Individual & Corporate Sponsorship Services Dubai UAE

ADDITIONAL CORPORATE SERVICESSponsorship Services (Individual & Corporate)

Wincore Advisory Group can assist you to regain and maintain 100% control over your business in respect of the LLC mandatory local 51% partnership requirement through gradual solutions by:

Introducing a reliable and trustworthy local national sponsor to hold 51% of your mainland LLC shareholding in confidence under side agreements compensated through a “Fixed yearly Sponsorship Fee”.
Establishing a mainland corporate sponsor where the involvement of the mandatory local national individual sponsor will be highly mitigated and limited under side agreements. The Corporate Shareholder can also act as the local services agent where a local shareholder is not required – for example, for a Professional License, Branch or Representative Office; or,
Establishing a common law corporate structuring held by more sophisticated holding entities located in free zones which will avoid latter sponsor’s involvement in the business, the related sponsor’s succession planning issues, sponsor’s claim of company’s dividends, and the fluctuation of the sponsor fee to act as sponsor.

If you are a foreign national looking to set up a Mainland LLC Company in Dubai, then local sponsorship is mandatory. The term ‘local sponsor’ refers to a local partner who is a locally-residing UAE national mandated to own at least 51% of the shares of the company. The local partner vouches for your trustworthiness to allow you entry into Dubai for business, visit, or employment. There are 3 types of local sponsorships available for setting up a business in Dubai, namely Corporate Sponsorship, Individual Sponsorship, and Local Service Agent.

What is Corporate Sponsorship?

In Corporate Sponsorship, the corporate sponsor is a UAE national company and not an individual UAE citizen. This UAE-based company is usually owned by local nationals who hold 51% of the shares and liabilities of a company owned by a foreign investor. Corporate sponsorship option is one of the most popular sponsorships for Mainland LLC Company Set up in Dubai or Mainland Company Restructuring. The corporate sponsor holds a 51% stake in the business. Corporate sponsorship helps the foreign investor regain and maintain the 100% of his company and to have a very clear structure that provided the utmost security and legal protection possible.

Case Study:

Strengthen the investor’s control over the 51% local shareholdings of his Mainland LLC Company – Using Wincore Corporate Sponsorship Services to establish a common law corporate entities layer.

Current Business Structuring

https://wincoreadvisory.com/wp-content/uploads/2020/02/Picture1.jpg

New Business Structuring Or Restructuring

First degree of structuring – More confidential and sophisticated
structuring are possible.

Outcome:

Choose the Wincore Corporate Sponsorship Service; Gold or Platinum Packages for a higher degree of structuring.

This structuring deploys its efficiency within a common law jurisdiction – under the supervision of its own Regulatory authorities and Courts- isolated from the UAE mainland laws and regulations while being in compliance with UAE Federal Law

The Foreign and UAE national shareholdings in the UAE mainland LLC being held through a DIFC entity will allow a higher level of flexibility and assurance by subjecting the risk mitigation agreements over the shares of the DIFC Prescribed Company (PSC) to a UAE common law jurisdiction with its own courts which allows:

Higher investor protection through enforceable risk mitigation agreements (pledge of shares deed, share option agreement and power of attorney);
Isolation of the holding structure from the commercial one;
Uplifting to a more sophisticated jurisdiction in terms of corporate tools and functioning;
Granting access to more sophisticated contractual and structuring environment;
Smooth transfer of shares procedure (not to be before notary public);
Sharia law and succession risks mitigation;
Additional high added value tools are to be implemented in this risk mitigation structuring (available on demand);
Exiting from the heavy legalisation and notarisation costs (unlike foreign IBC used or corporate actions are executed).

* The DIFC PSC (established by the DIFC Law No. 5 of 2019 in October 2019 to replace Intermediate Special Purpose Vehicles (ISPVs) and Special Purpose Companies (SPCs)), identically to the ADGM Special Purpose Vehicle, is to be established for holding purposes (non-operating purposes) under prescribed conditions. It could use the registered address of a DIFC registered agent. Qualifying applicant who will be allowed to incorporate could be the founder of a DIFC Foundation. The Economic Substance regulation must be complied with: substance could be demonstrated through having a resident director, registered office, accounting and secretarial services being outsourced to a local services provider.

Wincore Advisory Group’s structuring team will advise you on the best structuring to establish your UAE presence and reach your objectives whilst maintaining the highest degree of control over your business and confidentiality. Wincore Advisory Group’s structuring team will advise you also on related capital raising planning, tax structuring and succession planning in a Sharia Law environment. Call +971 4 221 2602 or email us on [email protected] to schedule a free consultation with one of our Corporate Advisors today!