How do the local service agent agreement and local sponsor system work in Dubai?






The local service agent (LSA) agreement and local sponsor system are two key aspects of setting up a business in the UAE. The LSA agreement applies to certain types of licenses, like professional licenses or branches of foreign companies. The LSA, who must be a UAE national, is paid a fixed fee to act as a representative for administrative dealings with the government. They don’t own a part of the company or receive any commission or profits. The local sponsor system, on the other hand, applies to LLCs. A local sponsor must own 51% of the company.

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