Whether you need a local sponsor for company setup in uae depends on the business structure and activity. Free zone companies do not require any local sponsor, as they allow 100% foreign ownership. Mainland companies previously needed a UAE national sponsor holding 51% of the shares.

However, recent legal changes now allow full foreign ownership in many commercial and industrial sectors without needing a local partner. That said, some activities such as legal representation or security services may still require Emirati partnership. Many businesses choose free zones to avoid sponsor requirements altogether. When completing company setup in uae, reviewing the latest regulations ensures you select the most suitable ownership structure.