Local Sponsor Services

Local Sponsor / Sleeping Partner for Business

Company formation in Dubai comes with a number of rules and regulations. The Dubai business setup can be divided into two:

The Dubai Mainland Company

Free Zone Company Formation

Starting a company in Dubai and operating a business in the Dubai Mainland area requires a local sponsor be compulsorily appointed. When a foreign investor setups a business in Dubai, the UAE legislation states that a local sponsor be appointed for representative dealings with the ministries and the government for getting the various paperwork done.

A local sponsor is an Emirati or a UAE national, who acts as your service agent for your business in the UAE and he usually acts as a sleeping partner of your company. Being a mandatory requirement, it’s a real, inevitable challenge for foreign investors to find the right local sponsor in Dubai, appropriate for their line of business.

Usually the local service agent has no particular role or interest in the business but is appointed for the sole purpose of liaising with the government departments and authorities to obtain labor and immigration approvals, visas and complete other necessary paperwork for the company. The local service agent is to be paid an annual fee for his services.


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