Set up a Sole Establishment/Proprietorship


To set up a sole establishment company, or sole proprietorship company, firstly you need to have a better understanding of this legal form. In fact, the owner of a Sole Proprietorship business will be an individual, not a company. This person will own 100% of the business, control all its operations and keep 100% of any profits. Certainly, he or she will also be 100% responsible for business debts and any other financial obligations. An individual of any nationality can own a professional-type sole proprietorship. If the owner is a National of a country other than the UAE or GCC, they require a Local Service Agent (LSA) in support of the license. A corporate body cannot own a sole proprietorship.

Set up sole establishment
Rules and Regulations
  • The owner of a sole proprietorship engaged in consultancy activities must have obtained an education qualification for the same activity selected.
  • There is a limitation to the number of managers that can be appointed on a professional license.
  • A business capital is not a constraint for a sole proprietorship.
  • The trade name should be related to the commercial activity of the firm.
  • A sole proprietorship can have more than one branch. Each may undertake one or all the activities included in the main business license.
  • The owner/s can also change its legal form according to DED procedures.
  • A sole proprietorship may require the owner or a manager to appear for exams with an American University in Dubai in support of practising certain economic activities. These exams are needed at the time of setup and renewal of license.

To set up a sole establishment company or sole proprietorship company, you can contact our experts for a free consultation. We will help you in setting up a sole establishment company in Dubai, Abu Dhabi, Sharjah and the UAE with proper guidelines.