The UAE is one of the most business-friendly destinations worldwide, which welcomes entrepreneurs to set up a business without any bias. However, finding a local UAE national who is genuine and agrees with your thought process is a tough thing for anyone coming from a different country. If you plan to set up a business in Dubai, Abu Dhabi, or any other emirate first thing is to look for a local national or a partner. Finding the right national or a partner is half the battle won, which ensures that you will have long and a healthy relationship in the time to come. It won’t be an exaggeration to say that selecting an appropriate local partner for your business will be a key ingredient towards making it is a success.
What is the role of a local partner or an agent in The UAE?
An ex-pat entrepreneur has two options when it comes to setting up a company in The UAE. He can either form a free zone or a mainland company.
As per The UAE Law if an entrepreneur is a Non-GCC national and plans to set up a Limited Liability Company in the mainland it is mandatory for him to have a local partner who is also referred to as an Emirati.
This law states that every UAE national entering into an agreement of local partnership with a foreign investor shall hold at least 51 percent of the shares in the company.
One needs a local partner in The UAE to function in accordance with the UAE Commercial Companies Law. However, having a local partner helps you to take advantage of the exclusive benefits of setting up a limited liability company.
Is a local partner or an agent required for your business in the UAE?
According to the prevailing laws, anyone who plans or wants to start an LLC company should partner with UAE nationals. It is compulsory for a mainland company under the Limited Liability Company structure to have a local partner in UAE.
The UAE offers a plethora of business options to an entrepreneur who is keen on starting a new venture in this country. However, some of the businesses such as real estate, contracting, general trading, cargo and logistics, fuel and petrochemical industries, cleaning equipment industries, textiles, jeweler business, cosmetic and perfume business need to have a local partner in UAE in order to function.
Finding the right UAE national local partner or an agent
If you plan to look for a UAE national as a partner or an agent please reach us for a detailed discussion and insight on how to find a UAE local partner who is trustworthy and loyal. If you have any query related to UAE National in Dubai or anywhere across the UAE then please feel free to contact us at +971 4 4542366 or mail your query at info(at)flyingcolour(dot)com, our business setup experts will provide all the necessary help and route you through it effortlessly.
*Please Note: This article was published on 24th March 2021. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent updates or changes.