What is a local service agent (LSA) in the UAE and when do I need one?

A local service agent (LSA) is a UAE national or a company wholly owned by UAE nationals who is appointed to assist a foreign-owned business with government-related administrative matters, such as licence processing, visas, and dealings with authorities. Crucially, an LSA does not own shares in the business, does not control it, and does not share in its profits; the arrangement is usually set out in a written agreement on terms agreed between the parties. LSAs have traditionally been associated with certain professional licences and foreign company branches rather than commercial LLCs. With reforms allowing full foreign ownership of many mainland activities, the situations requiring a local agent have narrowed, but they can still apply to specific activity types. Because whether you need an LSA depends on your activity and the emirate, confirm with the relevant economic department before signing anything. To draft or review an LSA agreement and protect your control of the business, you can compare verified UAE legal professionals on LEXAI.