Sole Establishment UAE: 2022 Guide

Sole establishment

Looking to start your own company in Dubai? A sole establishment might be the right approach for you. If you’re new to setting up businesses and aren’t sure where to start, or you don’t know whether a sole establishment (also known as a sole proprietorship) is the best fit for you, read on. In this article, we’ll be covering:

  • What a sole establishment or proprietorship in the UAE is
  • The benefits of starting a sole establishment in the UAE
  • Costs involved in starting a sole establishment in the UAE
  • Documents required to start a sole establishment in the UAE

We’ll also touch on how Worldwide Formation can work alongside you to bring your dreams of owning a business in the UAE to life. We’re highly experienced in working alongside entrepreneurs, guiding them through the process of setting up sole establishments to make the process as streamlined as possible. The reason why this is important is because the preparatory stages of setting up your business can have lasting and significant effects on your plans over the long term. We are here to make sure all the necessary paperwork and set-up procedures are followed to the letter up-front, so you can focus on building a successful business.

What is sole establishment or sole proprietorship in the UAE?

Essentially, a sole proprietorship is needed to carry out commercial activities in the UAE. Expats are able to form sole proprietorships too, if they are providing professional or consultancy services. These may includemanagement, medical, engineering and IT consultancies or similar services.

Benefits of starting a sole establishment in the UAE

There are a wide range of upsides to setting up your own sole establishment here in Dubai. To name a few:

  • Professionals from overseas are able to retain 100% foreign ownership in the business
  • The company is legally permitted to practice professional services all across the UAE — including in free zones
  • There are no restrictions in terms of where you’re able to rent or buy office space for the company

Cost of starting a sole establishment in the UAE

For a customised quote tailored to your specific needs, get in touch today. The cost of getting set up can vary, so we’re on hand to offer bespoke advice for you and your goals.

One of the first important decisions you’ll need to make is choosing the right license for your business. So, let’s break down all the options available and the businesses they’re suited to.

In order to successfully apply for a business license in Dubai, every business must list their business activity — or activities. You will be able to choose the most appropriate option from a predetermined list, with over 2000 to choose from — so whatever your industry or line of work, there will be options that apply to your business. It’s essential that you list every activity your business undertakes; failing to cover all activities can result in fines, or even your business losing its license.

Next, it’s time to choose your company’s name. As well as your name needing to be snappy and memorable, you’ll also need to choose a name that fits the UAE’s strict naming conventions. The key information to note on this front is that UAE company names should not contain any language that’s considered blasphemous or offensive. It should also not feature the names of any well-known institutions, or any abbreviations of your own name. Using your own full name is permitted, however. It’s also important that your business name has a legal entity — such as FZE or LLC. These are just some of the criteria to consider; please do get in touch with us for a more comprehensive list.

Documents required to start a sole establishment in the UAE

A number of documents will be required to get you up and running. Among them are the documents needed to obtain your license, which will allow you to trade legally in the UAE. You will need to submit paperwork including:

  • A completed license application form
  • A copy of your passport, as the business owner
  • Two colour passport-sized photos
  • A No Objection Certificate (or NOC) from your current UAE residence visa sponsor, if this is applicable

You will also need to apply for a visa, if you don’t have one already — and additional documents may be needed, depending on your specific circumstances. For an exhaustive list of everything you’ll need to have prepared to get set up, please get in touch with Worldwide Formations and we’ll be happy to help manage your application process.

Dubai: filled with business opportunities

A question you might ask yourself is: why Dubai, and the United Arab Emirates? Why have Worldwide Foundations focused on establishing such a strong presence in this area of the world? The fact is, there aren’t many other locations on the planet that offer the growth opportunities found in Dubai and the surrounding areas. Over recent decades, trading has grown and spread across this region — making it a very exciting prospect for business owners across a range of industries.

With the largest number of free zones in the UAE, Dubai truly is a powerhouse of business productivity. In turn, this hub of wealth and industry attracts world-class talent — and has established the city as a desirable destination for leisure as well as business. As a result, Dubai has recently emerged as one of the top ten most preferred business destinations in the world. So, if you can’t wait to be a part of this incredible community, get in touch with us today and we’ll set the wheels in motion to help make it happen.

Why choose Worldwide Formations?

Making sure you’ve gathered all the necessary documents to get a sole proprietorship business set up in Dubai can feel daunting at times. But we’re on hand to help; our expert teams are highly experienced in supporting businesses like yours in completing their applications — offering guidance and insight at every step to ensure you’re up and running fast, with minimal stress. Get in touch today for a personalised quote.

At Worldwide Formations, we’ve been working on supportive business owners and entrepreneurs like you for the last 15 years. We have made it our goal to help you turn your business dreams into reality, working closely with our clients to build businesses from the ground up — and always ensuring that the appropriate legal hoops are jumped through every step of the way. We are one of the leading names in our industry in the UAE, in terms of getting businesses set up and operating in line with Dubai’s legal standards and regulations. We are proud to work in this field because we know that there can be many stumbling blocks when it comes to setting up a company in this part of the world. However, it’s absolutely worth the effort of doing so: there truly are few places on the planet that offer the exciting business opportunities found here in Dubai, and across the United Arab Emirates.

Office 611 & Lobby Level

The Fairmont Dubai,

Sheikh Zayed Road

PO 33964 Dubai, UAE

Office Hours :- 8:00 am to 5:00 pm
(Monday to Friday)