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Local Sponsor Package Reassures Foreign Organisations setting up businesses in Dubai

2nd July 2020

Gateway Group Of Companies' Platinum Local Sponsor Package provides a reassuring solution for foreign organisations looking to expand their business into Dubai.

Limited Liability Companies (LLCs) remain one of the most popular business license types in Dubai accounting for 37% of all licenses issued behind sole trader licenses which are the most popular, accounting for 41% of the total. One the main reasons for their popularity is because it enables foreign companies to sell products in Dubai, which is not allowed under other legal structures, such as the Foreign Branch. However, LLCs generally require the foreign organisation to partner with a local sponsor holding 51% of the shares in the new Dubai company. And, this is where foreign companies get anxious. The thought of entering into such a partnership when they are only just starting to dip their toes into the water is a big risk, especially when they don't have lots of existing local Emirati connections with whom they have already established trust and reliability. How can they get around this problem and and have peace of mind?

Gateway's Local Sponsor Package provides peace of mind to foreign investors

Having been setting up companies for many years, I have experienced foreign companies rushing into the market to take advantage of opportunities, but not having sufficiently protected themselves either financially, operationally or both. This is in part due to their eagerness to establish their company in Dubai and also because they didn't know what questions to ask. Perhaps being misled by an aura of legitimacy - its very common.

My observations of being an ex-pat abroad are that we tend to congregate, network and do business with our own nationalities for familiarity. Therefore, Gateway set out to create a unique local sponsor package to address this, whilst ensuring that it meets the legal requirement that international companies expanding into Dubai must have a local sponsor that is 100% Emirati-owned.

Gateway Group created its unique Platinum Local Sponsor Package. It is 100% owned by a British national and his daughter (who have been granted the rare recognition of citizenship), and Western-managed, providing extra confidence to foreign companies, particularly British and Commonwealth-based organizations, wanting to expand their businesses into Dubai. Speaking the same language, understanding the same colloquialisms and sharing common values and beliefs provides trust and reassurance. As a corporate local sponsor, Gateway's Platinum Local Sponsor package provides foreign companies with security, protection and control of their Dubai businesses.

Gateway empathizes and shares your experiences

Gateway is run by British expats who have been through exactly the same process as your foreign business of moving to a new country, finding out how to do things, checking the regulations and ultimately investing our own money to set up our companies in the UAE.  We understand the anxiety of starting a business in a foreign country, as well as organising visas and work permits for expat employees and residence visas for their families. It is because we have done it ourselves that we insist on doing what is in our clients' best interests and why Gateway is known for being reassuringly honest.

How Gateway can help your organisation expand into Dubai

Your organisation can expand into Dubai quickly and efficiently, avoiding the complexity and bureaucracy of navigating government departments and sourcing local suppliers, so that you can focus on meeting your contractual obligations and having people on the ground here. Gateway specializes in helping foreign companies to achieve these goals and takes care of the entire company formation process.

For the avoidance of confusion and to be sharing correct information, I would like to highlight that the UAE has passed a Foreign Direct Investment Law which will allow up to 100% foreign ownership in 13 sectors in the UAE and avoid the requirement for having a local sponsor providing the criteria is met; however, at the time of writing, a number of aspects still needed to be finalised in terms of processes and approvals.

☎️ +971 600 567562


#GatewayToUAE #ReassuringlyHonest

Written by Jenny Hunt, Founding Partner & CEO

Gateway Group of Companies, Abu Dhabi & Dubai UAE


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Gateway Group Of Companies

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