Our Clients
For foreign nationals
They can only apply for a professional license for their sole proprietorship. All professional activities are eligible for a sole establishment, and they can engage in consultancy activities.
However, certain consultancy activities can only be practiced by UAE nationals. As a foreign national, it is mandatory to have a Local Service Agent (LSA) to register the sole establishment in the UAE.
It's important for foreign nationals to be aware of the limitations and requirements associated with setting up a sole proprietorship in the UAE as compared to UAE and GCC nationals. Having a Local Service Agent helps foreign nationals meet the local requirements for establishing and operating their sole establishments in the country.
Key features of a sole proprietorship in the UAE
Single Owner
The business is owned and operated by one individual only.
No Shareholders
There are no other shareholders or partners involved in the business.
100% Ownership
The sole proprietor has full ownership and control of the business.
Complete Control
The sole proprietor has sole control over all business operations.
100% Profit Retention
All profits generated by the business belong to the sole owner.
Personal Liability
The sole proprietor is personally liable for all business debts and financial obligations.
Low Start-up Cost
Establishing a sole proprietorship generally involves lower initial costs compared to other business structures.
Quick Business Registration
The process of registering a sole proprietorship is typically straightforward and can be done quickly.
No Business Capital Requirement
There is no specific minimum capital requirement for starting a sole proprietorship.
Who can form a sole proprietorship in the UAE?
In the UAE, sole proprietorships can be formed by UAE nationals, Gulf Cooperation Council (GCC) nationals, and foreign nationals, but the conditions and requirements vary based on the individual's nationality.
For UAE nationals and GCC nationals
They can form any type of sole establishment, including industrial, commercial, tourism, or professional activities. They can also establish consultancies across a range of activities under their professional license.
For foreign nationals
They can only apply for a professional license for their sole proprietorship. All professional activities are eligible for a sole establishment, and they can engage in consultancy activities.
However, certain consultancy activities can only be practiced by UAE nationals. As a foreign national, it is mandatory to have a Local Service Agent (LSA) to register the sole establishment in the UAE.
It's important for foreign nationals to be aware of the limitations and requirements associated with setting up a sole proprietorship in the UAE as compared to UAE and GCC nationals. Having a Local Service Agent helps foreign nationals meet the local requirements for establishing and operating their sole establishments in the country.
Requirements
Before initiating the registration process for a sole proprietorship in the UAE, ensure that you meet the following requirements, as per the UAE law for sole establishments. These documents and information will be necessary during the trade license application process.
- A copy of your passport
- A copy of your UAE residence visa or visit visa
- Trade name options for your establishment
- The intended business activity of your sole establishment
- The type of office you will need
- A copy of your local service agent's Emirates ID
Why Us?
With Danburite's expert guidance, you can confidently establish your Sole Establishment in the UAE. Embrace entrepreneurship with independence and accountability, as you take charge of your business journey. Start now and make your entrepreneurial dreams a reality.
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