Local sponsor refers to dormant partners (nominee shareholders) and local service agents. These sponsors should have a family book, a valid Dubai passport, and of course be a UAE national. By law, they are mandated to hold either a share in your company or be an agent, which will be decided on mutual agreements and based on the license setup.
Local sponsors are an indispensable aspect of your business if you are planning to put up a company in mainland Dubai. Before you hire a local sponsor, you need to do a thorough background check. Pay special attention to the residency of the local sponsor, his/her family background, and history of work.