If you want to establish a Dubai Mainland company, you will need a Local Service Agent or a Local Sponsor, who will share 51% in your business. Let`s first figure out, who are LSA and LS and what it is the difference between them.
A Local Sponsor is an Emirati national who will be partnering with you in your business, with 51% of the company shares. Local Sponsors do not usually involve in business operations and are just offering service in exchange for an annual fee to enable a foreign entrepreneur to open a company in Dubai mainland. As long as this person has 51% of your company`s shares, it is very important to find a partner, that you can fully trust.
A Local Service Agent is a UAE national and acts only as a representative and has no civil responsibility or monetary compulsions. He acts as a representative to enable a foreign entrepreneur to open a business in Dubai but will not have any legal interest in the operations, administrative, company profits, or assets. The foreign entrepreneur holds 100% company ownership and holds full power in business operations. Finding a reliable local service agent is not easy, but still very important, as he may assist you in some governmental procedures and other services.
