Sole Proprietorship in Dubai
Ready to start your business solo in Dubai? A sole proprietorship gives you complete control and faster setup. Whether you're a professional consultant or freelancer, it's the simplest way to establish your business. We'll guide you through the entire process.
What is a Sole Proprietorship?
A sole proprietorship is the simplest type of business structure in Dubai, owned and managed by one individual. It gives the owner full control over daily operations, decision-making, and all profits earned by the business. However, the owner also carries unlimited personal liability, meaning personal assets may be used to cover business debts or legal claims. Registration is completed through the Department of Economic Development (DED), which manages the licensing and approvals required to operate legally in the city. This structure is ideal for skilled professionals who want independence and complete authority over their work.
Foreign nationals can open a sole proprietorship for professional activities only, such as consulting, IT services, design, training, and certain healthcare or advisory roles. In these cases, a Local Service Agent (LSA) is required to assist with government procedures, but the agent does not have ownership or control. UAE nationals have more flexibility and may conduct a wider range of activities, including trading and commercial services. Operating a sole proprietorship on the Dubai Mainland also gives direct access to clients across the UAE, making it a strong choice for service-based professionals who want to work without restrictions.
One of the main advantages for foreign professionals is the ability to maintain 100% ownership without the need for a local partner or sponsor. This allows individuals to build their own brand, manage their own revenue, and grow at their own pace. The setup process is straightforward, cost-effective, and offers quick market entry. For freelancers, consultants, and skilled experts who want a simple structure with full control, a sole proprietorship provides an accessible way to establish a presence in Dubai's competitive business environment.
Steps to Sole Proprietorship Formation in Dubai
Setting up a sole proprietorship in the UAE involves choosing your activity, reserving a name, obtaining initial approval, securing an office space, and receiving your license. The entire process takes 5-10 working days.
Choose Your Professional Activity
Reserve a Sole Proprietorship Name
Obtain Initial Approval from DED
Appoint Local Service Agent (If Expatriate)
Secure an Office Location
Apply for Trade License
Register with Chamber of Commerce
Begin Business Operations
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Benefits of Sole Proprietorship
Complete Control
Own and operate your business independently. Make all decisions without shareholder approvals or partnerships.
Lower Setup Cost
Costs range AED 15,000-AED 20,000 annually. Significantly cheaper than LLC formation and ongoing compliance.
Simple Registration
Minimal paperwork and straightforward process. Get licensed faster than complex business structures.
Professional Recognition
Operate in professional services, consulting, IT, healthcare. Direct market access without restrictions.
Full Profit Retention
Keep 100% of business earnings. No profit-sharing or dividend distribution obligations required.
Flexible Operations
Add branches, change activities easily. Minimal ongoing reporting requirements or regulatory compliance.
How Much Does Sole Proprietorship Cost in Dubai?
Sole establishment registration on Dubai Mainland costs AED 18,500-AED 20,000 annually. Trade name reservation costs AED 700-AED 1,200. LSA fees for expatriates range AED 5,000-AED 10,000 yearly. Professional documentation add AED 1,000-AED 2,000. Total mainland startup ranges AED 20,700-AED 36,200 depending on activity. Free zone sole establishments cost less, starting from AED 7,500-AED 12,000 annually with lower LSA fees. However, free zones limit market access compared to mainland operations.
Rizmona manages your sole establishment registration to control costs efficiently. We guide you toward the right professional activity avoiding unnecessary fees and coordinate directly with authorities reducing intermediary costs. Strategic planning saves money on amendments and resubmissions.
Sole Proprietorship Cost Calculator
Get a full cost breakdown for your sole establishment setup in Dubai.
How We Help with Sole Proprietorship Formation
Professional Activity Guidance
Professional activity guidance to identify and select the right service sector for you.
Documentation Preparation
Complete documentation preparation meeting all government requirements precisely.
DED Liaison & Approvals
DED liaison and approval coordination handling all interactions directly.
Local Service Agent Setup
Local Service Agent agreement preparation and finalization for expatriate owners.
Trade License Application
Trade license application and registration from submission to issuance.
Chamber Registration
Chamber of Commerce registration and business startup support.
How Can We Help You?
Ready to start your Dubai business? Our experts are here to guide you through every step of your entrepreneurial journey.
