Sole Establishment Dubai became popular more than before as Dubai is a thriving hub for entrepreneurs, offering unparalleled opportunities for foreign nationals to establish their dream businesses in the UAE, one of the most business-friendly nations globally.

For those looking to start a business, a sole establishment in Dubai (also known as a sole proprietorship) is a popular choice. However, you may wonder how it differs from an LLC (Limited Liability Company) in the UAE. Dubai Business Service, experts in business setup, are here to guide you through the process and clarify the distinctions.

In this comprehensive guide, we’ll cover:

• What is the sole establishment Dubai?
• Advantages and disadvantages of a sole establishment in Dubai
• Comparison: Sole establishment Dubai vs. LLC in the UAE
• Step-by-step guide to starting a sole proprietorship in Dubai
• How Dubai Business Service can assist you

What is a Sole Establishment Dubai?

A sole establishment is a business owned entirely by one individual, with a trade license issued in their name. This structure means that companies or corporate entities cannot own the business, and the owner is personally liable for all business activities, including debts and liabilities.

Foreign nationals wishing to establish a sole proprietorship in Dubai must obtain a professional trade license. This license is tailored for service providers such as IT consultants, engineers, accountants, legal professionals, and more. However, it’s important to note that a sole establishment cannot engage in trading, import-export, or real estate development activities in the UAE.

Additionally, foreign-owned sole establishments must appoint a Local Service Agent (LSA), a UAE national or UAE-owned entity, to handle administrative tasks and government liaison. Dubai Business Service can assist you in selecting a reputable LSA for your business.

Advantages of a Sole Establishment Dubai

• 100% Ownership: Foreign nationals enjoy full ownership of their business.
• Profit Retention: Owners retain all profits generated by the business.
• Affordable and Quick Setup: Sole establishments have low setup costs and require no capital, making them one of the fastest business structures to establish in the UAE.
• No Location Restrictions: A sole establishment can operate anywhere in Dubai, with no limitations on office location.

Disadvantages of a Sole Establishment Dubai

• Personal Liability: The owner is personally responsible for all business debts and liabilities.
• Mandatory Office Space: Sole establishments must operate from a registered office, which is a legal requirement.
• Business Liabilities: Selling a sole establishment may be challenging, as potential buyers might be deterred by existing debts or liabilities.

Sole Establishment vs. LLC in Dubai

The key difference between a sole establishment and an LLC is ownership. A sole establishment Dubai is owned by one person, while an LLC must have multiple owners, either individuals or corporate bodies. Additionally, sole proprietorship owners are personally liable for business debts, whereas LLC owners’ liability is limited to their investment in the company.

Another distinction is that LLC owners can obtain multiple visas without restrictions and purchase real estate, privileges not available to sole proprietorship owners under the business’s name.

Step-by-Step Guide to Starting a Sole Establishment Dubai

1. Partner with Dubai Business Service: Begin by partnering with Dubai Business Service, who will manage every step of the process to ensure a smooth setup.
2. Choose Your Business Activities: Select your business activities from the Department of Economic Development (DED) list to be included in your trade license application.
3. Obtain Initial Approval: Submit your chosen trade names and obtain initial approval from the DED.
4. Appoint a Local Service Agent: Select and appoint an LSA to handle administrative tasks and government interactions.
5. Secure Office Premises: Lease a registered office space as required by law.
6. Apply for Your Trade License: Submit all necessary documentation to the DED, receive a payment voucher, and collect your trade license upon approval.
7. Apply for Your Visa: Once your trade license is issued, apply for your UAE residency visa, including any necessary medical tests and biometric scans.

Working with Dubai Business Service

Simplify the process of setting up a sole establishment in Dubai by partnering with Dubai Business Service. Our experts handle every aspect of the business setup, from documentation to liaising with local authorities, ensuring a smooth and efficient process.

With Dubai Business Service, you can focus on your business while we take care of the rest. Start your entrepreneurial journey in Dubai with confidence, knowing that Dubai Business Service is here to guide you every step of the way.