7 Business Benefits of Corporate Sponsorship in 2019KWSME
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.
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.