponsorship Agreements

Legal Sponsorship Agreement: A legal sponsorship agreement must be drafted, outlining the terms and responsibilities of both the business owner and the sponsor.

Trade Name Registration: As part of the business setup process, the company’s trade name must be registered with the Department of Economic Development.

Memorandum of Association (MOA): An MOA is required to define the ownership structure and responsibilities between the business owner and the local sponsor.

Steps to Establish a Mainland Sponsorship Agreement

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Step 1: Identify Sponsorship Needs

Determine the type of sponsorship your business requires based on your legal structure and industry. Decide whether an individual or corporate sponsor is needed.

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Step 2: Find a Sponsor

We can help you connect with reliable sponsors who match your business needs and share your vision for growth.

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Step 3: Draft Legal Sponsorship Agreement

Work with legal professionals to draft a sponsorship agreement that outlines the roles, responsibilities, and financial terms clearly to avoid future disputes.

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Step 4: Submit Sponsorship Agreement

Submit the finalized agreement to the Department of Economic Development along with other business setup documents for approval.

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Step 5: Register the Business

Once your sponsorship agreement is approved, you can proceed with the trade name registration and other necessary steps to finalize the business setup process.

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