A local sponsor is a UAE national/Emirati who acts as a service representative of your business when you set up a locally licensed company and do direct business in the UAE.
In the UAE, it's compulsory to have a local sponsor (UAE national) involved when setting up this new business. A trading company must have legal documents to show that a national Emirati is a shareholder. Somewhat similar local business sponsorships apply in other GCC countries.
No doubt, it is fundamental to have the right local sponsor when doing business in the UAE, GCC and wider Middle East region; a partner closely aligned to your goals and supportive in every aspects of the business.
As your local sponsor, Novelty Group assists with setting up the business, registration of all commercial licenses and documentation, as well as subsequent company formalities, maintenance and administration services. Local sponsorship is available for all types of LLCs, as well as for professional practices, sole establishments and partnership companies. Furthermore, Novelty Group provides consulting and expertise to help penetrate a given market and develop the business.
Key advantages of a local company sponsorship in the UAE
Backed by years of experience in the industry, Novelty Group's Chairman Abdul Rauof Al Mubarak is a dynamic entrepreneur that boasts a portfolio of both mega and diverse foreign multinational companies as partners, whilst successfully supporting their introduction and expansion to the region. This includes businesses in various key economic sectors, such as engineering & construction, general trading, information and communication technology (ICT), medical, oil & gas, and professional services, among other. See some of our existing featured partners
Mr Al Mubarak's previous experience includes foreign exchange & investment manager in the UAE Currency Board, Central Bank of UAE; Undersecretary - Deputy Minister for Ministry of Economy & Commerce, as well as participating in national committees related to trade & investment.
Novelty Group can represent a foreign company's interests in the UAE via a commercial agency and distributorship agreement. Acting as the authorised local agent, we help build solid partnerships and networks, as well as ongoing assistance in delivering products or services directly to the market.
As per UAE Commercial Agencies Law:
A commercial agency is any arrangement whereby a foreign company is represented by an agent to 'distribute, sell, offer, or provide goods or services within the UAE for a commission or profit'. The most common type of agency is the contracts agency, whereby the agent undertakes 'on a permanent basis and in a specific area of activity, the instigation and negotiation of the conclusion of deals, to the advantage of the principal and in return for payment.'
Novelty Group provides an all-inclusive service for setting up a business in the UAE, GCC and wider Middle East region. This includes initial consultation and advice on best practice and on deciding what type of corporate entity is best suited for the specific business and in relation to the country-market. Then, ensuring all necessary legalities and formalities with starting a business and necessary trading licenses are established and maintained.
In the UAE for instance, foreign entities interested in establishing a formal presence have five options: create a permanent establishment, of which there are seven different types, including limited liability company (LLC); establish a branch office; create an entity in a UAE Free Trade Zone; create a civil company (only in Sharjah and Dubai); or enter into a commercial agency agreement.
Novelty Group's business services in setting up a company in the UAE, GCC and wider Middle East region include:
There are seven different methods by which a permanent business establishment can be formed in the UAE. These include:
For more additional information about the various types of permanent establishment and on doing business in the UAE click here
An office address in the UAE is compulsory when setting up a new business, and must be verified by local municipality/authorities. Office space requirements are varied based on the type of license and it's the investor's responsibility to ensure a valid tenancy contract for an office is available at the time of applying for the license. Similar rules apply in other GGC countries.
Novelty Group provides office space of international-standards throughout the UAE and GCC on flexible lease terms, and catering to all sorts of company requirements. A range of office space is available for general trading and professional companies, including:
Additionally, assistance can be provided for leasing other types of properties in the UAE and GCC, including commercial, retail and industrial property.
Novelty Group may choose to provide investment capital to partners in various key economic sectors. Our team will look into such possibilities on a case-by-case basis, and determine the extent of investment together with the partner.
Our group is constantly seeking new opportunities in direct investment or co-investment partnerships, especially in businesses operating in sectors that have high growth potential in the UAE, GCC and wider Middle East region.
Armed with local market intelligence, Novelty Group helps partners introduce and boost brand presence in the UAE, GCC and wider Middle East region. Novelty Group works with existing partner infrastructure and processes, as well as with specialised associate companies to establish the right sales and marketing channels, thus supporting business activities.
The goal is to create long-term value from local and regional customers, markets and relationships. This incorporates a number of supportive business development processes, as well as market-specific penetration services in commercial agency agreements and joint venture sponsorships.
Indeed, it is fundamental to have a deep understanding of the local market - in terms of demographics, characteristics and purchasing trends - in order to better employ such strategies. Meanwhile, existing and secure distribution channels ensure efficient and effective sales execution.
Novelty Group has over 60 years combined experience in the Middle East region, and an established network in both Government and key private sectors in the UAE. This is backed by extensive experience in business relations and commerce throughout Europe, the Middle East and Africa.
Novelty Group provides intermediary services to foreign companies seeking to trade in the UAE, GCC and throughout the Middle East region.
As a third-party intermediary, Novelty Group acts as a channel for goods or services offered by a supplier to an end customer (client/consumer) - and in all key economic sectors. This includes offering added value to transactions that otherwise may not be possible by direct trading.
Associated with these services, our team provides vital information and direction to the international trader, such as ongoing consultation on best business practice in the given market, strategic management, corporate administrative professional services, and support with both private and government tenders.