Re: Looking For Local Sponsors
Jun 19, 2014
It's not too difficult to find sponsors or companies that help you get a reliable sponsor. There are many ads in classifieds advertising these. Just look in Gulf News classifieds section and you'll find lots of ads for business setup firms. These firms help you complete the business setup process in an easy and uncomplicated manner because they are expert at this. They charge for their services in addition to what you pay for getting the business license and the sponsor's annual fee. Sponsors also directly advertise their services in classifieds and these may be less costly than going through the business setup firm but you may have to do a lot of complicated work on your own so if you aren't familiar with this sort of work, it might be a better idea to hire a PRO to do it for you. Some sponsors also advertise that they offer PRO services but you'll need to ask just what they will be doing on your behalf.
Sponsors tend to charge an annual fee which is around 5000 but may be more than that. Due to competition, sponsor fees have come down, so do shop around and you can get a competitive rate.
When getting a sponsor, you'll need to sign a court document that outlines your rights and duties as well as the sponsor's rights and duties. Basically, the sponsor is just a service agent (and not a partner in the business) so he/she doesn't have any rights to the business, nor does he/she have any liabilities. The business is solely yours and you have the rights to the business (profit and all) and are responsible for the business's liabilities. The court agreement states all this. It also states that you have to pay the annual fee to the sponsor. It's important that each party's rights and obligations are clearly outlined so that there aren't issues later on. The agreement is signed in front of the judge in the court (notary department)
Make sure you get all the information clarified from the start (such as being able to get visas for yourself and your employees, getting visit visas, etc) so that if you aren't happy with how something will be, you can choose a different route. Discuss in whose name will be things like the immigration card and labour card, yours or the sponsors
It's important to get a clear idea of the costs you will incur to set up the business. Some people only quote a few costs but the actual costs are much higher. For example, someone may say to you that a business license will only cost you 6000 AED but that may only include government license fees. Actual costs can run up to 100,000 when you include sponsor's fees, office rent, investor visa costs, investor deposit, etc.
These are expenses you'll incur when you get a mainland license. On the other hand, you can go for a free zone license. This license is comparatively less expensive. They don't require a local sponsor and some areas (such as Ajman) don't require an actual office either - you can just get a virtual office or office desk, which is usually included in the quoted price. Furthermore, while some free zones have a minimum investment requirement, others don't. So get details about all this in advance. Also note that there are some limitations to where free zone companies can do business so get information about this as well and find out how you can provide your product or services to mainland UAE through an agent and what taxes you have to pay when doing so. Finally, find out about visas provided for the owner and how long it takes to get them. Whatever information you get should be obtained from reliable parties. if you're considering getting a free zone license, get your information directly from the free zone authority or business setup firms that mainly provide free zone setup service because they are well acquainted with the work and rules and may be able to give you more reliable information.
--- Jun 19, 2014 ---
I think that the right thing for you would be to open a branch office of your company here. So get details about that.
Once you open a branch office, you'll be able to provide some work visas for construction managers.
If you need to get information about opening a branch office, feel free to contact me through PM.
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