By working with UAE citizens as business partners, foreign entrepreneurs in Dubai might feel comfortable conducting business. A local sponsor must take part in the founding of a mainland UAE firm in accordance with UAE Civil Law and Commercial Companies Law. In other words, a UAE native sponsor is required for an expat business owner to operate on the mainland. A UAE national or a business with 100% UAE ownership is the local sponsor. In addition, the local sponsor may act as an LSA or local service agent. The services provided by the local service agent are paid for annually by the foreign corporation.
A family membership card and a current Dubai visa are required for a patron with UAE citizenship (Emirati).
The individual local sponsor is a UAE national who holds 51% of the total share of the company. The remaining 49% goes to the foreign national. The individual local sponsor has no gender-based restrictions.
The corporate sponsorship ownership rights are identical to Individual sponsor rights. 51% of the total share of the company is owned by the Corporate entity. The foreign national enjoys 49% of the share.
The LSA does not hold any ownership rights in the business nor take part in the day-to-day business affairs. 100% ownership rights are held by the foreign national.