Dubai, like many other cities, has its own set of free trade zones. These are autonomous and unique business environments in the United Arab Emirates that allow international companies to own 100%. To set up a business in a free trade zone (FTZ), there is absolutely no need for a local sponsor. There is absolutely no need for a local sponsor.
Companies established in free trade zones cannot engage in trade in local markets. On the other hand, these free zones offer a 100% repatriation of profits and also have several exemptions and reimbursements. Foreign companies must pay annual fees to these local sponsors in order to use their services, and companies must also donate a certain percentage of their shares to these local sponsors. The Federal Supreme Council, which ratifies and issues federal laws such as the labor legislation of the United Arab Emirates, labor legislation, the registration of companies in Dubai and the immigration law of the United Arab Emirates, has legislative and executive functions.
Business formation consultants in Dubai, such as Business Link UAE, can obtain a professional services license for aspiring business entities. According to the law, to establish a limited liability company or firm in mainland Dubai, you must have a local sponsor who is a person from the United Arab Emirates and owner of 51% of your business. On the other hand, third-party fees are the fees of some companies that do not participate in the processes and that help us to do the same work that can be done without them. According to government regulations, foreign citizens who have obtained residency status can set up their own business in a non-free zone, but 51 percent of their company must be owned by a local citizen of the United Arab Emirates.
Corporate sponsors work in a similar way to individual sponsors, since these companies will own 51 percent of the company's assets and liabilities and will be responsible for the company. Another alternative was to start their business on the mainland with the help of a local sponsor in Dubai and the United Arab Emirates. If you're looking to start your own business in the United Arab Emirates but don't know where to start, you're in the right place. So do foreigners really need a local sponsor to start their businesses in the United Arab Emirates? The answer depends on the sector you want to enter with your business in the United Arab Emirates.