Choosing a Local Sponsor? 5 Things That Will Help You Make a Well-Informed Decision
If you are an entrepreneur who is planning to set up your own business in Dubai mainland, then foreign ownership is one of the biggest challenges you might face. It is because running a commercial or industrial set up in the UAE mainland requires a local sponsor. This is why foreign entrepreneurs who intend to run their business in Dubai, Abu Dhabi and elsewhere in the UAE, are advised to do their research and figure out why they need a local sponsor for their company formation. They must have knowledge and clarity about the benefits of taking this action and what consequences they will face if they don’t hire them.
Keep in mind that if you are planning to run commercial, industrial, and trading activities in Dubai, then it is compulsory to find a local sponsor for your business setup in Dubai. If you are wondering how to choose the best local service agent for your company and what factors you should keep in mind. Here are a few considerations that will help you make the right decision.
- Check the Background of a Local Sponsor
Before hiring a local sponsor, make sure he is living in Dubai. If the local sponsor agent is not a resident of Dubai, then it will make it difficult for you to complete the documentation process. It is also advised to check the background of his family, as choosing a local sponsor for your company from a well-reputed family will be a plus point and will provide you with many benefits. Also, check the qualification status, fee structure, service details, and other important factors before hiring a local sponsor for your company formation in Dubai.
- Be Aware of High-Profile Local Sponsors
Local sponsors help foreign entrepreneurs to establish their businesses in the UAE. They don’t support businesses with their operations and other business tasks and don’t offer their services as a local representative. The UAE is filled with high profile and celebrity sponsors who claim they are the right choice for your business and offer networking opportunities due to their fame and status. If you fund such local sponsors, it is advised to do your research and then decide whether they are the right choice for your business setup.
- Research Carefully What They Offer
Foreign entrepreneurs are easily impressed by high-profile local sponsors and the services they promise. They entice entrepreneurs by offering claims that they open doors, create contacts, and help them achieve their business goals. Entrepreneurs are advised to ensure how they will fulfill their promises. Signing a contract is the safest option to ensure they will help you in company formation, registration, license acquisition, and other important steps that are required for structuring your company.
- How They Deliver their Services
When it comes to choosing a local sponsor for your company formation in Dubai, it is important to make sure how the local sponsor agent will offer their services. How can you access the individuals once you finalized the deal and when you really need their expertise? It is critically important for business owners to understand how they will deliver their services and ensure their timely availability. Tell them to explain their sponsorship and visa procedures, documentation services, banking, and financial assistance, and other services they promise you to deliver. Once you have a clear idea about how they will help your business, it will help you avoid unnecessary delays in the documentation and other important business procedures that can impact financially and operationally.
- Determine the Fee Structure
Okay, it is an important factor that you should keep in mind while choosing a local sponsor for your Dubai-based business. The financial remuneration solely relies on the number of services they provide. Corporate local sponsors will assess the risk and liabilities of the activities of your business. When you have a clear idea of their annual charges and fee structure, it will help you to set aside the budget for their services and provide you with peace of mind.
All in all, finding the local sponsor in Dubai is one of the best decisions that you can make being a responsible business owner. Though choosing the right local sponsor for your business seems daunting but following the above-cited pointers will help you get the best local sponsor for your business.
