Years Experience
A local service agent is UAE national and he/she has to make sure that the company can continue its business in Dubai. A local service agent is not responsible for running the civil functions of a company. Although he/ she does not have any shares in the business or the assets of a company. Whenever a foreign investor wants to establish a company in the UAE, he has to hire a local service agent.
Many people confuse the term local sponsor with the local service agent. Let’s dig into it to clear that confusion. When entrepreneurs or businessmen want to establish their company in the UAE, they either need a local sponsor or a local service agent for licensing purposes. A Mainland company is also known as an Onshore or DED (Department of Economic Development) license. Depending on your business activity, you will select either a local service agent or a local sponsor. Let’s get an insight into the responsibilities of them to get a clear picture.
Your business activity will determine whether you need a local sponsor or a local service agent. There are three types of licenses in Mainland Dubai.
A professional license includes activities regarding services and the exchange of knowledge. These activities can be consultancy, salon, restaurant, and accounting. You need a local service agent for the establishment of a professional license.
This license covers the activities related to the trade and exchange of products or goods. It includes activities such as general trading, rental, and car dealerships. You need a local sponsor to get a commercial license.
Industrial processes and various construction activities fall under the domain of industrial activities license. It includes different activities such as food production, construction, industrial, and fabrication. You need a local sponsor to get an industrial activities license.