Well, it depends on the type of business setup you intend to establish in Dubai mainland. A local sponsor has a stake of 51% of the company shares; but as a business owner, you have an option to maintain the control for a fixed annual fee.
A local service agent does not have any stake in shareholding; in fact, an agent acts on behalf of the company in all administrative dealings with government departments.
If you are planning to establish commercial or industrial licence on the UAE mainland, then you will need a partner with a local sponsor. If, however, you are setting up a business in a free zone, or applying for professional services licence, then the local sponsor is not required. If your company need a local sponsor, Smart Zones® UAE is there for your help.
In case of the local sponsor, you will have to set up an LLC in mainland with 49% 0f stake in the company and 51% with a local sponsor, but the good news is that your profits are not split in the same ratio, rather a local partner will have almost no say in business decisions.
In case giving of 51% of the share is worrying for you, opting for corporate sponsorship might be the solution to end your worries. We understand finding a local sponsor can be challenging due to the amount of time spent in searching for a reliable partner.
We aim to give you 100% financial and operational authority whilst protecting shareholder rights in the LLC company. We proceed ahead in this procedure in association with first-tier legal counsel for all agreements and paperwork. We ensure to protect your business and safeguard the financial rights of companies.
You have full control over management from staff, clients, and service.
As you retain 100% of the financial benefits
The most challenging part is side agreements, but many corporate sponsors propose detailed contracts by first-tier legal counsel to protect the shareholders and owners.