With the liberalisation of the commercial companies law, a sponsor is now only mandatory in exceptional cases. In this regard, the term "sponsor" has various meanings which depend on the legal form and location of the company you wish to set up. Should you establish a company with limited liability (LLC) in the territory of the United Arab Emirates, the sponsor, if at all to be appointed, has to be a co-shareholder or the majority shareholder of the LLC, which depends on the activities to be conducted by the company. 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, if still required, 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 generally no longer required when establishing a dependent subsidiary of a foreign mother company (so-called branch) in the territory of the United Arab Emirates.
