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Sole Proprietorship Company Formation in Dubai Mainland
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Start Your Business with 100% Ownership and Control
Sole Proprietorship Company Formation in Dubai Mainland offers an ideal structure for individuals who wish to operate their businesses independently while enjoying full ownership and control. Whether you’re a consultant, freelancer, or small business owner, setting up a sole proprietorship in Dubai Mainland is your pathway to success.
Start your journey as the sole owner of your business in Dubai Mainland with expert guidance.
What Is a Sole Proprietorship?
A sole proprietorship is a type of business structure where an individual owns and operates the entire business. The sole owner is fully responsible for all profits, decisions, and liabilities associated with the business. In Dubai Mainland, this structure is particularly advantageous for professionals, freelancers, and small-scale service providers who want to establish a personal brand or operate a single-owner business.
This structure is governed by the Department of Economic Development (DED), ensuring compliance with local regulations and offering a range of licenses tailored to professional and commercial activities.
Benefits of Forming a Sole Proprietorship in Dubai Mainland
Forming a sole proprietorship in Dubai Mainland comes with several benefits that make it an attractive choice:
Full Ownership and Control:
As the sole proprietor, you have complete authority over every aspect of your business, from decision-making to profit retention.
Wide Range of Activities:
Wide Range of Activities: You can engage in various professional, consultancy, and service-based activities, provided they are approved by the DED.
Cost-Efficient Setup:
Compared to other business structures, setting up a sole proprietorship is more affordable, making it accessible to new entrepreneurs.
No Corporate Taxes:
Dubai offers a tax-free environment for sole proprietorships, which helps maximize profits.
Simplified Licensing Process:
The process of obtaining a trade license is streamlined under the supervision of the DED, ensuring faster approvals and minimal complications.
Personal Branding:
As a sole proprietor, your business is directly associated with your name, which can strengthen your professional reputation and credibility.
Step-by-Step Process for Setting Up a Sole Proprietorship in Dubai Mainland
Establishing a sole proprietorship in Dubai Mainland involves several steps, which we have outlined below for your convenience:
Step 01: Choose Your Business Activity
The first step is to identify the professional or commercial activity you want to engage in. The DED provides a comprehensive list of approved business activities for sole proprietors.
Step 02: Reserve Your Trade Name
Choose a unique and appropriate trade name for your business that aligns with UAE naming regulations. This name should not contain offensive language or references to any religion.
Step 03: Obtain Initial Approval from DED
Apply for initial approval from the Department of Economic Development to confirm your eligibility to start the business. This approval is mandatory and ensures that your business activity complies with UAE regulations.
Step 04: Secure a Local Service Agent (If Required)
For certain activities, you may need to appoint a Local Service Agent (LSA). This agent facilitates compliance with legal requirements without holding ownership in your business.
Step 05: Prepare and Submit Documentation
Gather the required documents, including your passport, visa, Emirates ID, and lease agreement (Ejari). Submit these to the DED for review.
Step 06: Finalize Your Trade License Application
Submit your documents and pay the required fees to obtain your professional trade license from the DED.
Step 07: Open a Corporate Bank Account
Set up a business bank account to manage your financial transactions. Most UAE banks require your trade license and additional documents to open an account.
Documents Required for Sole Proprietorship Formation
For Individual, the following additional documents are required
- Trade Names
- Provide 3 preferred trade names (in order of preference).
- Manager's Documents
- Passport copy, visa copy, and Emirates ID of the manager(s)
- Mobile number and email address
- Shareholder's Documents
- Passport copy, visa copy, and Emirates ID of the manager(s)
- Mobile number and email address
- Ejari
- Office lease agreement (if not opting for a virtual office)
- Photograph
- Passport holding photograph
- Additional Documents
- Any other documents as requested by the authorities.
For Corporate Shareholders, the following additional documents are required
- Board Resolution
- Notarized by the issuing authority, and attested by the UAE embassy and Ministry of Foreign Affairs (MOFA) in the UAE.
- Corporate Documents
- Trade license, certificate of incorporation
- Certificate of incumbency
- MOA/AOA for the parent company, all attested by the UAE embassy and MOFA in the UAE.
How We Assist with Sole Proprietorship Formation in Dubai Mainland?
We provide comprehensive support to simplify the process of establishing your sole proprietorship. Our services include:
Business Consultation
We help you choose the right business activity and guide you through the entire formation process, ensuring compliance with DED regulations.
Trade Name Reservation
We handle the process of reserving a unique and compliant trade name for your business, saving you time and effort.
DED Licensing Assistance
Our experts assist in obtaining all necessary approvals and licenses from the Department of Economic Development.
LSA Coordination
For certain business activities, you may require a Local Service Agent. We connect you with reliable agents who assist in legal compliance without holding ownership in your company.
Ejari/Office Tenancy Assistance
Our team helps you secure an Ejari-compliant office tenancy contract, which is a mandatory requirement for all businesses in Dubai Mainland. We ensure you meet the government’s stipulations regarding office space and leasing.
Document Preparation
We ensure all your paperwork, including trade license applications and tenancy contracts, is complete and error-free.
Immigration and Visa Processing
We handle the end-to-end visa application process for you and your employees, ensuring compliance with UAE immigration laws. From residence visas to employment visas, we take care of all the paperwork and approvals.
Banking Solutions
Opening a corporate bank account can be a complex task for new entrepreneurs. We streamline this process by connecting you with reputable banks and assisting with the documentation required to open your account.
Post-Formation Support
Our services don’t end with company setup. We offer additional support such as PRO services, business renewal assistance, and other ongoing operational requirements to ensure your business runs smoothly.
Cost of Sole Proprietorship Formation in Dubai Mainland
The average cost of forming a sole proprietorship in Dubai Mainland typically ranges from AED 20,000 to AED 40,000, However the final cost can vary depending on several factors such as the type of business, the location, and the required licenses. Below is an estimated breakdown of the costs associated with forming a Sole Proprietorship in Dubai Mainland:
These cost can vary based on your specific requirements, business activity, and location. It’s advisable to consult a business setup consultant or legal advisor to get a tailored estimate for your Sole Proprietorship in Dubai Mainland.
Business Activities That Don’t Need Approval
Foodstuff Trading License in Dubai
Electronics Trading License in Dubai
Restaurant License in Dubai
IT Services License in Dubai
Project Management License In Dubai
Cosmetic’s Trading License in Dubai
Commercial Brokerage License in Dubai
Digital Marketing License in Dubai
Garments Trading License in Dubai
Business Activities That Need Special Approvals to Form a Sole Establishment Company in Dubai
General Trading license in Dubai
Real Estate License in Dubai
Gold and Precious metal trading license in Dubai
Travel agent license in Dubai
Rent a car license in Dubai
Limousine service License in Dubai
Advertisement License in Dubai
Billboard License in Dubai
Air Freight service license in Dubai
Chemicals Trading License in Dubai
Medical clinic license in Dubai
Pharmacy License in Dubai
Educational Services License in Dubai
Cloud Kitchen Service License in Dubai
Vacation home rental License in Dubai
Frequently Asked Questions
The setup process typically takes anywhere from 2 to 4 weeks, depending on the business type and documentation provided. It can be quicker if all requirements are met without delays.
Yes, a foreigner can form a Sole Proprietorship in Dubai Mainland, but the business activities must be in line with UAE regulations. A local sponsor (UAE national) is typically not required for most activities, unlike other company structures like LLCs. However, some activities may still require a local partner or service agent for specific government services.
Sole Proprietorships can operate in a variety of sectors, including:
- Consultancy and professional services (e.g., legal, accounting, design, and IT)
- Trading and retail activities
- Real estate and property management services
However, some business activities may have restrictions or require additional permits.
Yes, a Sole Proprietorship can hire employees. The owner will need to register with the Ministry of Human Resources and Emiratisation (MOHRE) and comply with labor laws and regulations regarding employee benefits and rights.
The license for a Sole Proprietorship must be renewed annually. Renewal involves submitting the required documentation to the Dubai Department of Economic Development (DED), paying renewal fees, and providing any updated information regarding business activities or employees.
Yes, in a Sole Proprietorship, the owner has unlimited liability. This means the owner is personally responsible for any debts or obligations the business incurs. It is essential to manage the financial risks of your business accordingly.
Dubai, as part of the UAE, has no personal income tax. Sole Proprietorships are also generally exempt from corporate tax, unless they are in specific sectors such as oil, gas, or banking. However, in 2023, the UAE introduced a corporate tax regime of 9% for businesses earning over AED 375,000, which may affect certain sole proprietors.
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