Difference Between Local Sponsor and Local Service Agent (LSA)
Understand the difference between a Dubai local sponsor and a Local Service Agent (LSA) to choose the right structure for your Mainland business.
Introduction
Many investors confuse the roles of a Local Sponsor and a Local Service Agent when setting up a Mainland business.
Business Overview
A local sponsor holds a share in certain Mainland businesses, while an LSA provides administrative support without ownership. The requirement depends on the business activity.
Key Requirements
Commercial and industrial companies need local sponsors, while professional service firms typically require LSAs.
Additional Information
ADL Business Solutions helps investors identify whether they need a sponsor or an LSA based on their business license.
Conclusion
Understanding the difference helps ensure a compliant and suitable setup structure in Dubai Mainland.