SOLE PROPRIETORSHIP

Are you looking to become your own boss in the UAE? Our YABS team can help make your dream a reality. Just watch our video till the end to learn all about the process of setting up a Sole Establishment in the UAE.

A Sole Establishment is a type of business structure in the UAE where a single person owns and operates the business. This means that the owner has complete control over all business decisions and is solely responsible for any liabilities or debts incurred by the business. Our YABS team can guide you through the process of setting up a Sole Establishment and help you obtain all the necessary licenses and approvals from the relevant authorities. Don't let your dreams of entrepreneurship go unrealized – contact us today to get started!

First of all, we will explain What is a Sole Proprietorship?

A Sole Proprietorship in the UAE is a legal structure where an individual owns and operates a business under their own name. The individual obtains a trade license from the Department of Economic Development, and the business is considered as an extension of the individual's personal identity.

On the other hand, a Sole Proprietorship Limited Liability Company (LLC) is a separate legal entity from the individual shareholder. This type of business structure is required to comply with the UAE Commercial Companies Law (CCL) and obtain a trade license from the Department of Economic Development.

If you are a foreign national planning to establish a Sole Proprietorship in the UAE, you will need a National Service Agent (NSA) depending on your business activity. The NSA can either be a 100% owned UAE registered company or an Emirati individual acting as a sponsor for the business.

Features of a Sole Proprietorship

With a sole proprietorship, there is only one owner who has complete control over the business.
There are no shareholders involved in this type of business structure.
The sole proprietor has 100% ownership of the business and makes all the decisions.
No business capital is required to set up a sole proprietorship, which makes it an attractive option for those with limited financial resources.
Due to its simple structure, the startup cost for a sole proprietorship is relatively low compared to other types of business entities.

What is the Registration Procedure?

To establish a Sole Proprietorship in the UAE, you need to follow several steps.

Firstly, you need to obtain initial approval from the Department of Economic Development. Then, you have to get approval for your trade name.
After that, you need to sign an agreement with a Local Service Agent (LSA). Once this is done, you can finalize your office space. You also need to get additional approvals depending on your business activity.
Finally, you need to make the payment and collect your license for your Sole Proprietorship.

Documents Required to start a Sole Proprietorship

Here are the documents required to start a Sole Proprietorship in the UAE:

A completed application form
Passport copy of the owner
Passport copy of the National Service Agent (if required)
Emirates ID copy of the owner
Copy of the local service agent agreement (if required)
Copy of the trade name reservation certificate
Copy of the tenancy contract or title deed of the office space
NOC from the landlord or title deed holder
Payment of the required fees

If you are thinking of starting a business as a Sole Proprietorship in UAE, this is the right time to do so and our Professional Team at YABS is there to guide you on Every step to Become your Own Boss.