Sole proprietorship in UAE
Is a Sole Proprietorship For You?
The United Arab Emirates (UAE) boasts progressive legislation that facilitates straightforward business setup for investors of all sizes. A sole proprietorship in the UAE is a legal structure owned and operated by a single individual, with a trade license issued under their name. The owner assumes all responsibilities and financial liabilities of the business. Businesses offering professional services without engaging in commercial activities are exempt from the Commercial Companies Law (CCL). However, obtaining a license from the Department of Economic Development (DED) is mandatory. We can assist you in establishing a Sole Establishment anywhere in the UAE, including Dubai.
In contrast to forming an LLC (Limited Liability Company), where at least 51% of shares must be held by a GCC/UAE national sponsor, sole proprietorships and professional service practices allow qualified foreign investors to retain full ownership of their company.
Foreign-owned businesses typically appoint a local service agent (LSA) to assist with obtaining licenses, visas, and other administrative tasks. In most instances, LSAs do not have direct involvement in the business operations. B-FIRST BUSINESS SOLUTIONS can act as your local service agent, providing the necessary support and ensuring compliance with local regulations.
Key steps to setting up an Establishment or Sole Proprietorship in UAE:
Sole proprietorship business in UAE requires a local service agent, which is either a UAE national or company completely owned by UAE nationals. A&A Associate LLC has created 100% UAE-owed LLCs fully managed and controlled through power of attorneys or similar legal agreements. Such companies act as LSA.
The documents required for registration and approval will include,
- 1. Shareholder passport copy
- 2. UAE resident visa copy, if necessary
- 3. NOC certificate from current resident visa sponsor
- 4. Proof of educational qualification, professional experience
- 5. General manager passport copy
Advantages of a Sole Proprietorship in UAE or an Establishment
- 1.The foreign professionals retain complete ownership in the business
- 2. Companies can legally practice professional services anywhere in UAE, including the free zones.
- 3. Choose your location where the company can rent or buy office premises
- 4. The UAE government has waived the paid up capital requirements.
Sole proprietorship in Dubai
Establishing a sole proprietorship in Dubai offers a straightforward business setup option for both local and foreign entrepreneurs in the Emirate. While foreign entrepreneurs are required to have a local sponsor with a residence permit to open a sole establishment in Dubai, this sponsor can either be a Dubai-based company or an individual with Emirati or GCC nationality.
At B-FIRST BUSINESS SOLUTIONS, we pride ourselves on assisting entrepreneurs in establishing their businesses, whether on the mainland or within free zones. Our dedicated team of company formation experts is committed to guiding you through the intricate paperwork, ensuring a smooth and timely approval process for your Business License application.
With our team of experienced legal professionals, we guarantee compliance with all regulatory requirements, giving you peace of mind and allowing you to concentrate on your core business activities.
Additionally, our team of skilled accountants and audit experts is available to support you with comprehensive financial accounting services. Remember, an Annual Audit is mandatory for all mainland-based companies, and our tailored solutions have proven invaluable to numerous businesses.
For further information or inquiries, please don’t hesitate to contact us. We are here to assist you every step of the way.
Establishment or Sole Proprietorship in UAE – FAQs
What sort of activities can be conducted under Sole Proprietorship?
Expatriates in Dubai can establish sole proprietorships primarily for professional services like management consultancy, medical practices, engineering services, IT consultancy, and similar professional activities. This means that expatriates are restricted to setting up sole establishments that offer specialized professional services rather than engaging in commercial trading activities.
Can we open a bank account for Sole Proprietorship?
Yes, we can open a bank account in any of the UAE banks
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