Does setting up a salon need local sponsorship in Dubai?

Does setting up a salon need local sponsorship in Dubai?

Wondering if you need a local sponsorship in Dubai mainland to setup a salon business? Entrepreneur prefer to start their salon business in Dubai Mainland as it creates more business opportunities. The Department of Economic Development in Dubai (DED) is the governing body for all types of businesses in Dubai Mainland. To start a salon in Dubai Mainland you will have to follow a process as indicated by the DED.

Here is a quick list of things on how to start a salon business in Dubai:

• Submit the passport copies of the partners
• Submit the visa copies of the partners
• Choose a name for the salon
• Submit the name to the DED & get it approved
• Get the initial approval from the DED
• Partners need to draft and sign the LSA Agreement
• Rent a shop as permitted for the Salon
• Get the tenancy contract & the Ejari number
• Get consent from Dubai Municipality’s Planning Section
• Take approval from the Health and Safety Division
• Submit the above documents and permissions to the DED to get the salon licensed.

Knowing how to start a salon business in Dubai is not enough! If you are planning to start a salon in Dubai, then you will have several doubts, such as where to open a beauty salon in Dubai? What is the cost of opening a ladies salon in Dubai? Whether obtaining a beauty salon for sale in Dubai it is a good option? However, topping the list of doubts among businessowners wanting to start a salon is if they need to partner with a UAE national!

Before we analyse the need of a local sponsorship in Dubai for a salon business, let’s understand the role of a local sponsor.

As per the commercial companies’ law, setting up an LLC company under a commercial license mandates the entrepreneur to partner with a UAE national. Local sponsorship in Dubai means entrepreneurs need to partner with a UAE national as per the Article 10 (1) of the Federal Law No. 2 of 2015. The law states that every UAE national entering into an agreement of a local partnership with a foreign investor shall hold at least 51 % of the shares in the company.

Nevertheless, this does not mean that the entrepreneur will have to share the income, profits and losses incurred by the business.
The mutually agreed agreement provides 100% control to the foreign investor in exchange of a nominal annual fee to the UAE national.

So, does setting up a salon require local sponsorship in Dubai?

The straight and simple answer to this is NO! To setup a salon business in Dubai businessowners do not need to partner with a UAE national. Salon is a service-oriented business and is registered under a professional trade license that offers 100% ownership. Nevertheless, under a professional license, salon businesses in Dubai need an agreement with a Local Service Agent (LSA).

Entrepreneurs will not need a local sponsorship in Dubai to start a salon, but will surely have to hire a local service agent. Salon businesses require a local service agent to conduct all the governmental proceeding and deal with the authorities. The LSA will also for permissions to safeguard your business.

Contact DBS to book a free consultation now! Know more about salon businesses in Dubai and Local Service Agent Services across the UAE. Call us on +97145667485, WhatsApp +971551129344 or simply visit www.dubaibusinessservices.com to chat with us.