![]() ![]() The company would not be a separate entity. ![]() All business debts and company financial decisions would be directly associated with the business owner. In a sole proprietorship, the owner is personally liable for all debts and obligations of the business. Not really a disadvantage– for all sole proprietorship companies, physical offices are compulsory as per the rule from the department of economic development (DED). And if you make an efficient business plan, those advantages can turn into benefits. With advantages come a few disadvantages. Are there any disadvantages to having a sole establishment in UAE? It can be a free zone or any other location. No limitation of office locationĪ sole proprietorship gives you the leverage of having office premises in any location in the UAE. The sole establishment UAE has one of the easiest and less-required document registering processes. That all makes it an affordable business option. Sole establishments or sole proprietorships require zero capital investment and a minimal seeding budget. Having 100% ownership of the business means keeping the 100% profits of the company as well. You will be personally liable for all the obligations. What are the advantages of a sole establishment license? Owned by one:Įxpats have the advantage to be the sole owner of the company without any shareholders or sponsors under sole proprietorships. Rather, you can offer IT, marketing, consultancy, legal, and engineering services. For example, you would not be allowed to be a sole proprietor in trading, real estate, or import-export business. However, if you are a foreigner, you are only allowed to set up a sole establishment in certain fields. You can have a consultancy firm with local service agents providing different business advice. You can provide services in real estate, the trading field, import-export, and many other industrial services. In a sole proprietorship, you have many options to explore. Who can Set Up a Sole Proprietorship in the UAE?Īny entrepreneur can form their sole establishment in the UAE regardless of whether they are UAE nationals, GCC natives, or expats. It is advisable to contact the Department of Economic Development (DED) for the most up-to-date information on the cost of obtaining a license for different business structures in Dubai. It’s important to note that these are general estimates and the actual cost may vary depending on the type of business and the specific requirements of the license. Branch office: The cost of a branch office license in Dubai can range from AED 40,000 to AED 80,000 per year, depending on the type of business and the size of the office space.Limited liability company (LLC): The cost of an LLC license in Dubai can range from AED 25,000 to AED 60,000 per year, depending on the type of business and the size of the office space.Sole proprietorship: The cost of a sole proprietorship license can range from AED 7,500 to AED 50,000 per year, depending on the type of business and the type of license required.In Dubai, the cost of obtaining a license for a sole proprietorship can be compared to the cost of obtaining licenses for other business structures, such as a limited liability company (LLC) or a branch office. These estimates are subject to change, and it is advisable to contact the Department of Economic Development (DED) for the most up-to-date information on the cost of obtaining a sole proprietorship license in Dubai. The cost of a local sponsor can range from AED 20,000 to AED 50,000 per year, depending on the arrangement made with the sponsor. Local sponsor fee: A local sponsor is required for non-UAE nationals setting up a sole proprietorship in Dubai.Activity-specific licenses: The cost of activity-specific licenses can vary, but they typically range from AED 5,000 to AED 50,000 per year, depending on the type of license and the nature of the business.Commercial license: The cost of a commercial license can range from AED 12,000 to AED 20,000 per year, depending on the type of business and the size of the office space.Trade license: The cost of a trade license can range from AED 7,500 to AED 15,000 per year, depending on the type of business and the size of the office space.The cost of obtaining a sole proprietorship license in Dubai can vary depending on the type of business and the type of license required. ![]()
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