LOCAL SERVICE AGENT
Anyone setting up a sole proprietorship, civil business or a branch office must appoint a local service agent, which is essentially a sponsor. Unlike a UAE national sponsor required for a limited liability company (LLC), a local service agent is paid a fixed fee only for their services and does not receive any commission or profits from the branch office. call us+971545820984
Difference Between Local Service Agent and Local Sponsor
Both Local sponsor or local service agent can be a sponsor company ( own 100% by UAE National ) or an individual ( UAE National ).The businesses open in Mainland are liable to have local sponsor and local service agent with following shares and administrative power as per by UAE law.The nature of sponsorship depends upon the license type.
Local Sponsor for Business
1- Industrial and commercial based activities in mainland must appoint a local sponsor for their business.
2-Local sponsor owned 51% of company profit whereas as foreign partner own 49% of business profit shares.
3-Local sponsor has full administrative powers, However, the sponsor can provide you with a power of attorney and avoid any involvement in the operations or profit sharing.
4-He/She individual may be a professional, a government employee in the UAE or a businessman.
5-Some activities need a professional qualification to sponsor business.
6-For all government related task connected to your business, you need approval from local sponsor.
Local Service Agent for Business
1-Only professional activity based businesses can get 100% ownership of the business but still they required Local Service Agent.
2-Local Service Agent own 0% of business shares and profit, whereas foreign partner or company own 100% of their business shares.
3-Local Service Agent has no administrative powers and only paid annually for government services.
4- He/She individual may be a professional, a government employee in the UAE or a company own by UAE National.
5-Some activities required professional qualification of Local Service Agent.
6- Local Service agent play a role of signatory for fulfillment of all government related tasks.