Now for investors who really want to establish a business in the UAE, they have numerous options, one of which is to have a sponsor. According to setting up a business in Mainland LLC (Limited Liability Company) apart from the free zone. There are certain regulations, in Mainland LLC, a business set needs to have a business partner in the UAE( local or corporate sponsor). Now the local or corporate investor gets 51% of shares of the foreign company and the foreign investor enjoys only 49% of the business.
Now according to the company law in UAE, in a foreign company to set up a business in Mainland LLC, it is mandatory to have a business partner who is a UAE national along with the foreign investor. The local sponsor will not interfere in the day-to-day business happening in the organization. But the foreign company is bound to pay a certain sum of amount to the local investor every year for the services offered by him.