Secure 100% Control of Your Mainland Business — Partner with a Trusted Local Sponsor
When setting up your business within mainland Dubai, you will often be required to have a local corporate sponsor for certain Commercial or Industrial activities. In the Free Zones, they allow for 100% foreign ownership, but the mainland company formation requires a local UAE national or a locally owned company to act as your sponsor, but only in certain sectors. In those sectors, the local sponsor must have 51% of the legal shares. The foreign investor has 49%. However, through structured nominee shareholder agreements and side- agreements, you can legally maintain 100% control over your business operations, financial affairs, and decision-making power without compromising your position.
This is an effective and compliant means to access Dubai's mainland economy while protecting your interests. It gives you the ability to expand throughout the UAE, bid for government contracts, open branches, and significantly increase your flexibility in business model.
At DubaiSetupNow, we offer a transparent, safe, and risk-free local corporate sponsor designations for almost every business activity. Our Corporate sponsorship solutions will be structured legally, managed professionally, and irrevocable documentation will guarantee your business remains fully yours—with no interference or share of profits from the sponsor. Your corporate sponsor can be your strategic partner, but not just a legal requirement
What Is a Local Corporate Sponsor in Dubai?
A local corporate sponsor in Dubai is a UAE owned company (100% Emirati owned) with 51% of the shares in a mainland business while the foreign investor has the remaining 49%. This arrangement does exist for certain commercial and industrial business activity in the mainland. Unlike the individual sponsorship, a corporate sponsor is a registered company rather than a person. This provides a more professional relationship legally binding contracts and has nominee arrangements that allow for foreign entrepreneurs to exercise full control over the company.
Who Needs a Local Corporate Sponsor in Dubai?
Not all business types require a local sponsor. If you're setting up in a Free Zone or offering professional services, you can enjoy full foreign ownership. However, a local sponsor is mandatory for certain commercial activities on the mainland such as:
- General trading and retail businesses
- Construction and contracting companies
- Real estate brokerages and property management firms
- Automotive repair, transportation, and freight services
- Manufacturing and industrial businesses
DubaiSetupNow helps you determine whether your business needs a sponsor, and if so, we offer reliable corporate sponsorship solutions with no interference in your operations.
What Are the Benefits of Choosing a Corporate Sponsor Over an Individual?
Legally Binding Corporate Contracts
A corporate sponsorship comes with formal documentation like MOA (Memorandum of Association), side agreements, and nominee contracts: all drafted and notarized by lawyers. This makes the sponsor’s role very clear and allows you to put your mind at ease about total operational control of your business. A legally binding corporate contract gives you some measure of legal and long-term security.
More Structured and Less Risky
Corporate sponsorship opportunities are constructed legally and governed by structured agreements, which is a significant contrast from dealing with individual sponsors. Everything is recorded in writing, which provides both parties with professionalism and documentation, which documents the agreement to provide some protection from future conflict. You will have clarity when running your business that will isolate you from sudden and unforeseen controversies & liabilities.
No Interference in Business Entry & Exit Activities
Your corporate sponsor will not be involved in your day-to-day business operations, finances with clients, client relationships or any overall business strategy. With a nominee arrangement, you are the sole or dominant manager of the operations giving you the independence of a sole trader while satisfying your legal ownership obligations.
Sponsor Stability Regardless of Personnel Changes
Corporate sponsorship has a substantial advantage of being completely tied to a company and not a person meaning when a shareholder or manager in a sponsor company retires, resigns or transitions, the sponsorship is still solid and unbroken.
Specific Dispute Resolution and Legal Remedies
Corporate sponsors provide detailed dispute resolution provisions in the event there are differences of opinion. These may include UAE Court jurisdiction clauses, arbitration provisions, and sponsor exit clauses to safeguard your investment and business interests.
Better Professional Standing For Banking and Regulatory Approval
Having a well-respected corporate sponsor helps in securing a corporate bank account, obtaining government approvals, and/or dealing with government regulators. It elevates your profile, credibility, and trust factor with institutions and their clients.
Can I Retain 100% Control With a Corporate Sponsor?
Yes. With our nominee service agreements, you retain 100% operational, financial, and managerial control of the business. Our agreements clearly state that:
- The sponsor has no access to business decisions
- All profits are retained by the foreign owner
- Power of attorney and decision-making rights remain with you
- A fixed annual sponsorship fee is charged—no revenue sharing
We draft these agreements in full compliance with UAE legal standards, reviewed by professional legal consultants.
What Happens If I Want to Exit or Transfer Ownership?
We offer flexible exit and transfer options in case you want to:
- Sell your business
- Bring in a new partner
- Transfer sponsorship
- Upgrade to 100% ownership if laws change
Our team handles all restructuring and documentation smoothly, ensuring no risk or dispute arises during the process.
How Do You Legally Protect Yourself with a Local Sponsor?
MOA Drafting Services
The MOA is the legal document recording your company structure, shareholding structure and partner relationships. In mainland Dubai there is the required legal 51%-49% split ownership. We write the MOA in a way that complies with UAE law, while also protecting your right to operate through internal agreements
Beneficial Ownership Agreement
These are private legal documents that are signed alongside the MOA. The side agreements will confirm that you (the foreign investor) are the real and actual sole beneficial owner of the company and that the local sponsor is merely a paper owner of the shares with no right to any profits, operations or decision-making.
Business Power of Attorney
A power of attorney (POA) is a notarized legal instrument that gives you sole dominion in your business on every business decision, all financial bank accounts, hiring and employment, and anything else that occurs under normal day to day operations. A POA will protect you from having to get the sponsor’s approval for any day-to-day business aspects allowing you full control of your company.
Sponsor Limitation Agreement UAE
Included in the side agreement or POA, these clauses legally prohibit the sponsor from interfering within your business. This provides a clear expectation about how your corporate sponsor is now only a silent partner with no involvement in operations, finances, or management to lower your business risk.
Sponsor Deal at Fixed Rate
Your corporate sponsor is instead paid a fixed annual amount up front and is not entitled to any takeaway profit from actual revenue or expense. This gives the transparency of knowing what to expect financially, has no hidden fees, defines specific payment clearly to the sponsor and assures you that whatever is paid is clear, helping retain your profits while complying with legal obligations.All documents are signed and notarized, providing you full clarity and control.
How Do You Legally Protect Yourself with a Local Sponsor?
MOA Drafting Services
The MOA is the legal document recording your company structure, shareholding structure and partner relationships. In mainland Dubai there is the required legal 51%-49% split ownership. We write the MOA in a way that complies with UAE law, while also protecting your right to operate through internal agreements
Beneficial Ownership Agreement
These are private legal documents that are signed alongside the MOA. The side agreements will confirm that you (the foreign investor) are the real and actual sole beneficial owner of the company and that the local sponsor is merely a paper owner of the shares with no right to any profits, operations or decision-making.
Business Power of Attorney
A power of attorney (POA) is a notarized legal instrument that gives you sole dominion in your business on every business decision, all financial bank accounts, hiring and employment, and anything else that occurs under normal day to day operations. A POA will protect you from having to get the sponsor’s approval for any day-to-day business aspects allowing you full control of your company.
Sponsor Limitation Agreement UAE
Included in the side agreement or POA, these clauses legally prohibit the sponsor from interfering within your business. This provides a clear expectation about how your corporate sponsor is now only a silent partner with no involvement in operations, finances, or management to lower your business risk.
Sponsor Deal at Fixed Rate
Your corporate sponsor is instead paid a fixed annual amount up front and is not entitled to any takeaway profit from actual revenue or expense. This gives the transparency of knowing what to expect financially, has no hidden fees, defines specific payment clearly to the sponsor and assures you that whatever is paid is clear, helping retain your profits while complying with legal obligations.All documents are signed and notarized, providing you full clarity and control.
Licensing Help from Sponsor
Can a Local Sponsor Help with Licensing and Approvals?
Yes. Having a corporate sponsor from DubaiSetupNow also helps speed up licensing, renewals, and external approvals with:
Municipality and Civil Defence
Trade License Authorities
Industry Regulatory Bodies
Why Choose DubaiSetupNow for Local Sponsorship?
At DubaiSetupNow, we offer a legally compliant and fully secure corporate sponsorship service which allows you to start your mainland business with peace of mind. All of our corporate sponsorship packages have annual transparent costs, and absolutely no hidden costs, commission or interference in your operations. Obviously we offer legally binding nominee agreements, which are the legal terms and provisions defining that you are the full beneficial owner of your business. Put simply, you own all the control, profit and decision making!
Our multilingual service team (English, Arabic, Hindi and Urdu) takes care of all things related to setup; legal, compliance and documentation, trade license, visa processing and business bank account. With the ongoing complexity of startup in the UAE we setup your incorporation in a compliant manner while focusing on your long-term growth and success in the UAE. We don't just meet the requirements for your setup in UAE, we protect your future
Can I Convert to 100% Ownership in the Future?
Yes. As UAE laws evolve, many business activities on the mainland now allow 100% foreign ownership. DubaiSetupNow monitors these updates and will help you convert your license when eligible by:
- Reapplying under new rules
- Removing the sponsor via legal amendments
- Changing your MOA and license documents
- Notifying government authorities and banks
We ensure smooth transitions whenever changes to ownership laws apply.
Discover Frequently Asked Questions from Our Support
No, not for all businesses. Local Corporate Sponsorship is compelled only for specific commercial or industrial activity undertaken in the mainland jurisdiction. For example, for a Freezone company or Professional Services you can still retain 100% ownership.
At DubaiSetupNow, we have the experience to identify whether your activity requires a local corporate sponsorship and we can provide safe, structured sponsorship solutions if needed.
Yes, there are ways to retain 100% operational and financial control of your business on the mainland through side agreements, powers of attorney, and non-interference clauses. The sponsor is a legal requirement on paper only, and will have no access whatsoever to your business and its decisions. We ensure this is protected and clearly defined by law.
An individual sponsor is an Emirati national individual, and a corporate sponsor is a UAE owned company. Corporate sponsors provide legally more protection, continuity (different people could be involved), and be lower risk. Corporate sponsors give a more structured connection regarding legally documented agreement terms, including dispute resolution wording.
A nominee agreement is a legally binding contract that states that the local sponsor holds the 51% shares only as a formality and has no control or claim over the profits or decisions of the company. Nominee agreements allow the foreign investor to remain the intended beneficial owner of the company and still exercise control over operations and management.
Yes. If UAE laws permit you to own 100% of your activity at a later point, DubaiSetupNow will assist you to remove the sponsor by making the legal amendments required. DubaiSetupNow will help restructure your MOA, notify the proper authorities, update your trade license, etc. to provide a seamless ownership transition.
No. Every corporate sponsorship in UAE with DubaiSetupNow comes with a non-interference agreement. This means that your sponsor will not be able to have access to your bank accounts, revenue, clients, employees, or contracts allowing you full financial and operational privacy and independence.
No. Our corporate sponsor is a silent partner, and they will not perform any aspect of your operations! You operate your company on your own; the sponsor's part is formal and only necessary for DED requirements as determined by the legal documentation, which clearly indicates the separation from your operations.
Nothing changes for your business. This is the beauty of corporate sponsorship - the sponsorship is tied to the company and not individuals; even with a change in management of the sponsor company, your sponsorship will not change and you will have continuity and long-term security.
Yes. An established corporate sponsor helps obtain approvals from the Dubai Department of Economic Development (DED), municipality, civil defense, and other regulatory authorities faster. It provides some comfort if you need to open a bank account or otherwise deal with government-related processes.
The business registration can mostly be completed in a 2-5 business-day period in most Free Zones and 3-5 working days for Mainland setups and 5-7 days for Offshore companies. We ensure a smooth and quick process from beginning to end.
Launching a Mainland Business in Dubai?
Secure Your Future with a Trusted Corporate Sponsor
Gain access to Dubai’s booming mainland economy without losing control. With DubaiSetupNow, you get:
100% operational authority, no interference, and legally secure nominee sponsorships — all with transparent fees and end-to-end support.
Whether you’re entering trading, real estate, manufacturing, or construction, our corporate sponsorship model ensures you’re compliant, protected, and in control from Day 1.
Contact us or visit Dubaisetupnow today and start your journey in Fujairah Creative City!
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