If you are looking to establish a new business in the UAE, specifically the mainland jurisdiction, then getting a local sponsor is imperative. This is in accordance with the UAE corporate laws and stands true primarily for industrial and commercial licenses.

A local sponsor is an Emirati or UAE local. This individual will own 51% of the stakes in the company, while the other 49% will be owned by the foreign owner. However, the local sponsor will not be an active member in the daily operations of the business.

Having a local sponsor is crucial when setting up a company in the UAE mainland.

The UAE recognizes several types of local sponsorships, including individual, corporate, and local service agents (LSA).

Requirements for incorporating a limited liability company

Below are the requirements for establishing an LLC on the mainland:

The company should be a non-offshore 

The company should be located in a non-free zone 

51% of shares for a local sponsor 

49% ownership and shares for foreign owner 

The Memorandum of Association should contain information that grants operational powers to the foreign owner/partners 

The nominee partner should be a UAE local or a company owned wholly by them