Local sponsor versus service agent
A local sponsor traditionally held a share in the company. A service agent normally does not own or control the business and provides an administrative service for a fixed arrangement.
When it may still come up
Certain professional licences, branches of foreign companies and regulated activities can involve a local agent or special conditions. The requirement is activity-specific.
- Some professional and civil licences
- Selected branch structures
- Strategic or regulated sectors
Protecting yourself
Any arrangement should be documented clearly, with defined responsibilities and fees, and reviewed by qualified legal advisers where appropriate.
