Nominee Partner (Sleeping Partner) in LLCs
As per the UAE Companies Law and UAE Civil Law, to begin a company with limited liability in a mainland, that is, a non-offshore company in a non-free zone, a margin of 51% local equity is a must. Although foreign equity in such a company not exceeding 49%, the profit distribution from it can be mutually agreed upon by concerned parties. Complete operational powers can also be acknowledged to the foreign partner(s) or a third party on the memorandum of association. Only UAE nationals or companies owned wholly by UAE nationals may be regarded for being nominee partner and paid a lump sum amount per year.
Local Service Agent
Department of foreign companies and civil companies (single owner of a partnership) with foreign investments must have a local service agent designated to comply with the guidance. These agents do not have any share in the firm also are not normally included in the operations of the company and are paid a lump sum fee per annum - see what is the normal sponsorship fee
Normal Market Practices
Sponsors normally do not interfere in any of the Company’s activities. Despite operational powers are being vested with the managing director/manager; local sponsors still holds power to sign on Immigration and Labour related affairs of the company. As there is usually no restriction on the number of companies they can sponsor; some UAE nationals are the sponsors of hundreds of companies.
Our corporate nominee sponsorship wipes out all the above issues.
Sponsorship Fee Calculator
We offer highly professional accounting services at a reasonable price in the UAE. Do undertake our sponsorship fee calculator on the right to get an estimate of the price of local sponsorship services.
Disclaimer: The rate is estimated not based on any official data but what we charge as sponsorship fee and what we have learned from the market.
RVG offers corporate nominee services sponsorship for the same rate.
Corporate Nominee Sponsorship
Corporate nominee sponsorship can be availed by all LLC across the UAE. The sponsor in such a case should be a corporate entity rather of an individual.
The entity that acts as the nominee is built with a board of directors and holds power of attorney to act on behalf of the Company.
Thus, from the standpoint of corporate governance, for transparency and other factors, this implies sundry benefits for a foreign party, one of the most important ones being succession planning. Companies, while joining the market, often worry about the accountability of a local partner – as to the ramifications of the local partner changing his/her mind. With a corporate entity, the contractual terms still hold, thus imparting more robustness to the arrangement vis-à-vis having an individual national as the local partner. A nominee arrangement shall be executed.
Note: Corporate nominee sponsors can work only for LLC - and not for branches of foreign companies or civil partnerships.
We, at RVG, handle all your local sponsor related requirements proficiently, so you can concentrate on your business growth! Reach us today for our services in the UAE.