How to Start a Sole Proprietorship Company in Dubai

A sole proprietorship is a lawful unit operated and owned by a solo person, recognized as a sole proprietorship. The sole proprietor is in proper charge of the company’s ownership and earnings and carries extensive liability.

So, if you are interested and want to know how to start a sole proprietorship company in Dubai from India then communicate with the best business set-up professionals at Start Any Business UAE who will surely help you and provide complete guidance on starting a sole proprietorship in a dedicated manner. They will make your process of establishment very easy, effective, and successful in the shortest possible time.

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A sole proprietorship is a unit controlled by a person who assumes all the financial responsibilities of the unit comprising all of its financial liabilities. Dubai recently has the most suitable environment for establishing a business throughout the United Arab Emirates.

The nation has a very advanced law covering the formation of a company because this permits both small and large business people to establish a business as per their budget. If large units have choices to establish private or public companies, then small ventures have a choice of a sole proprietorship. A sole proprietorship in Dubai is subject to the various terms and conditions prescribed by the Companies Act and Commercial Code in Dubai.

What is a Sole Proprietorship in Dubai

What is a Sole Proprietorship in Dubai

A sole proprietorship can be a better choice for business people who want to go solo in Dubai, as startup expenses are usually low and you can run your business with only a stakeholder. An eligible overseas businessman who sets up a sole proprietorship to practice a professional service is allowed 100 percent company ownership. Ventures that practice professional service and don’t expand to any commercial business are free from the Commercial Companies Law but are needed to be licensed by the Dubai DED.

A sole proprietorship company in Dubai can only be established by the citizen of the UAE or GCC citizens to carry out commercial activities. Overseas can build sole proprietorships to give only consultancy and professional services including – engineering consultancy, medical services, legal consultancy, management consultancy, IT consultancy, and more. An establishment controlled by overseas citizens is needed to hire National Services Agent to help in getting a business license, visas, and more. A national services agent is a citizen of the UAE who helps overseas in the licensing needs and other legal matters related to the government.

The Steps to Start a Sole Proprietorship Company in Dubai

The Steps to Start a Sole Proprietorship Company in Dubai

The procedure of business establishment for all the lawful forms is the same as turning in the papers. The necessary steps comprise are –

  • You need to determine the appropriate trade name for your company in Dubai.
  • Next, obtain initial approval from the DED of Dubai.
  • You need to fulfill the application form for your trade license and present it to the Department of Economic Development with all the essential documents.
  • Make the payment required and collect your business license.
  • You will have to look for an office space to conduct your services.

Documents Required for Starting a Sole Proprietorship Company in Dubai

Documents Required for Starting a Sole Proprietorship Company in Dubai

The necessary documents required to start a sole proprietorship business in Dubai are following –

  • Application form for business
  • An application for a business license
  • Trade name certificate
  • Information of the local partner, if the sole proprietor is an overseas national
  • No Objection Certification by the local partner
  • Company’s registered address proof
  • Copy of valid passport of the owner
  • Proof of residence

There may be also additional documents required depending on the business activities carried by a sole proprietorship in Dubai. Another vital point is all the necessary documents should verify and notarized with the concerned consulate of the United Arab Emirates. Since the procedure of notarization can take a long time, this must begin as soon as possible, to save valuable time. All the documents should be translated into Arabic, prior to they can be submitted to the officials in the United Arab Emirates.

Conditions to Starting a Sole Proprietorship Company in Dubai

Conditions to Starting a Sole Proprietorship Company in Dubai
  • The sole proprietor who is involved in the activities of a consultancy should need to acquire educational qualifications for the similar activity which they have chosen.
  • There is a limit to the number of managers that may be hired on a professional license.
  • The business capital is not a barrier for a sole proprietorship business.
  • The trade name should be related to the company’s commercial activity.
  • A sole proprietorship business can have over 1 branch. Every core business may perform one or all the business activities comprised in the license.
  • The business owner can also later their legal form as per the process of the Department of Economic Development.
  • A sole proprietorship may require the manager or an owner to sit an examination with an American University in Dubai in the support of the practice of some economic activities.

Benefits of Sole Proprietorship Company in Dubai

Benefits of Sole Proprietorship Company in Dubai
  • Overseas professionals can get 100% overseas ownership of the company.
  • The company can practice professional service legally elsewhere in the UAE, comprising free zones.
  • No limitations on the location where the venture buys and rents office space.
  • The government has completely waived any paid capital needs.

Also read: How To Register Company in Dubai

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