Do You Really Need a Local Sponsor to Start Business in UAE?

Incorporating and entity in the non-free zone requires a UAE national as a partner or as a service agent. This depends on the legal structure and license activity. Local sponsor is a mandatory requirement if a foreign investor aims to form his business in the UAE mainland. The sponsor has to be a UAE national. If the business is to be set up in the UAE mainland, then the 51% of business will be owned by the local sponsor.

But this is not in the case with free zones. Free zone companies can be 100% owned by foreign nationals.

Anyone willing to start a business in Dubai or anywhere in UAE, initiates the process of setting their company in the UAE by looking for UAE local sponsorship.

‘Local sponsor’ is a generic term used in the UAE referring to local service agents and nominee shareholders (sleeping partners) in mainland companies with foreign investment. A sponsor has to be an Emirati (UAE national) with a family membership card.

Also, business setup is possible in Dubai Mainland without local sponsor by forming civil/professional services company. But this still necessitates a Dubai local agent.

The appointed local sponsor takes no role in the daily operations of the company’s business. They are responsible for liaising with the necessary government department on behalf of the organization in the obtaining of visas, immigration approvals and other licenses.

Getting your company registered in Dubai or UAE can be a complex process at the best of times. Add to that the additional difficulties of setting up in a foreign country and the entire process can feel like unachievable. However, none of these factors pulls back foreign entrepreneurs and investors when it comes to owning a business in the UAE. And nor should it.

True, getting a business up and running anywhere takes effort, but as long as you go in with the accurate knowledge and professional advice, there is no reason why these complexities cannot be overcome.

PMC Solutions DMCC helps you register your company in Dubai or UAE by providing you with trusted Dubai Local Sponsors (UAE National Partner).

PMC Solutions DMCC is a Corporate Service Provider specialized in designing bespoke solutions for Business Setup, and Family Residency for foreign and local investors, willing to establish and grow their businesses in the entire UAE.

PMC Solutions has been established to provide complete company incorporation, administration and management services in all major jurisdictions in the UAE where it is pioneering the concept of Free zone and Offshore Incorporation.

For further details log on to www.pmcsolutions.me or e-mail at setup@pmcsolutions.me.

Gold Trading in Dubai

Volume of gold traded in Dubai has been growing at a rate of 13 percent year on year. It also represents a way to overcome any weakness in the US economy since the dirham is pegged to USD.

Hence gold is often seen as a safe haven compared to fiat currency.

Dubai has been the worlds highest exporter of gold and hence you can see that gold trading business is a lucrative one with many key players operating from here.

The Dubai gold souk used to be the main hub and location for businesses during the old days but now investors have many options and more high tech and secure location to conduct their businesses from.

As with any startup you would have to be suitably licensed for the import and export of gold.

For this we can go with the Mainland option, popular for retail outlets and also if you are mainly into wholesale the Dubai Multi Commodity Centre – DMCC free zone will be the ideal location.

DMCC accounts for the bulk of the business of gold trade in Dubai, it is also home to the Dubai Gold and Commodities exchange (DGCX), a huge network of wholesalers and gold refineries.

Gold being a high value commodity also needs a secure form of storage, DMCC houses a high security vault managed by Brinks to store your precious metals.

Trading in precious commodity like gold is regulated by the Security Industry regulatory agency (SIRA).

Meaning this is part of the preapproval stage before the trade license as the registered address of the business must be approved by SIRA and they will be the ones to mandate any modification like security camera, burglar alarms to be done.

This of course also depends on the business model and how they will be operating.

Once you have your license issued by DMCC or the Department of Economic Development (DED), you can start trading in gold.

Trading in gold is not just limited to holding physical gold, there are other options like CFD, Futures where physical gold is not actually handled or taken possession of, rather the transactions take place electronically and only profits or losses are reflected in the trading account.

For all your queries on Gold Trading Business in Dubai log on to www.pmcsolutions.me