How to form a sole proprietorship company in Dubai?

Sole Proprietor Company in Dubai

Let us begin with understanding what a sole proprietor actually is in Dubai! It is a person who owns a Sole Proprietorship in Dubai which is operated and legally owned by a single person. The person whom we call sole proprietor is obliged to control all the company activities. He or she is in control to bring profits and are liable for all the economic things happening to the company. That is why he or she is completely at fault for company debts or other obligations.

A company of this kind and its formation is actually launched by a UAE national or any other national of the GCC or Gulf Cooperation Council. If you are a non-UAE national then you need a residence permit along with a trusted local sponsor to establish the company. If the person wants to work on commercial activities then it is an obligation for the person to get his or her hands on the appropriate license.

What are the conditions to know before setting up a Sole Proprietorship in Dubai?

It is important to know about the conditions of the setting up of the business. We would say it is foolish from your side if you ignore such details. So let us understand the condition and hence move on with the business setup.

  • When a sole proprietor engages in consulting activities, he or she must have received an academic certificate for the same activity.
  • Only a certain number of managers is allowed to be appointed with the given license
  • For a business like a sole proprietorship, capital is really not a limitation as you don’t have to need it a lot to get it started 
  • The name you choose for your company should be associated with the real commercial activity
  • Next thing is that you can have more than one when it comes to setting up branches
  • When setting up branches, each may take up at least one or even all the activities attached to the business license
  • Another important condition is that the freedom of the owner or owners to change the legal form but it is according to the DED process
  • When you are taking up the role of the owner or manager then you ought to appear for the exams conducted by an American University in Dubai. It is to prove that you are capable of engaging in economic activities and this is ultimately necessary at the time of business setup and during the license renewal.

How to get it started?

So you want to start a Sole Proprietorship in Dubai? Let us learn how to get it started with simple steps! For the UAE company register, you will need the following:-

  • Choose the best name! Decide one that is attractive yet enlightening for your targeted customers
  • Next up is to get approvals from the Dubai Department of Economic Development or DED
  • Get hands-on all the essential documents for the businesses setup
  • Now you have to get done with business license
  • You ought to pay a certain sum of money and then obtain the license
  • Buy or rent an office space to work on

What are the documents you need for a sole proprietor company in Dubai?

 Now let us look at the list of documents you don’t want to miss when you are going for a Dubai business setup. Never take a chance on skipping these because ultimately it takes away more of your time on the business setup.

  • Firstly you need the business application form
  • Next, you will need licensing application form
  • You need to submit your name along with residence permit and passport copy of the sole proprietor
  • If you are a foreign citizen then you ought to submit details of the local sponsor
  • If you have a sponsor then you might need a no-objection letter 
  • After that, you have to provide proof of registered address of the company

For setting up the company, you ought to go after the documents. It must be thoroughly invested and attested by the corresponding UAE consulate to prove its authenticity. The next important thing you have to keep in mind is that you need an official translator. This is for the translation of the documents to Arabic for the UAE authorities.

What are the benefits of having a Sole Proprietorship Business in Dubai?

What are the benefits of having a Sole Proprietorship Business in Dubai?

Lets us now understand the ultimate advantages of having a Sole Proprietorship Business in Dubai

  • The proven company can work anywhere legally throughout  UAE including  the free zones
  • The professionals who are foreign can have 100% access to the business as foreign ownership
  • You won’t find any type of objections against choosing a location whether to buy or rent and office space
  • There is no such paid up capital requirements from the government’s side from your business


UAE settled engineers, doctors, management consultants, IT graduates all of them wants to set up a sole proprietorship in Dubai. Dubai has always been the best place to start a business. It works out just fine when it is a sole proprietorship. You don’t have to worry about your budget if you have a strong will to start and an unending fire to keep it successful. The country is fully-fledged to provide you with every type of business legalisation that fits both small and large business investors.

For instance, large investors can easily set up public or even private companies. On the other hand, small investors can opt for a sole proprietorship. According to the Commercial Code and the Companies Act in Dubai, a owner of a business is under certain terms and conditions. Also,  if you need any kind of business setup help then don’t ever shy away from the best business consultants in Dubai. They can make it easy for you as they are experienced and have a great team by their side. The excellent team is constantly upgraded with the knowledge of Dubai business setup.

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