Sole Proprietorship in Dubai

A Sole Proprietorship is a business structure in which an individual owns and can be held responsible for the actions of the company. A sole proprietorship in Dubai is subject to different terms and conditions as stipulated by the Commercial Code and the Companies Act in Dubai. Most small enterprises prefer sole proprietorship Dubai.

Benefits of a Sole Proprietorship Company in Dubai

Here are a few advantages of starting a Sole Proprietorship Company in Dubai:

• Foreign businessmen can easily retain complete  ownership of the business
• There are no restrictions on where you can setup your office.
• A sole trader company in Dubai is affordable compared to other forms of business structure. 
• A company can practice professional services in any part of the UAE, including the free zones.
• The government of  UAE has permanently waived all the requirements of paid-up capital in relation to the sole proprietorship company formation in Dubai

Features of a Sole Proprietorship Company Setup in Dubai

• A corporate entity cannot own a sole proprietorship
• A sole proprietorship company cannot have a branch outside the Emirates
• The trade name must be related to the commercial activity conducted by the firm
• If the trader is a resident of any GCC member country, then the services of a Local Service Agent (LSA) are required.​
• A sole proprietor can appoint one manager for the company as per the regulations of the Department of Economic Development (DED). 
• A sole trader can have more than one branch. Each may undertake one or all of the activities included in the main business license.
• A Dubai sole trader enjoys the flexibility to conduct commercial or professional activities anywhere within the United Arab Emirates.
• All documents must be translated into Arabic by an official translator before they can be presented to the authorities in the UAE.

Procedure to Start a Sole Proprietorship in Dubai

The process of establishing a sole proprietorship is less expensive when compared to other business structures. Here are the steps one must follow for a sole proprietorship in Dubai:

1. Select a trade name for your business. It must be unique and should reflect the products and services you offer.
2. Get the initial approval from the Department of Economic Development in Dubai. This approval is a primary permission to register your business in Dubai.
3. Obtain approvals from relevant government departments. A sole proprietorship company in Dubai requires an office space. 
4. Register your business by submitting an application form along with the documents.
5. Once you get the business registered, you can apply for a license.

Documents Required to Register a Business in Dubai

Here is a list of documents which are required to be submitted to register your company with the Dubai Trade Register:

• Application form
• Residence permit
• Licensing application form
• Proof of registered address
• Business Name of a sole trader
• A copy of the passport of the business owner
• A no-objection letter obtained from the sponsor
• Information about local agents while dealing with foreign citizens

Note that all the documents must be notarized and attested by the UAE consulate. The notarization process should be started as early as possible because it can take a significant amount of time. 

Business Setup Worldwide is one of the top consultants in Dubai to help you start a business in the UAE. Our advisors are well-versed in the legalities of business and can help you in setting up a business in Dubai smoothly and efficiently. Contact us today to know more.