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As the name suggests a sole establishment or a sole proprietorship Dubai is a form of business owned completely by a single individual. Which means a corporate body cannot own a sole proprietorship.  The person owns 100% of the business. This gives the owner complete control of the business and 100% of the profits Thus, making him or her 100% liable for any debts or losses too.

An individual of any nationality can go about with setting up a sole proprietorship also known as a professional license. However, if the individual is a national of any country other than the UAE or GCC, they need a Local Service Agent (LSA) in support of the license. A service agent’s responsibilities are to render necessary services to the company. Such as support with the Department of Immigration, Department of Economic Development, and the Ministry of Labour. They hold no financial liabilities or obligations related to the company inside and outside the Emirate.


  • A sole proprietor setup is mostly engaged in professional activities. Such as, medical services, engineering consultancies, management consultancies, legal consultancies, IT consultancies and similar services. Many of the activities under this legal form need the owner or manager to show specific educational qualifications to get the license.
  • It may also need the owner / manager to appear for exams in support of their qualifications in UAE. These exams could be a yearly requirement based on the activities chosen. The American University in Dubai hold these examinations.
  • Some of the activities may also need the manager of the license to prove his experience in this industry.  For example, work experience letters to qualify to be a manager of the license.
  • All documents related to the education qualification or work experience letters that are not from the UAE need attestation.  The Department of Education and the UAE consulate in the country of origin can assist with this. Then, the originals need attestation from the ministry of foreign affairs UAE. Also, if the education documents are in a language other than Arabic or English, they need legal translation into any one of these languages. Hence, this is an important rule for registering a sole proprietorship.


  • There is a limitation to the number of managers that a sole establishment can appoint.
  • A business capital is not a constraint for a sole proprietorship Dubai.
  • A business capital is not a constraint for a sole proprietorship.
  • There should be a relation between trade name should and the commercial activity of the firm.
  • There are regulations and limitations on the number of branches that a sole establishment can have. However, each branch may undertake one or all the activities included in the main business license.

To know more about setting up a sole proprietorship / sole establishment Dubai, fill out our contact form or contact us on +971 4 428 1505+971 52 704 6939, +971 52 667 9677, or email us at