LLC company – what role plays Sponsor?

In LLC companies sponsor (UAE resident) owns at least 51% of share capital. In professional LLC companies (doctors, lawyers, etc.) foreigner may own 100% of share capital; in such a case Sponsor acts as an Agent of the company. 51% of share capital is rudimental statutory indicator of UAE law.

Amendment cancelling such restriction is under discussion for years. Sponsor often play nominal role (except for reception of annual fixed remuneration). Sponsor fee comprises (15000 – 20000 AED), that is 4000-5500 USD per annum. Sponsor does not interfere in management of the company.

Sponsor shall also close business is foreign investor decides not to extend term of company activity.