Business Setup in Dubai - Finding a suitable UAE National as local partner or local service agent is very important to setup and grow your business in Dubai.
UAE Nationals are permitted to have 100% ownership in all legal forms.
Expatriate investors are not allowed to have 100% ownership except in specified professional activities.
Where 100% ownership is not allowed for expatriate investors, a UAE National should be the majority (at least 51%) share holder .
The expatriate investor can own up to a maximum of 49% shares.
Where 100% ownership is permitted for expatriate investors, they should appoint a UAE National as Local Service Agent.
An LSA is appointed for a fixed remuneration as specified in the LSA agreement.
In an LLC, the profit sharing ratio may be different from share holding ratio.
Maximu 80% profit share for expatriate investors are permitted.
So, it is inevitable for expatriate investors to find a suitable UAE National as local partner or local service agent as the case may be.
For some activities, if you want to include a UAE National as partner, he must possess the specified qualification.
The major considerations while selecting a local partner is his reliability, dependability, qualification, reputation, ability and networking skills.
Mr. Baiju Masoodu is a Free Zone Business Setup Consultant. Our ‘corporate service firm’ can advise and assist you to set-up a business in Dubai and UAE Free Zones. For a free consultation & cost estimate, call me on: +971 50 214 1476 or mail me at: firstname.lastname@example.org