How to Get a Local Sponsor for Your Mainland Business Setup

When laying the foundation for your business in a mainland area, one of the key steps is finding a local sponsor. A local sponsor is typically a citizen of the country who holds a share in the business, usually 51%, if the business activity doesn’t qualify for full foreign ownership.

This applies to many business types during a Dubai mainland company set up, depending on the local laws and regulations.

Types of Local Sponsorship:

There are usually two main types of local sponsorship: individual and corporate. An individual sponsor is a local citizen, while a corporate sponsor is a company fully owned by locals. Some business owners prefer corporate sponsors because they often operate through professional service providers and follow formal business practices.

How to Start the Search:

The best way to begin is by speaking to other business owners who have already gone through the process. Their advice can guide you and help you avoid common mistakes. You can also reach out to consultants or legal firms that work with sponsors. These experts usually have long-standing relationships with trusted sponsors and can help match you with someone suitable.

What to Look For in a Sponsor:

Before you agree to anything, it’s helpful to meet the sponsor in person. Talk about what they expect, how involved they want to be, and what kind of support they can offer. In many cases, sponsors are not involved in day-to-day business operations, but it’s still important to build a relationship based on understanding and trust.

Legal Agreements and Transparency:

Every agreement with a sponsor should be clear and legally sound. Work with a legal advisor to draft documents that explain each party’s role, the fee structure, and any other terms you agree on. This step protects both sides and reduces the chances of disputes in the future.

How the Right Sponsor Can Help Your Business:

A reliable sponsor can be more than just a legal requirement. With the right connections and knowledge of local customs, they can offer advice and introduce you to helpful contacts. Their local presence can also improve your business’s reputation and help you adapt more quickly to the local market.

Choosing a local sponsor is one of the most important parts of setting up a mainland business. With the right support and a clear agreement, you can move forward confidently and start building a strong foundation for your business.