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

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Answered on October 24,2023

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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