In Dubai, a local services agent is required to start a business because the UAE government has certain regulations in place that require all foreign companies to have a local partner or agent who is a UAE national or a UAE-owned company. This is known as the UAE Commercial Companies Law, and it is designed to encourage foreign investment and help protect the interests of local businesses.

The local services agent serves as a sponsor or a local partner for the foreign company, providing a local address and local support services. They also act as a liaison between the foreign company and the UAE government, helping to navigate local regulations and laws. Additionally, the local services agent may be required to hold a certain percentage of shares in the company, depending on the type of business and the location of the business.

It’s important to note that the role of the local services agent is different from a local sponsor or a local partner, as they do not have any ownership or management control of the company. However, they do play a crucial role in ensuring that the foreign company complies with local regulations and laws, and in helping to establish and grow the business in the UAE.