How to Set Up a One-Person UAE LLC: A Comprehensive Guide for Entrepreneurs

The United Arab Emirates now allows a single person to form a UAE LLC. This one-person company license is ideal for entrepreneurs and investors seeking to limit their liability while fully leveraging Dubai’s tax benefits.

An LLC (Limited Liability Company) is a legal entity that separates the business from the owner, protecting personal assets from company liabilities.

Here’s a guide to setting up a one-person UAE LLC in Dubai. We’ll cover:

1. Definition of a one-person UAE LLC in Dubai or
2. Ownership details of a one-person company in Dubai
3. Trade name regulations for a one-person LLC in Dubai
4. Required documents for establishing a one-person UAE LLC in Dubai
5. Costs associated with setting up a one-person company in Dubai
6. Business setup in Dubai with

One-Person UAE LLC in Dubai: What It Means

A one-person LLC in Dubai, UAE, is a Limited Liability Company owned by a single individual. Unlike a sole proprietorship, the owner is not personally liable for the company’s debts but retains full control over the business.

Recent changes in Dubai allow most commercial, industrial, tourism, and professional activities—excluding consulting firms—to operate under a one-person company structure.

Benefits of a One-Person LLC

• Ability to hire new employees as needed
• Protection of personal assets separate from company assets
• Option to file taxes as a sole proprietorship or corporation
• Eligibility to transfer ownership to others, such as family members

One-person LLCs adhere to the same regulations as other LLCs, covering both public and private shareholding company structures.

Ownership of a One-Person Company in Dubai

Key points regarding ownership:

• Foreign nationals living and working in Dubai cannot form a one-person company.
• Only UAE or GCC (Gulf Cooperation Council) citizens can establish a one-person company.
• A corporate body wholly owned by a UAE national can also form a one-person company.
• The one-person company owner, holding a one-person company license, is the company’s shareholder.
• A nominee director can be appointed but holds no authority unless the owner cannot engage in commercial transactions.
• One-person companies cannot obtain equity funding or offer employee stock options.

Regulations for One-Person LLC Operations

• The owner must appoint a manager, who can be of any nationality.
• A one-person company can have up to 11 managers.
• Any change in management must be reported to the relevant authorities within 30 days, and a new manager must be appointed within this period.

Trade Name Rules for a One-Person LLC in Dubai

The Dubai Department of Economic Development (DED) has specific guidelines for trade names for one-person LLCs:

• The trade name must include the shareholder’s name, business activity, and legal structure, followed by “LLC” (e.g., “Ali General Trading One-Person Co LLC”).
• The name can include two shareholder names (e.g., “Ali Behrouz General Trading One-Person Co LLC”).
• If not starting with the shareholder’s name, it must begin with “owned by” (e.g., “Owned by Ali Behrouz General Trading One-Person Co LLC”).

Documents Required for Setting Up a One-Person LLC in Dubai, UAE

To obtain a one-person UAE LLC license from the DED, the following documents are required:

• Attested copy of the owner’s passport
• Proof of residence
• Copy of the appointed manager’s passport
• Personal details of the company owner
• Notarized and authenticated Memorandum of Association
• Trade name of the company
• Original documents from the owner

Costs of Setting Up a One-Person Company in Dubai

Setting up a one-person company in Dubai costs between AED 10,000 and AED 30,000, depending on business type, registration fees, office rentals, and government fees.

Contact Dubai Business Service for an accurate quote on registration costs. We specialize in setting up one-person UAE LLCs in Dubai.

Business Setup in Dubai with Dubai Business Service

Partnering with Dubai Business Service simplifies the process of setting up a one-person LLC in the UAE. Our expertise ensures a smooth application process, avoiding unnecessary delays or rejections.

Provide us with basic documentation, and our team will handle the rest. They will manage your LLC license application, liaise with government departments, and prepare you to launch your new business entity. It’s that simple.