Afdal Group

Local Sponsor Services in Dubai

The evolving landscape of local sponsorship in the UAE illuminates the region’s commitment to fostering international business partnerships. Why local sponsorship remains pivotal for foreign investors is quite straightforward:

it’s about trust, guidance, and seamless integration into the Emirati business culture. The Afdal Setup Business Group, a prominent name in the region, enhances the  Local Sponsor service in Dubai by offering foreign investors a direct bridge to the local market.

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Their service ensures that businesses resonate with local dynamics while adhering to the UAE’s regulations. With Afdal Group’s expertise, this service transcends mere legal requisites—it becomes a strategic alliance, offering both familiarity and ease for businesses entering the vibrant Dubai marketplace.

Decoding Local Sponsors: An Overview

Afdal Group’s long-standing presence in the UAE means they fully comprehend the essence of local sponsorship. In the context of the UAE, a  Local Sponsor Service in Dubai is typically either an individual from the country or a business entity completely owned by someone from the UAE. With Afdal Group as a guiding force, this trustworthy relationship becomes central to many business ventures, especially for those from outside the country looking to set up shop in the UAE.

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Local Sponsors – A Snapshot table




A person from the UAE acting as the sponsor

Corporate Entity

A business fully owned by someone from the UAE

The Legal Framework Surrounding Local Sponsorship

Leveraging their knowledge of the local regulatory environment, Afdal Group emphasizes how the laws in the UAE place great importance on local sponsorship agreements. The UAE Commercial Companies’ Law is a primary guiding force in this domain.

With Afdal Group’s insights, businesses can easily understand the significance of the Memorandum of Association (MoA) and the roles of each party. Moreover, the Power of Attorney (POA) serves as a protective measure, ensuring foreign investors feel secure in the region’s business ambiance.

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Key Legal Documents in Local Sponsorship that you have to know are here in this table.




Outlines the roles and responsibilities of all involved parties


Acts as a safeguard for the rights and interests of foreign investors

The Roadmap to Business Establishment: Role of Local Sponsors

For those aiming to establish a business in Dubai Mainland or the broader UAE, Afdal Group highlights the essence of having a local sponsor. Their expertise proves invaluable, especially for Limited Liability Companies (LLCs), in building a productive relationship between foreign investors and local sponsors.

Mastering the Art of Selecting the Ideal Local Sponsor Service in Dubai

With Afdal Group’s guidance, businesses can navigate the intricate process of selecting the right local sponsor in the UAE’s business ecosystem. Emphasizing open and transparent communication, they advise building a strong relationship from the get-go.

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Their professionals ensure a well-drafted agreement with clear terms, recommending a thorough perusal of documents like the Memorandum of Association. And before formalizing any partnership, Afdal Group ensures all necessary documentation, such as the Power of Attorney, is in place to prevent potential disputes.”

Corporate Sponsorship: A Closer Look

Corporate sponsorship, as facilitated by entities like Afdal Group, is an excellent option for businesses not keen on partnering with individuals. By choosing a corporate sponsor like Afdal Group, businesses aren’t just teaming up with a corporate entity, but they’re partnering with a seasoned expert who knows the intricate ins and outs of the UAE’s business world.

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These sponsors, especially Afdal Group, bring more than just sponsorship — they offer a profound depth of experience, industry insights, and localized knowledge.

Benefits of Corporate Sponsorship are here in this table.




Being entities, corporate sponsors like Afdal Group have a consistent presence.

No interference in daily operations

Even if they hold many shares, they typically don’t get involved in daily tasks.

Detailed Agreement Formulation

With experts from Afdal Group, these agreements are detailed and aim for clarity for both parties involved.

Local Service Agent (LSA) vs. Local Sponsor: Key Differences

While LSAs and local sponsors might seem similar at first glance, they serve distinct roles. Afdal Group ensures that businesses understand these distinctions. An LSA mainly assists with administrative tasks, especially in liaisons with government entities. In contrast, a local sponsor, especially when partnering with a group like Afdal, assumes a more foundational role in the company, offering deeper involvement and guidance.


Local Service Agent

Local Sponsor

Ownership of Shares


Often, especially in LLCs



More comprehensive, especially with a partner like Afdal Group

Duration of Agreement

Typically yearly

Can differ, especially when tailored by Afdal Group based on mutual discussions

The Future of Sponsorship in the UAE: What Lies Ahead?

With the business environment in the UAE perpetually evolving, the role of local sponsors is also adapting. Afdal Group, always at the forefront of these changes, recognizes a growing trend favoring corporate sponsorships, offering businesses a more stable and predictable partnership. However, individual sponsorships, with their unique nuances, continue to hold value.

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All things considered, the Local Sponsor service in Dubai, especially when facilitated by trusted partners like Afdal Group, stands as a cornerstone for foreign businesses in the UAE. Afdal Group’s services in this domain go beyond mere administrative aid. They ensure a harmonious blend of global aspirations and local expertise, effectively bridging the gap. In the final analysis, understanding and leveraging services offered by Afdal Group becomes paramount for any business aiming to flourish in Dubai’s dynamic market landscape.


Now, we are going to share some frequency questions in this topic that can be your questions. Find their answers to know more about this topic:

  1. What is a Local Sponsor service in Dubai?

A Local Sponsor service in Dubai refers to an individual or corporate entity fully owned by a UAE national who sponsors foreign businesses looking to establish themselves in the Dubai mainland.

  1. Is having a Local Sponsor for setting up an LLC in Dubai mandatory?

No, foreign investors can own 100% of the company shares, and appointing a UAE National Sponsor as the primary shareholder is not mandatory.

  1. What role does a Local Sponsor in Dubai play in daily business operations?

A Local Sponsor in Dubai primarily liaises with government departments for services like obtaining employee visas, license approvals, and other administrative tasks. They do not typically engage in the company’s daily operations.

  1. How does Corporate Sponsorship differ from individual sponsorship in Dubai?

Corporate Sponsorship involves partnering with a corporate entity fully owned by UAE nationals, whereas individual sponsorship involves partnering with a UAE national directly. Corporate sponsors often bring added expertise and stability.

  1. Are there alternatives to having a Local Sponsor when setting up a company in Dubai?

Yes, certain company structures in the UAE, such as free zones or foreign branches, may require appointing a Local Service Agent (LSA) instead of a local sponsor. LSAs assist with administrative tasks but don’t hold company shares.