Setting up a Sole Proprietorship in Dubai

Sole Proprietorship

A sole proprietorship in Dubai is a legal entity owned and operated by a single individual, known as the sole proprietor. The sole proprietor is in complete control of the company’s operations and profits and bears unlimited liability, that is, he/she is fully liable for the company’s debts or and obligations.

This type of company can be formed only by a UAE national or a national of the Gulf Cooperation Council (GCC). For a foreigner establishing a sole proprietor company would require him/her to have a residence permit and a local sponsor. Only then the company can be formed, and any professional or commercial activity can be started but in order to do so the foreigner needs to obtain appropriate license. 


The following documents must be filed with the Trade Register to set up a sole proprietor company in Dubai:

• -          Business application form

• -          Licensing application form

• -          Name, residence permit and passport copy of the sole proprietor

• -          Details of the local sponsor, in case the sole proprietor is a foreign citizen

• -          No-objection letter by the sponsor, if applicable

• -          Proof of registered address of the company

• -          No-objection certificate (NOC) by the sponsor, if applicable