Definition
Table
| Term | Pronunciation | Category |
|---|---|---|
| Emirati Sponsor | /ˌɛmɪˈrɑːti ˈspɒnsər/ | UAE Business Essentials |
An Emirati Sponsor is a UAE national who holds a majority share in a company and sponsors a foreign national for their visa.
Explanation
In the UAE, it is a legal requirement for foreign nationals who want to start a business to have an Emirati Sponsor. This sponsor, who is a UAE national, holds a 51% share in the company and is responsible for sponsoring the foreign national for their visa. While the Emirati Sponsor is the majority shareholder, they can hand over the Power of Attorney (POA) to the foreign partner in return for a fixed annual fee.
Additional Information
There are two types of sponsorship in the UAE: Corporate Sponsorship and Individual Sponsorship. In Corporate Sponsorship, the business is sponsored by a company, rather than an individual. In Individual Sponsorship, a UAE national in their individual capacity becomes the sponsor.
Best Practices
- Always ensure that the terms of the sponsorship agreement are clear and understood by both parties.
- Regularly communicate with your Emirati Sponsor to maintain a good relationship.
Related Terms
- Visa: A permit granted by the UAE government to foreign nationals to live and work in the country.
- Free Zone: Special economic zones in the UAE where foreign nationals can own 100% of their businesses.
- Local Service Agent (LSA): A UAE national who assists foreign nationals in all legal and licensing processes.
External References
- Visa and Emirates ID | The Official Portal of the UAE Government: This page provides comprehensive information about visas and the Emirates ID, including the role of an Emirati Sponsor.
- Residence visa for family members | The Official Portal of the UAE Government: This page provides information about residence visas for family members, including the requirements for an Emirati Sponsor.
- Sponsor File Registration (resident): This service allows opening a sponsor’s file through which he can sponsor the assisting categories.
Conclusion
Understanding the role of an Emirati Sponsor is crucial for any expat looking to start a business in the UAE. By sponsoring foreign nationals for their visas, Emirati Sponsors play a key role in the UAE’s business landscape.
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