Introduction
If you are a foreign entrepreneur planning to set up a business in the UAE, you’ve probably come across the term Local Service Agent (LSA). For certain business activities in Dubai, such as professional firms, consultancy setups, and branches of foreign companies, working with a Local Service Agent is mandatory.
One of the most common questions investors ask is: What is the Local Service Agent Dubai cost?
In this guide, we’ll break down the cost of a Local Service Agent in Dubai, what factors influence it, and why choosing the right agent can make or break your business journey in the UAE.
What Is a Local Service Agent in Dubai?
A Local Service Agent (LSA) is a UAE national who acts as a representative for foreign-owned companies in Dubai. Unlike a local sponsor in an LLC structure (who holds 51% ownership), an LSA does not own shares or profits of the company. Instead, they serve as a liaison with government departments for licensing, visa processing, permits, and other formalities.
This makes the local service agent Dubai cost more of an annual professional fee rather than a profit-sharing arrangement.
How Much Does a Local Service Agent in Dubai Cost
The Local Service Agent Dubai cost typically ranges between AED 10,000 to AED 25,000 per year, depending on the nature of your business and the level of services included.
- Basic services (licensing and renewals): AED 8,000 – AED 12,000 per year
- Medium-level services (licensing + visas + compliance support): AED 12,000 – AED 18,000 per year
- Comprehensive services (full PRO support + government liaison + ongoing compliance): AED 18,000 – AED 25,000 per year
This fixed annual fee is agreed upon in the Local Service Agent agreement and does not change based on your profits or business income.
Factors That Influence Local Service Agent Dubai Cost
Several factors affect how much you’ll pay for your local service agent in Dubai:
- Business activity – Professional services such as consultancy, legal, and medical practices often require more complex compliance.
- Company size – Larger businesses with multiple visas and permits typically need more services.
- Scope of responsibilities – Some LSAs only handle licensing, while others provide complete PRO and government liaison support.
- Agent’s experience and reputation – Well-connected LSAs or corporate service providers may charge higher fees.
- Location of business setup – Mainland businesses often have slightly higher LSA costs compared to free zones.
Why Paying for a Local Service Agent Is Worth It
While some investors worry about the Local Service Agent Dubai cost, it’s important to see it as an investment rather than an expense.
Here’s why:
- 100% foreign ownership – You keep full control of your business.
- Hassle-free setup – The agent handles paperwork, approvals, and renewals.
- Government representation – A local presence helps in smooth dealing with authorities.
- Focus on growth – With compliance handled, you can concentrate on scaling your business.
When comparing Local Service Agent Dubai cost, don’t just go for the cheapest option. Instead, consider:
- Experience in handling businesses like yours
- Reputation and reliability in the market
- Transparent fee structure with no hidden charges
- Availability to assist when needed
- Option to work through a trusted business setup consultancy
The Local Service Agent Dubai cost generally ranges from AED 10,000 to AED 25,000 annually, depending on services required.
2. Does the Local Service Agent own shares in my company?
No. Under the LSA agreement, you retain 100% ownership of your company.
3. Can the cost be negotiated?
Yes, in many cases the annual fee can be negotiated based on the scope of services.
4. What happens if I want to change my Local Service Agent?
You can legally change your agent through a notarized amendment to your agreement.
Conclusion
Understanding the Local Service Agent Dubai cost is an essential step in setting up your business in the UAE. While fees usually range between AED 10,000 and AED 25,000 per year, the actual amount depends on your business activity, size, and level of support required.
Choosing the right Local Service Agent not only ensures compliance but also saves you time, effort, and stress in managing government procedures. By partnering with a reliable agent, you can confidently build your business in Dubai while retaining 100% ownership.
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