A Sole Proprietorship is an entity owned by an individual who assumes all the financial responsibilities of the entity including all its financial liabilities. Dubai currently has the best climate for business setup in the entire UAE. The country has the most modern legislation covering company formation as it allows both large and small investors to set up a business according to their budget. If large enterprises have options to set up public or private companies, small enterprises have an option of sole proprietorship. A sole proprietorship in Dubai is subject to different terms and conditions as stipulated by the Commercial Code and the Companies Act in Dubai.
Here are a few advantages a sole trader can have after starting this type of business entity.
To register a sole proprietorship in Dubai, one needs to get the approval from the DED Dubai like any other business entity. It is the main authority where every business in the UAE is registered. Since there are hardly any Articles of Association or Memorandum needed to be prepared for this form of company, the procedure is much less expensive compared to other types of company formation. Here are the steps one must follow to register their business in Dubai.
Here is a list of all the documents needed to be filed with Dubai Trade Register for setting up a sole establishment UAE company.
There can also be additional documents needed based on activities carried out by a sole proprietorship. Note that, all the documents must be notarized and attested with the relevant UAE consulate. The notarization process should be commenced as early as possible because it can take a significant time. All documents must also be translated into Arabic by an official translator before they can be presented to the authorities in the UAE.
A Dubai sole trader can carry out commercial or professional activities across the Emirates; therefore the license to obtain must reflect these activities. Even if there is no minimum amount to open a sole trader in Dubai, an individual must calculate the amount needed to carry out his or her activities. Another requirement to establish this type of business form is to have registered address in Dubai.
Business Setup Worldwide is a platform to help you start any kind of business in the UAE. Our advisors are well versed with the legalities of the business and can help you in setting up a business in Dubai smoothly and efficiently. Contact us today to know more.