If you are the sole business owner then it makes sense to go for sole proprietorship company in Mainland Dubai.  In this model of business, the proprietor is the sole owner of the company and bears total liability for all obligations or debts owed by the company.

There might be a confusion that if a UAE national is needed to sponsor a sole proprietorship company, how can it be a single person ownership? The reasoning is simple – a UAE sponsor is just a sleeping partner needed to register the company in mainland Dubai. He will not take part in daily operations, nor be a part of a profit-sharing model. All profits and losses are to be borne by the sole proprietor himself.

So a sole proprietorship company in mainland Dubai can be set up only if one of the two conditions are met-

1 – The owner is a UAE national
2 – The owner is not a UAE national, but is sponsored by a UAE national

Why sole proprietorship company formation in mainland Dubai makes sense?

The below advantages show why sole proprietorship is a good move

1 – There are no corporate taxes. A business owner needs to file for personal income tax only.
2 – The owner gets total flexibility to run it with total freedom.
3 – Of all types of business establishments, this form of business is the easiest and most inexpensive to set up.
4 – With the assistance of a local service agent, you can retain 100% of business ownership.

Procedure to form a sole proprietorship company

1 – Select a business activity out of the 2000 categories provided by the government.
2 – Select a legal form for sole proprietorship.
3 – Select a trade name for the business and get a trade name certificate.
4 – Apply for initial approval certificate (an NOC from Dubai government).
5 – Get a local UAE sponsor and a local service agreement.
6 – Get licensing approvals from a relevant authority like Dubai Health Ministry or Central Bank of UAE.
7 – Collect your business license and commence business operations

What details are needed to form a mainland Dubai sole proprietorship?

The below are some documents that the experts at EBS help you with

Application Form for Commercial License in the UAE
Trade Name Certificate
Valid UAE identity card for the sole proprietor
Copy of valid lease contract
Copy of signatures certified by Notary
No Objection Letter from the relevant government and legal authorities