FIND A RELIABLE LOCAL OR CORPORATE SPONSOR IN DUBAI
Setting up a mainland company in Dubai offers unmatched opportunities, but it’s important to choose the right ownership structure. Most business activities today allow 100% foreign ownership, while a limited number of regulated sectors still require a local sponsor or Local Service Agent (LSA).
Do You Need a Local Sponsor for Your Dubai Mainland Company?
For most entrepreneurs, a local sponsor is no longer required. Since the 2021 changes to the Commercial Companies Law, 100% foreign ownership is permitted in the majority of Dubai mainland activities.
Only a limited number of strategic or regulated sectors still require a UAE national or corporate nominee sponsor—for example, activities linked to energy, defence, telecom, and certain professional services.
If your activity does fall into this category, Gulf Corporate Services provides secure corporate nominee sponsorship. Unlike the old 49/51 ownership model, our contracts guarantee that you retain full operational control, profit rights, and decision-making authority, while meeting compliance requirements.
Getting a sponsor in Dubai can be complex, especially for first-time investors. That’s where GCS ensures a transparent, legally binding partnership, giving you peace of mind from day one.
Corporate vs Individual Sponsor — Which Is Safer?
Choosing the right type of sponsor matters when one is required.
| Factor | Corporate Nominee Sponsor | Individual Sponsor |
|---|---|---|
| Continuity | High – entity endures | Person-dependent (retirement, travel, life events) |
| Governance docs | Robust contracts pack | Varies; often minimal |
| Bank comfort | Predictable – banks recognize nominee firms | Case-by-case, may trigger extra KYC |
| Replacement risk | Low – company continues regardless of people | Higher risk if individual unavailable |
Result: A corporate nominee sponsor is generally safer and more reliable for long-term businesses, while individual sponsors are sometimes used for very small or short-term ventures.
Contracts for Local Sponsorship in Dubai, How to Protect Your Business
If a sponsor is involved, the key to protecting your business is a detailed nominee agreement. The contract should clearly set out:
- Management & control – confirming daily operations are handled by you.
- Profit allocation & distributions – ensuring profits flow to your account.
- Voting & reserved matters – defining decisions the sponsor cannot override.
- Exit/transfer & valuation – rules for selling, transferring, or exiting.
- Dispute resolution & governing law – providing a clear legal framework.
We draft contracts that give you full confidence that your rights, profits, and control are secure.
Costs & What’s Included
Costs vary depending on your activity, company size, and visa requirements, but we always provide an itemised, fixed-fee quote before you commit.
- Sponsor retainer (if required): AED 10,000 – 20,000 per year.
- Legal documentation pack: AED 5,000 – 12,000 (MoA, nominee agreements, side contracts).
- Government & PRO fees: itemised for licensing, approvals, and immigration.
- What’s included: drafting, execution, renewals support, and ongoing advisory.
- What’s extra: special approvals, notarisation, translation, or court attestation if needed.
Step-by-Step Process for Local Sponsorship & Mainland Company Setup in Dubai
Setting up with or without a sponsor follows a clear process:
- Activity & eligibility check – confirm if you qualify for 100% ownership or require a sponsor.
- Choose your structure – LLC, branch, or professional license, with corporate or individual sponsor if applicable.
- Draft & sign contracts – side agreements, MoA, and nominee contracts prepared.
- Licensing & approvals – DET and any external regulator clearance.
- Immigration & establishment card – unlocks visas and banking.
- Visas & residency – investor and employee visas processed.
- Banking & KYC – prepare a compliant file for smooth account opening.
Banking & KYC for Sponsored Structures
Banks in the UAE scrutinize nominee arrangements carefully. To build trust and avoid delays, prepare a strong KYC package:
- Ultimate Beneficial Owner (UBO) chart showing your control.
- Nominee contracts pack confirming sponsor has no operational rights.
- Business model one-pager – what you sell, who your clients are, expected turnover.
- Sample contracts/invoices to evidence genuine trade.
- Expected transaction volumes and counterparties.
Common red flags: sponsor shown as the “operator,” unclear financial substance, or mismatch between licensed activity and banking purpose. We package your application to satisfy compliance teams from the start.
Why Choose Gulf Corporate Services for Local & Corporate Sponsorship in Dubai Mainland
Choosing the right sponsor is one of the most important decisions when setting up a Dubai mainland company. At Gulf Corporate Services, we make sure your sponsorship is not just a legal requirement, but a secure, transparent, and growth-focused partnership.
Experience You Can Rely On
With over a decade of experience in Dubai mainland setups, we’ve guided entrepreneurs across trading, consultancy, logistics, healthcare, and other sectors. Our deep knowledge of UAE regulations helps you avoid compliance pitfalls.
Corporate Nominee Sponsorship for Long-Term Security
Where a sponsor is required, we use a corporate nominee model rather than depending on individuals. This ensures continuity, lowers risks, and gives investors peace of mind.
Protective Contracts That Safeguard Your Control
Every sponsorship agreement comes with a robust legal framework that protects your operational control, profit rights, and exit options. We ensure your business remains bank-ready and compliant.
Complete Mainland Setup Support
Beyond sponsorship, we handle licensing, approvals, visas, and banking assistance—so you get a one-stop solution for Dubai mainland business setup.
At GCS, our goal is simple: to help you set up with confidence, keep control of your company, and grow securely in Dubai’s dynamic market.
Get In Touch Free Consultation
+971 526 50 6950
FAQs on Local & Corporate Sponsorship in Dubai
Our team of experts addresses common questions from people worldwide regarding company formation in the UAE.
Do I still need a sponsor for my Dubai company?
Not usually. Most business activities now allow 100% foreign ownership. Only certain regulated sectors require a sponsor or LSA.
When is an LSA used instead of a sponsor?
For some professional licenses, an Emirati acts as a Local Service Agent (LSA) without owning shares, handling government liaison.
Can I switch to 100% ownership later?
Yes. If your activity becomes eligible, we can restructure at renewal or via a share transfer.
How much does a corporate nominee cost?
Corporate sponsor retainers typically range from AED 10,000 – 20,000 per year, plus legal fees for protective contracts.
Will banks accept nominee structures?
Yes—provided contracts are transparent and your UBO/control is clear. We align the documents to meet banking KYC standards.