The UAE’s government continues to amend the business laws to provide increased assistance to ex-pats and foreign investors. The latest modification would also enable foreigners to enjoy 100% ownership in the mainland region if the concerned business meets the established criteria. However, you’ll need a local sponsor if your business doesn’t fall under this category and would have 51% shareholding in your company.
You might need to change your local sponsor in Dubai in case he/she isn’t accessible or unavailable to take care of their role in the legal partnership. Situations of dispute or discontent can also arise and if not resolved can lead to the court for settlement. The business consultants at Shuraa not only free you of the worries of how to change a local sponsor in Dubai but also help you in finding a reliable local sponsor in the UAE.
How to change sponsorship in Dubai?
Changing the local sponsorship is an unfortunate event, but you must do it to ensure that your business complies with the policies established by the government. Here are the steps you need to follow to amend your local sponsorship in the UAE:
1. Discuss with your existing sponsor
You can have healthy conversations with your current local sponsor to see if things can work out between the two parties. Try to clear any misunderstanding and put forth your side of the story to eliminate the root cause of trouble. You can part ways with the sponsor if you have reliability issues or other such concerns even after comprehending his point of view. However, you can save a handful of money and a lot of time if the disputes settle outside of court. Legal trials in the UAE follow strict guidelines, and there’s no certainty that you’ll get the verdict within the desired timeframe.
2. Involve other shareholders
There’s no guarantee that a healthy discussion would resolve your dispute with the local sponsor. Therefore, involve other shareholders in the matter to get their opinion before proceeding with the next steps. Remember, the UAE national has 51% ownership of your company, and the same is also documented as per the Company’s Law. It’s easier to remove the existing sponsor if all the members involved in the legal partnership agree upon the same. The legal advisors at Shuraa are trained professionals who can guide you on how to change a local sponsor in Dubai at an affordable cost.
3. Prepare the documents
All legal matters in the UAE require the involved parties to submit the mandatory documents to all the concerned authorities – be it the court or any other concerned jurisdiction. Ensure that you have a notarized MoA (Memorandum of Association), labor and immigration documents, etc. Moreover, all of these must be submitted within the specified timeframe to allow a smooth transition of local sponsors in Dubai. You don’t need to worry about how to change sponsorship in Dubai if you’re aware of the entire procedure and possess all the documents.
4. Approach the court
Once you’re done with all the above-mentioned steps, you need to approach the court to commence the transition of sponsorship. You’ll need to re-run the entire process if you don’t have the specified documents or there’s some other discrepancy that the court official points out. Furthermore, your current sponsor should also agree to the proposed change to legitimize these amendments in your company’s ownership status. The court official analyzes your submitted paperwork and issues a request for the regeneration of your trading license alongside other documents if he/she is satisfied with your submissions.
5. Find a reliable local sponsor
You can’t commit the mistake of partnering with an unreliable UAE national twice. The process involves financial overheads and disrupts your company’s normal functioning indefinitely. Therefore, you should collaborate with a trusted legal entity, and Shuraa Business Setup can help you with the same. We can become your silent or sleeping partner at a nominal cost so that you can enjoy 100% operational ownership of your business. Furthermore, we also provide end-to-end assistance in obtaining a trading license, opening a bank account, and much more.
Roles and responsibilities of a local sponsor in Dubai
Your local sponsor has a lot more responsibilities than having a 51% shareholding in your company. Local sponsors assist in:
- Procedures involved in bank account closure
- Settlement of outstanding debts (if applicable)
- Help in the license renewal process and translation work (in Arabic)
- Provide signature on behalf of the foreign business owner in several contracts and government applications
- Cancellation of employee’s labor status and employees work visa
- Provide their opinion on local law enforcement and suggestions that’ll help you grow your business in the UAE
Documents required to change your local sponsor in the UAE
The UAE’s government follows a strict policy when it comes to documentation and paperwork. Therefore, ensure that you’re aware of all the mandatory documents to avoid any last-minute hiccups. If you’re wondering how to change sponsorship in Dubai
- Notarized MoA (Memorandum of Association) between you and the local sponsor
- Labor and immigration documents
- Power of Attorney
- Receipts of annual sponsorship payment
- Cards, approvals, and other documents related to the local sponsorship agreement
Connect with Shuraa
It’s critical to collaborate with a reliable local sponsor because an unsupportive sponsor can cause a lot of trouble during company formation and might also disrupt your normal business functioning. Therefore, you should get in touch with Shuraa Business Setup and we’ll become your local sponsors in the UAE. We won’t take part in any of your business activities, so you can enjoy 100% operational ownership. Our business experts take pride in offering the most cost-effective business formation solutions in the UAE. So, all you need to do is connect with Shuraa and let’s get started with your dream venture in Dubai.
Click here to book a free consultation with us or call us at +971 44081900. You can also reach out to us on WhatsApp by dropping a message on +971 50 777 5554. For email assistance, mail your query at info@Shuraa.com.