Sole Proprietorship in Dubai

Do you want to set up a business of your own in Dubai? Sole proprietorship can be an option for you as the cost incurred for set up is minimal and you can be the only shareholder. Establishing a sole proprietorship in Dubai will enable you to take advantage of 100% company ownership, repatriation of capital and profits, and import/export tax exemptions.

Here, we take a detailed look at aspects related to sole proprietorship in Dubai.

What is a Sole Proprietorship?

A sole proprietorship, also known as sole establishment is a business entity which is owned by only one individual who has a trade license. The person is liable for the business activities carried out by the company. A sole proprietorship can be formed in UAE irrespective of whether you are a citizen of UAE, GCC or a foreign national.

Advantages of Setting a Sole Proprietorship in Dubai

For setting up a sole establishment in Dubai, you can enjoy certain benefits like  the ones mentioned below:

  • The registration process is fast and simple.
  • By setting up a sole proprietorship, you get maximum privacy when it comes to your business.
  • You can keep full ownership of the company and retain all the profits. 
  • All paid-up capital requirements are waived by the UAE government.
  • There is no restriction on the location of purchasing/renting office space for the company.
  • Your company can legally practise professional services anywhere in the UAE, including Free Zones.

 How to Register a Sole Establishment in Dubai?

The process which you need to follow for business setup in Dubai involves the following steps:

  • Get Initial Approval from DED

To proceed with setting up a sole proprietorship in Dubai, you need to get initial approval from the Department of Economic Development (DED). This primary approval is needed as it implies that the government has no objection with you starting a business.  

  • Get Approval on the Trade Name

Depending on the business activity, you need to decide on an appropriate trade name. It must comply with UAE regulations.

  • Approval(s) from other Departments

In addition to DED approval, you might need to get approvals from other departments too depending on the commercial activity of your business. 

  • Get an Office Space

To run the business, it is necessary to have a physical office in the Emirate. So, you need to finalise an office space and get a tenancy contract.  

  • Sign LSA Agreement 

You will need to prepare the local service agent (LSA) agreement and sign it along with your LSA.  

  • File Application for Registration of the Business

You need to submit an application to the concerned authorities for registration of your business in the Emirate along with the necessary documents.

  • Pay the Requisite Fees and Obtain a Licence

The next step involves you paying the fees and obtaining the licence to commence your business operations in Dubai. 

Documents needed for Sole Establishment in Dubai

At the time of submitting the application for registration of sole establishment in Dubai, the following documents are needed:

  • Copy of Passport
  • Copy of UAE resident visa
  • No Objection Certificate (NOC) from resident visa sponsor
  • Proof of educational qualifications and professional experience
  • Proof of any other relevant experience

In case you appoint a general manager, certain other documents like his/her passport copy, address proof, resume and bank/professional reference of the employee also needs to be submitted. 

Many professionals prefer to set up a sole proprietorship in Dubai. Commitbiz, has years of expertise in company formation, which can help your business gain a robust foothold in this growing economy. Get in touch with our experts, who will handle all the formalities and legalities when it comes to the set up of sole proprietorship in Dubai.


What kinds of activities can be carried out as a single proprietorship?

Expatriates may only create single businesses to provide professional services such as management, medical, engineering, and information technology consultancies or comparable services.


Can we open a bank account for a sole proprietorship?

Yes, we can open a bank account in any UAE bank.


Who issues a license to open a sole proprietorship company in Dubai?

The Department of Economic Development issues a license for opening a sole proprietorship company in Dubai.



How many trade names can be given as options for the sole proprietorship registration process?

  • You can give three trade names as options for the sole proprietorship registration process.