Sole Proprietorship Business Registration In UAE

A sole proprietorship is a business held by a single person who holds a trade license in his or her own name. The owner assumes all of the entity’s financial duties including the financial liabilities. In Dubai, a Sole Proprietorship is a legal entity owned and run by a single person, known as the sole proprietor. The single owner has entire control over the company’s operations and earnings, as well as unlimited liability, which means he or she is responsible for all of the company’s debts and obligations. Only a UAE national or a Gulf Cooperation Council national can participate in Sole Proprietorship Business registration in UAE. 

Professional service establishments are excluded from the Commercial Companies Law (CCL), although they must be licensed by the Department of Economic Development (DED).

Unlike a UAE Limited Liability Firm (LLC), which needs at least 51 percent of shares to be registered to a UAE/GCC national sponsor, a qualified foreign investor who participates in sole proprietorship business registration in UAE to provide professional service is allowed to own the whole company.

Foreign-owned businesses are obliged to hire a National Service Agent (NSA) to help them get licenses, visas, and other documents. NSAs are not involved in the company in any way. Sovereign has the ability to function like the National Security Agency (NSA).

Participating in sole proprietorship business registration in UAE as a non-UAE national would need a residency visa and a local sponsor. They might be a Dubai resident or a business. If the single proprietor wishes to engage in professional or commercial business, he or she must first get the necessary license.


Advantages of sole proprietorship business registration in UAE

  • Foreign professionals can own 100% of their company
  • The company can lawfully practice professional services anywhere in the UAE, including Free Zones. 
  • The company has no constraints on where it can rent or acquire office space. 
  • The government waves off any paid up capital requirements.

Drawbacks Of Sole Proprietorship Business Registration In UAE

  • The owner is personally accountable for business debts and other financial obligations. Because the firm is inextricably linked to its owner’s personality and financial situation, this liability cannot be minimized by shares.
  • The process of forming a corporation takes longer than that of a Free Zone corporation, generally 8 to 10 weeks.
  • You’ll need an office space in order to incorporate the business. Virtual offices are not commonly recognized by the DED.

Conditions For Setting Up A Sole Proprietorship Business Registration In UAE

  • When a sole owner participates in consultancy activities, he or she must possess an academic credential for the same.
  • A professional licence restricts the number of administrators who can be appointed.
  • The capital of a solitary proprietorship is not a concern.
  • The company’s commercial activity must be reflected in the name.
  • A sole proprietorship might have many locations. Each individual may engage in any or all of the activities listed in the primary business license.
  • According to DED rules, the owner/s can also modify the legal form of the property.
  • In order to engage in some economic activities, a single firm may require the owner or management to take tests at an American university in Dubai. 

Steps For Starting A Sole Proprietorship Business Registration In UAE

The business setup process is the same for all legal forms, with the exception of document changes.

The steps for sole proprietorship business registration in UAE are as follows:

  • Make a decision on a trade name for your Dubai business.
  • Obtain preliminary permission from the Department of Economic Development in Dubai (DED)
  • Fill out the business license application form and submit it to the registrar along with the required documentation.
  • Pay the costs and get your license.
  • Obtain an office location.

Documents Needed For Starting A Sole Proprietorship Business Registration In UAE

  • Business application form
  • Licensing application form
  • The only proprietor’s name, residence permit, and passport copy
  • If the sole proprietor is a foreign citizen, the details of the local sponsor are required.
  • No-objection letter by the sponsor, if applicable
  • Proof of registered address of the company

All documentation must be notarized and attested by the UAE consulate in question. Each paper must be translated into Arabic by a certified translator before presenting to the UAE authorities. All needed documentation must be given to Sovereign, which will then oversee the entire application procedure.

Frequently Asked Questions

For expatriates to launch single enterprises, only professional services such as management, medical, engineering, and IT consultancies, as well as allied services, are authorised.

Yes. Any UAE bank can help you create a business bank account.