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Sole Proprietorship Business Setup in the UAE

A Sole Proprietorship Company in Dubai can be formed only by a UAE national or a national of the Gulf Cooperation Council (GCC). For a non-UAE national, establishing a sole proprietor company would require him/her to have a residence permit and a local sponsor. They can be a Dubai national or company. In case the sole proprietor is to carry out a professional or commercial activity, he/she must obtain the appropriate license.

Unlike a UAE Limited Liability Company (LLC), which requires that at least 51% of shares must be registered to a UAE/GCC national sponsor, a qualified foreign investor that sets up an establishment or sole proprietorship to practice a professional service is permitted 100% ownership in the company.

Establishments that are owned by foreign nationals are required to appoint a National Service Agent (NSA) to assist in obtaining licences, visas etc. NSAs have no direct involvement in the business. Sovereign is able to act as the NSA.

Key steps to setting up an Establishment or Sole Proprietorship :

  1. Speak with one of Alya’s consultants who will advise on the correct legal structure based on the activities that a business intends to undertake in the UAE and its intended markets. A client may further choose to obtain a legal opinion to confirm Sovereign’s advice.
  1. Appoint a National Service Agent (NSA), which must be either a UAE national or a company wholly owned by UAE nationals. Alya auditors business consultants has created a number of 100% UAE-owned LLCs that it fully manages and controls through power of attorneys and other legal agreements. These companies can act as the NSA.
  1. The required documentation for registration and approval will include but is not necessarily limited to:
  • Certified passport copy for the shareholder;
  • Copy of the UAE residence visa, if applicable;
  • No Objection Certificate (NOC) from current UAE residence visa sponsor, if applicable;
  • Proof of education, professional qualification or experience, if required;
  • Certified passport copy for the General Manager;
  • 2 x Certified proofs of address for the General Manager;
  • 1 x CV for the General Manager;
  • 1 x Professional / bank reference letter for the General Manager.
  1. All documents are required to be notarised and attested in both the applicant’s home country and at the relevant UAE consulate. The notarisation process should be commenced as early as possible because it can take a significant time.
  1. All documents must also be translated into Arabic by an official translator before they can be presented to the authorities in the UAE.
  1. All requested documents to be submitted to Sovereign, which will then manage the application process from start to finish.

How can we help?

Business setup in Dubai is a lucrative choice, and it is pivotal that a businessperson selects the most appropriate company structure to conduct one’s operations. Alya  supports companies globally to set up their business in Dubai by handling all the formalities and legalities of sole trader company registration from start to finish. Our team of experts has years of expertise in company formation in Dubai, which can help your business gain a robust foothold in this growing economy. Contact us for business setup services in Dubai, and we’d be glad to assist you.

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