Local Service Agent (LSA)
Also known as: LSA, National Service Agent, Local Sponsor (professional)
Quick Answer
A Local Service Agent is a UAE national appointed by a foreign-owned professional mainland company to liaise with government departments. The LSA holds no shares and no ownership — they are paid an annual fee and have no claim on the business.
A Local Service Agent (LSA) is often confused with a local sponsor, but the two are very different. An LSA applies to professional-licence sole establishments and civil companies — not commercial LLCs. The LSA does not own any part of the business, takes no share of profits, and bears no liability. Their role is purely to help with government formalities such as visa and labour transactions.
Since the 2021 reforms allowed 100% foreign ownership of most commercial activities, the LSA model is now mainly relevant to certain professional and civil-work licences where a national agent is still required. The relationship is governed by a notarised LSA agreement that fixes an annual fee (commonly AED 5,000–15,000) and explicitly confirms the agent has no ownership rights.
Choosing the wrong structure — or signing a vague agent agreement — is a classic expat trap. ZETUP PRO advises on whether an LSA is even needed for a given activity, and where it is, drafts a clean agreement that protects the foreign owner.
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