7 Business Benefits of Corporate Sponsorship in 2019

7 Business Benefits of Corporate Sponsorship in 2019

In our experience of dealing with numerous entrepreneurs, we have observed that many foreign investors find the concept of engaging a local sponsor and giving 51% share of their company a rather daunting experience. They prefer corporate sponsorship in order to give themselves a complete peace of mind.Corporate sponsorship is less risky as it is unambiguous from start to finish. If an entrepreneur looking for business setup in Dubai opts for corporate sponsorship, he is given the support of an entire corporate team, instead of just one individual as in the case of individual sponsorship.

Read More: Types of Local Sponsors Required For Businesses in UAE

Let’s look at some of the major business benefits of corporate sponsorship in Dubai.

 1. No Interference from the Sponsor:

One of the greatest benefit of corporate sponsorship in Dubai is that it lets entrepreneur maintain complete control over their business, in spite of the fact that corporate sponsor holds majority of the shares. Corporate sponsors never interfere in the day-to-day running of the business, allow business owner to have complete control over the management, staff, clients and service offering.

 2. 100% Financial Benefits

Similar to individual sponsor, a corporate UAE mainland sponsor becomes 51% shareholder of company. However, the major benefit here is that foreign investor as a business owner retains 100% of financial benefits along with full control.

 3. In-depth Protective Contracts

Of course, getting into a legal agreement with a local sponsor you do not know is a risky business, but not with corporate sponsorship. With corporate sponsorship, you have the legal protection you need. Most corporate sponsors provide detailed contracts drafted by first-tier legal counsel with each term very clear. This way, rights of business owners and their shareholders are fully secured.

Read More: How Much Influence Does Local Sponsor Really Have Over My UAE Business?

 4. More Structured and Quick Document Completion:

As compared to individual sponsorship, it is difficult to establish time-horizons with individual sponsors e.g. in the case if individual sponsor travels a lot. Corporate sponsorship is more structured and takes documentation completion period hassle free and in short amount of time.

 5. No Need for Succession Planning

In case of individual sponsorship if a partner passes away or retires early can cause ownership problems. Entrepreneurs mitigate this risk by going through “succession planning” or keeping a legally-binding plan in place. But this is costly both in terms of time and money. With corporate sponsorship, you need not worry about succession planning.

 6. Corporate Sponsorship Promotes a Positive Brand

Your brand is the most important commodity of your company in Dubai. Brand is your company’s identity and you always try to maintain its positive image. When a corporate sponsor associates with you, their positive image, respected identity and favorable public opinion benefits yours and lends you credibility.

 7. Corporate Sponsorship Reaches a Wider Demographic

Corporate sponsors in Dubai allow your company to reach a wider audience because their audience is wider than yours. People who know corporate sponsor will undoubtedly be attracted to your company and you can secure new customers through an association with a reputable brand; it’s a win.

If you are looking to setup business in Dubai and your business requires a local sponsor, KWS Middle East is on hand to help. We will save your hassle to spend time searching for and building a rapport with an individual – instead, KWS ME will provide a reputable corporate nominee to act as your 51% local sponsor in Dubai.

Contact our Dubai business setup consultants by giving us a call at 00971-(04) 871 4313 or send your query at info@kwsme.com

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