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Local Service Agent or Local Sponsor: Key for Foreign Investors in UAE

For foreign investors looking to invest, operate, and establish a company in Dubai, Abu Dhabi, Sharjah, or anywhere in the UAE, a Local Service Agent or Local Emirati Sponsor is a requirement under the UAE companies law and regulatory guidelines. This individual or corporate entity must comply with UAE law and regulations for foreign investors.

The Local Service Agent or Local Emirati Sponsor allows onshore companies to handle labor and immigration matters and complete the process of setting up a company. This enables companies to legally hire employees and secure residency visas for employees and investors.

Under UAE companies and civil law, a minimum 51% share of an LLC company must be held by a UAE national. This applies to mainland onshore locations, which are non-offshore or non-free zone areas. Only UAE nationals or companies entirely owned by UAE nationals can meet the legal partner requirement for foreign investors setting up an LLC onshore.

The following legal forms require a service agent to support company setup and operations in the UAE:

  • Branch of a foreign company
  • Sole Establishment Company or sole proprietorship company
  • Civil company

Business is booming in the United Arab Emirates. Business people from around the globe are hoping to benefit as much as possible from the current trends.

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