What is meant by a sponsor?

The term "sponsor" has various meanings which depend on the legal form and location of the company you wish to incorporate. If you are establishing a company with limited liability (LLC) with certain activities in the territory of the United Arab Emirates, the sponsor has to be the majority shareholder of the LLC. By contrast, the sponsor merely serves as a so-called national service agent for sole establishments and civil companies and has no authority to exert influence at partner or management level. In any case, a sponsor either has to be an Emirati national or a company with 100% of its shares held by Emirati nationals. A sponsor in form of a national service agent is no longer required when establishing a dependent subsidiary of a foreign mother company (so-called branch) in the territory of the United Arab Emirates.

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