Can I open a company in Dubai without a sponsor?
A lot of people speak highly of when it comes to company setup in Dubai. Why do people give more credence to starting a business in Dubai? The UAE is filled with abundant opportunities that offer a lot of benefits for those who wish to open a company in Dubai.
However, a lot of perks come with a business setup in Dubai, yet a general question comes to the mind of every entrepreneur who wishes to start a business in Dubai: do they need a sponsor?
Dubai continues to draw business owners from all over the world to set up business in the area because of its strong economy. So for this purpose, a key consideration for foreigners was the need for a local sponsor.
Let’s dive deep into the information so you will get clarity on your question.
First, ascertain the local sponsor
A person or group is considered a sponsor when they get the company’s share in return for their assistance. Foreign entrepreneurs have always needed to get a local sponsor to open a firm in Dubai. And what is the sponsor’s unique role? A local sponsor, a national of the United Arab Emirates, ensures that your company abides by UAE laws and regulations. They also offer local networks and contacts. As a result, a share of the business’s profits goes to the sponsor.
Keep abreast of and adapt to frequent changes.
These days, you have to keep up with the frequent changes due to the rapidly expanding global business scene. Entrepreneurs who want to register a business should keep up with the most recent changes and legal requirements. To effectively navigate the constantly changing regulatory landscape, seeking advice from seasoned business consultants or legal specialists versed in UAE company rules can be quite helpful.
Unlock 100% ownership of your company with professional services support
Unlike a traditional local sponsor, a company setup consultant in Dubai focuses mostly on helping with government paperwork and does not own any shares in the company. A specialist with expertise in helping foreign and local enterprises establish their footprint in Dubai is known as a company establishment consultant.
Liberating entrepreneurs from a local sponsor through free zones
Due to Dubai’s increasing prominence as a worldwide commercial hub, local sponsors were considered important in Dubai. While many organizations have found success using this method, not all business owners have benefited from their strategic goals. So resulting from the state’s goal of expanding autonomy is the use of alternative business structures in free zones. International businesspeople can start local sponsoring corporations here without having to obtain foreign ownership.
Businesses from a variety of industries, including technology, media, and enterprises, are interested in this strategy.
A business heart that lies in Dubai
You can find sufficient information on this site to decide whether you should choose sponsors or not. While you can benefit from the sponsor’s help, there are certain disadvantages as well. So you should always rely on professional company consultants to open a company in Dubai without a sponsor. One company that can assist you with setting up your business in Dubai is Flyingcolour.
To learn more about how to do business setup in Dubai, book a free consultation with one of the Flyingcolour team advisors.
*Please note that this article has been published on 28/11/2023 in accordance with the federal policies and updates at the time of writing. For the latest info please talk to our consultant.
