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Sole Establishment

Sole Proprietor Company in Dubai

A Sole Proprietorship in Dubai is a legal entity owned and operated by a single individual, known as the sole proprietor. The sole proprietor is in complete control of the company’s operations and profits and bears unlimited liability; that is, he/she is fully liable for the company’s debts or and obligations.

A Sole Proprietorship Company in Dubai can be formed only by a UAE national or a national of the Gulf Cooperation Council (GCC). For a non-UAE national, establishing a sole proprietor company would require him/her to have a residence permit and a local sponsor. They can be a Dubai national or company. In case the sole proprietor is to carry out a professional or commercial activity, he/she must obtain the appropriate license.

Conditions to Set up a Sole Proprietorship in Dubai​

  • The sole proprietor is engaged in consultancy activities must have obtained an education qualification for the same activity that he/she has selected.
  • There is a limitation to the number of managers that can be appointed on a professional license.
  • The capital of the business is not a constraint for a sole proprietorship.
  • The business name must be related to the commercial activity of the company.
  • A sole proprietorship can have more than one branch. Each may undertake one or all the activities included in the main business license.
  • The owner/s can also change its legal form according to DED procedures.
  • A single establishment may need the owner or a manager to appear for exams with an American University in Dubai in support of practicing certain economic activities. These exams are required at the time of setup and renewal of the license.

Advantages of a Sole Proprietorship Business in Dubai

  • Foreign professionals can retain 100% foreign ownership in the business;
  • The company can legally practice professional services anywhere in the UAE, including Free Zones
  • No restrictions on the location where the company can rent/buy office space
  • The government has wholly waived any paid-up capital requirements