For entrepreneurs in this region, especially those starting their first business, it is common to inquire about the need for a local sponsor (Nominee Shareholder) in Dubai. The requirement for a local sponsor depends on various factors, such as your nationality and the type of business you intend to establish.

If you are a non-Gulf Cooperation Council (GCC) national and plan to set up a business with a commercial or industrial license on the United Arab Emirates mainland, then yes, you will need a local sponsor as a business partner. However, if you are setting up in a free zone or your business activity falls under a professional services license, a local sponsor is not necessary.

If your business necessitates a local sponsor, Multi Solution is here to assist you. In this case, you will establish a mainland Limited Liability Company (LLC) where you retain 49% ownership while the local sponsor holds 51%. It’s important to note that despite the ownership distribution, profits are not divided in the same manner, and your local partner will have minimal involvement in the day-to-day operations of your company.

Finding a local sponsor in Dubai can be a challenging process for startups and new entrepreneurs. The local sponsor must either be a UAE national (also known as an Emirati) or a corporate entity wholly owned by UAE nationals and governed by a board of directors.