Sole proprietorship, one of the oldest forms of business, is also the most common legal structure available for business setup in Dubai mainland. The chemists, grocers, or even IT consultants, freelancers and entrepreneurs that you see around your neighbourhood could be mostly sole proprietors. A sole proprietorship could be defined as an entity owned by one individual with the trade license issued in his or her name. Under this type of company formation in Dubai, the owner has to shoulder all the financial responsibilities of the entity including the liabilities.
Requirements for Setting up as a Sole Proprietor in Dubai
Since being owned by an individual, the process of business setup in Dubai for a sole proprietorship is fairly straightforward. However, there are certain prerequisites that you need to follow to register as a sole proprietor in Dubai. They are,
1. Only UAE or GCC nationals can carry out commercial or industrial activities
2. Foreign investors can conduct activities under the Professional license
3. Foreign investors must appoint a Local Service Agent (LSA) which can be a UAE national individual or a UAE national Company
4. Foreign investors can conduct consultancy activities but certain consultancy activities could be carried out only by UAE nationals
5. Investors need to rent/lease an office space
Process of Registering a Sole Proprietorship in Dubai
The license for all forms of business setup in Dubai mainland is issued by the Department of Economic Development (DED) and a sole proprietorship also needs to be registered with the DED. To obtain a license in your desired activity there is a series of steps involved which can be made easier with the help of the best business setup consultants in Dubai. Here are the steps to register a sole proprietorship in Dubai mainland:
1. Choose a Business Activity
2. Identify Legal Structure (here it is Sole Proprietorship)
3. Reserve a trade name
4. Obtain Initial approval
5. Obtain external approval if any special activity
6. Rent an office space
7. Collect license
List of Documents Required
Setting up a business in Dubai as a sole proprietor involves simple and straightforward steps. However, the entrepreneurs need to be ready with the required documents that would make the process of business setup in Dubai quick. Business setup consultants in Dubai recommend the investors gather the following documents before applying for the DED license:
1. Application form
2. Information about LSA (for foreign entrepreneurs)
3. Copy of passport of the business owner
4. Proof of registered address
5. Residence permit
6. NOC from sponsor
There could be additional documents depending upon the activities and the DED requirements. Further, all the documents should be notarized and attested. The notarization process could be lengthy and time-consuming but the assistance of efficient business setup consultants in Dubai may ease the process.
Benefits of Setting up a Business in Dubai as Sole Proprietor
Starting a business in Dubai as a sole proprietor comes with a wide range of benefits. They are,
1. Flexibility to run business with full freedom
2. No corporate taxes
3. Unlike other forms of business setup in Dubai, Sole Proprietorship is easy and less costly
4. No minimum requirement of business capital
5. 100% ownership with the appointment of LSA
Seek Advice from Business Setup Consultants in Dubai
Business setup in Dubai offers entrepreneurs a wide range of legal structures to choose from and among them, the sole proprietorship is characterised by the low-cost and easy setup procedures. A Sole Proprietorship is a legal entity that only an individual can own provided the owner assumes all the financial responsibilities including the liabilities. With the help of efficient business setup consultants in Dubai, both UAE nationals and foreign investors can start a sole proprietorship business quickly.
When it comes to choosing the right business setup consultants in Dubai, Jitendra Business Consultants (JBC) stands out due to industry experience and the low-cost business setup packages in offer. JBC has a team of highly qualified business setup consultants whose legal know-how and experience in handling officials at various government departments make the process of business setup in Dubai easier. JBC also provides efficient PRO services which effectively solves all the visa-related requirements of investors including visa application, medical tests, sponsoring of dependents, document clearance etc. JBC also takes care of requirements like VAT registration, VAT return filing, trademark registration etc. JBC’s able to support foreign investors can easily achieve their business goals in Dubai.