Sole Proprietorship Formation in Abu Dhabi

The United Arab Emirates (UAE) offers some of the most current business incorporation regulations, and it allows both major and small-size business investors to incorporate according to their budget. Individuals, for example, can register a sole proprietorship in any of the Emirates, whilst major firms can establish private and public companies.

Abu Dhabi's pro-business climate allows investors to establish their operations using a variety of company structures. As previously said, foreigners can invest in the capital in any of the legal forms, and the most popular one out of all other business set up in Abu Dhabi is a sole proprietorship company formation- Abu Dhabi.

Sole Proprietorship Abu Dhabi

Abu Dhabi citizens and residents of Gulf Cooperation Council (GCC) nations can establish single trade firms in Abu Dhabi. A sole proprietorship is a business that is held by a person who holds a valid trade license in his or her own name. 

The owner of the firm, also known as a sole trader, bears all of the entity's financial duties, including all of its financial liabilities.

In contrast to an Abu Dhabi Limited Liability Company (LLC), which requires at least 51% of shares to be registered to a UAE/GCC national sponsor, a qualified foreign investor who establishes an establishment or sole proprietorship to practice a professional service is permitted to own 100% of the company.

Features of Abu Dhabi Sole Proprietorship

A sole proprietorship in Abu Dhabi has unique features. They are

  • Only UAE or GCC nationals may own a business or industrial single proprietorship.
  • The owner of a consultancy type single proprietorship should be scientifically qualified for the activity chosen.
  • A sole proprietorship can only have one management.
  • A sole proprietorship has no minimum capital requirement.
  • The business name should be relevant to the activity.
  • A sole proprietorship can have branches that can undertake all the operations covered by a parent company's license.
  • The company and its branches can be sold; however, the industrial or commercial kind of company can only be sold to UAE or GCC citizens.

Individuals of any nationality can be sole merchants in Abu Dhabi, but they must prove their professional qualifications. Foreign investors in Abu Dhabi can engage a commercial agent to operate on their behalf in lone trader business activity. If you wish to work as a medical professional or an engineer in the Emirate, this Local Service Agent can assist you.

Benefits of Sole Proprietorship Company Formation in Abu Dhabi

There are a ton of benefits of starting a business in Abu Dhabi and the same goes for the sole proprietorship company formation in Abu Dhabi lets see a few of them.

  • Sole proprietorships in Abu Dhabi catering to investors that want complete ownership and accountability for losses and earnings.
  • Sole traders can also start their businesses in Abu Dhabi's free trade zones.
  • Entrepreneurs in Abu Dhabi might work in the medical or information technology industries, or they can provide financial management and consulting services.
  • Foreigners may invest in Abu Dhabi as solo traders in their own names.
  • There are no limits on where the corporation can rent or acquire office space.

Documents Required for starting a Sole Proprietorship in Abu Dhabi

To start a sole proprietorship in Abu Dhabi you require a certain set of documents. They are,

  • Certified passport copy of the shareholder
  • Copy of the UAE residence visa, if applicable
  • No Objection Certificate (NOC) from current UAE residence visa sponsor, if applicable
  • Proof of education, professional qualification, or experience, if required
  • Certified passport copy of the General Manager
  • Two copies of Certified proofs of address for the General Manager
  • One copy of CV for the General Manager
  • One copy of the Professional/bank reference letter for the General Manager

The documents mentioned above must be attested and notarized.

Sole Proprietorship Company Formation Abu Dhabi Procedure 

The Abu Dhabi sole proprietorship must be registered with the Department of Economic Development in Abu Dhabi (ADDED). The procedures for incorporating a company in Abu Dhabi are straightforward and clear making it easy for you to start your business in Abu Dhabi mainland

Select a Business Activity

Decide the type of business activity to apply for obtaining a business license

Choose a Trade Name

Decide on a trading name and register the same. The trade name must be unique and should not match the name of an existing business in Abu Dhabi

Submit all the Documents

Submit the required documents to the DED. The documents are mentioned above. Also, pay fees

Get Your License

Obtain a license and get membership from the Chamber

Look Out for Office Space

Get a rented office space (if required)

Even though the steps are simple, it can be complicated for someone who is not well-versed with the legal aspects of the UAE. That is where business setup consultants like Commitbiz come into the picture. We work our best to fulfill all your business needs. Contact us for more details


What is sole proprietorship in Abu Dhabi?

A company that is held by a single person and licensed under them is a sole proprietorship.

Can sole proprietorship be started in free zones of Abu Dhabi?

Yes, you can start a sole proprietorship establishment in free zones.

What is the minimum capital of Abu Dhabi Sole proprietorship?

There is no minimum capital required.

Can an Abu Dhabi sole proprietorship have multiple managements?

No, it can have only one management.

Can a foreigner start a sole proprietorship establishment in Abu Dhabi?

Yes, Abu Dhabi encourages foreign investors.