The requirement for foreign investors to setup a mainland LLC in UAE is to have a 51% Local Shareholder. The main concern for this requirement to an investor is how much involvement the sponsor will have; it could mean that the Local Sponsor could potentially get involved in operations of the business, request a percentage of profits and possibly make it difficult for future exit of the foreign investor. Another risk to consider is who the successor would be to replace the Local Sponsor should unexpected death or early retirement occur, which could cause disruption to the business.
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Business Development Manager
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Business Consultant – Abu Dhabi
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