Local Service Agent Agreement
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Local Service Agent Agreement
A local service agent agreement is a legal document that establishes a relationship between the local service agent and the foreign company. The purpose of this agreement is to clarify the rights and responsibilities of both parties, as well as set forth their obligations.
The local service agent is responsible for providing services in connection with the sale of products or services within a specific territory. This includes providing marketing, sales, and technical support for those products or services, as well as shipping and handling orders. The foreign company retains ownership and control over all intellectual property associated with its products or services, even though they may be sold through a third party such as a local service agent.
The local service agent is not an employee of the foreign company but rather works independently while retaining their own staff and offices. A local service agent the agreement will specify how compensation will be calculated based on sales volume as well as other factors such as marketing expenses incurred by both parties. It also sets forth how disputes will be resolved in case there are disagreements between parties regarding these issues or others related to the operation of their business the relationship which may arise in future years when new contracts are signed between them again (or if one party disappears suddenly without explanation).
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Local Service Agent Agreement
A Local Service Agent Agreement (LSA) explains the relationship of the owner and the LSA. Once we receive the Initial approval from DED, we will draft an LSA agreement. The LSA can be written in Arabic or English; we’ll type it in whichever language you prefer. It will need to be signed by a Notary Public or a lawyer;
then, it needs to be legalized by a Legal Consultancy firm.
It is important to note that the local service agent agreement (LSA) you sign will depend on the legal form of your company. To perform professional activities in UAE, you need to prepare a local service agent agreement LSA. For commercial activities, you need to sign a memorandum of understanding MOA. The following forms need MOA.
- Public Shareholding Company
- Limited Liability Company
- Private Shareholding Company
- Civil Company
- Partnership Company
- Simple Limited Partnership
If you’re setting up a branch in Dubai, then a Memorandum of Association (MOA) is needed. However, if you are setting up a sole establishment (i.e. not a branch), or if
If you’re setting up an incorporated civil company that owns over 51 % by UAE locals and is not owned by foreign shareholders, then you will need to file an LSA Agreement with the Department of Economic Development.
Local service agent (LSA) for business setup in Dubai
A Local Sponsor or Local Service Agent is a UAE National who manages the registration process for your business, in exchange for an annual fee. He or she has no responsibility or legal interest in the management, business, profits, or assets of the branch. UAE nationals with family membership cards can be local sponsors of mainland companies. However, they are mostly inactive.
local sponsorship in the UAE can be divided into several types:
Corporate Sponsor :
If you want to start a company in Dubai, you can do so by forming an LLC. The UAE national sponsor is entitled to 51% of the company\’s shares owned by foreign-origin individuals or business partners. Corporate local sponsorship is a popular and very appropriate way to start an LLC in Dubai.
Individual Sponsor:
An individual citizen of the United Arab Emirates can sponsor a new business, so long as that individual has 51% ownership and is a UAE citizen. The local sponsor does not have to be involved in the operations of the business, but must still be a citizen of the UAE. Individual local sponsorship is a great way to begin a business in Dubai.
Duties of Local Sponsors in UAE:
The local Sponsor is responsible for Canceling a visa, canceling the work permit, closing bank accounts, and settling any outstanding debt. A local service agent can take care of government officials for you and facilitate the renewal process. When registering a business, local authorities can translate and interpret the Arabic contracts for their foreign business partners
Here at Legal House legal consulting firm , we can help you open a business in Dubai. Our experts will advise you on the best options for your specific needs. We’ll find you a Local Sponsor (or Local Service Agent as applicable) who is experienced and eager to help new businesses succeed.
