MAINLAND SOLE PROPRIETORSHIP IN THE UAE
OVERVIEW
ADVANTAGES
LICENSING CATEGORIES
COMPANY TYPES
OVERVIEW
UAE has one of the most modern legislation that allows simple business setup for both small and large investors. Sole proprietorship in UAE is a legal entity owned or operated by a single individual with a trade license issued in his/her own name. The owner takes up all the responsibilities of entity including the financial liabilities. Any business establishments that practice professional services and don’t extend to any commercial business are exempted from the CCL or Commercial Companies Law. But, it’s essential to be licensed by the Department of Economic Development or DED. We can help you with incorporating a Sole Establishment in Dubai or anywhere in the United Arab Emirates.
Unlike establishing an LLC or Limited Liability Company, which has at least 51% of shares registered at GCC/UAE national sponsor. Sole proprietorship business in UAE or a qualified foreign investor who practice professional service is granted complete ownership in the company.
Businesses that are owned by foreign national appoint a local service agent to help in obtaining licenses, visas, etc. In most of the case, LSA have no direct involvement in the business. 3A Global Corporate Services Provider is capable of acting as local service agent.
Setting up an Establishment or Sole Proprietorship in UAE
Sole proprietorship business in UAE requires a local service agent, which is either a UAE national or company completely owned by UAE nationals. 3A Global Corporate Services Provider has created 100% UAE-owed LLCs fully managed and controlled through power of attorneys or similar legal agreements. Such companies act as LSA.
The Documents Required for Registration & Approval
- Shareholder passport copy
- UAE resident visa copy, if necessary
- NOC certificate from current resident visa sponsor
- Proof of educational qualification, professional experience
- General manager passport copy
Sole Proprietorship in Dubai
Usually, sole proprietorship in Dubai can be set up by both foreign and local citizens in the Emirate. Establishing a sole proprietorship in Dubai requires a UAE national or national of the GCC. Foreign entrepreneurs who wish to open sole establishments in Dubai will require a local sponsor with a residence permit. In such case, sponsor can be Dubai Company or national.
At 3A Global Corporate Services Provider, we have a track record of having helped entrepreneurs establish their businesses on the mainland as well as in free zones. Our friendly company formation experts do whatever it takes, guiding you patiently through the paperwork so that your application for a Business License is approved in record time.
We are backed by a team of knowledgeable legal experts, who ensure that everything is above board. This way, you don’t have to worry about anything. You can focus on doing what you do best – running your business.
We also have professional accountants and audit experts on board who can assist you with all your financial accounting needs. An Annual Audit is mandatory for all companies set up on the mainland, and our solutions have been helpful to many.
ADVANTAGES
- The foreign professionals retain complete ownership in the business
- Companies can legally practice professional services anywhere in UAE, including the free zones.
- Choose your location where the company can rent or buy office premises
- The UAE government has waived the paid up capital requirements.
LICENSING CATEGORIES
General Trading License In Dubai, UAE
It is important to secure the right type of business license, depending on the commercial activity you have in mind. If you need help getting a Trade License in Dubai, we can be of assistance.
Some of the different types of Trade License in Dubai are as follows
Tourism License
A Tourism License is required for any business establishment in the hospitality industry, or related to it. Examples of businesses that require a Tourism License are hotels, resorts, restaurants, tour operators, travel companies, car rental agencies, cruise boat services, and the like.
A Tourism License is issued by the Department of Tourism and Commerce Marketing (DTCM) in Dubai, and we can help you ensure that all the necessary paperwork is in order and the requisite approvals obtained from the corresponding Government agencies.
There are four kinds of Tourism Licenses
Tourism License This type of license allows you to conduct organized tours in Dubai. An Inbound Tourism License holder is also permitted to organize trips for business travellers, that is, those on a business visa, apart from those on tourist visas. Insurance is mandatory to protect both the License holder as well as the consumer in case of any eventuality.
Outbound Tourism License This type of License allows you to conduct organized trips beyond the geographical limits of the emirate of Dubai. With an Outbound Tourism License, you could take tourists / business travellers on trips to the pristine beaches of Fujairah, or enable them to experience Khor Fakkan, the hidden paradise of the United Arab Emirates. An Outbound Tourism License also allows you to do everything an Inbound Tourism License holder can.
Travel Agency License This type of License allows you to do everything an Outbound Tourism License holder can, plus offer airline or international cruise tickets and/or visa support. Insurance is still mandatory. A No Objection Certificate is required from the Department of Civil Aviation before one can apply for a Travel Agency License. The Local Sponsor can request the NOC by submitting an application in Arabic.
Tour Guide License This type of License is mandatory if you want to be able to accompany tourists and/or business travellers as a tour guide. It requires you to be proficient with the UAE’s tourist destinations, as well as be intricately familiar with the history and the culture of the United Arab Emirates. You have to take an exam to be granted a Tour Guide License, which is valid for only one year. You have to subsequently renew your License every year by passing a refresher course for tourist guides in the UAE.
Craftsmanship License
A Craftsmanship License is, as the name suggests, issued to craftsmen. A craftsman is defined by the Abu Dhabi Judicial Department as someone who practices a craft independently, and for profit. He/She must be dependent on his/her physical efforts and/or the use of specialized tools or equipment.
Examples of craftsmen include artisans, sculptors, designers, wood carving experts, carpenters, and blacksmiths.
COMPANY TYPES
Where Should I Set Up My Business on the mainland-sole-proprietorship?
The United Arab Emirates is comprised of seven emirates, and each emirate is regulated by its own regulatory framework. The Abu Dhabi Department of Economic Development is responsible for overseeing company formation in Abu Dhabi, while in Dubai, the same is looked after by the Dubai Department of Economic Development. We can advise you on the best locations for business setup in Dubai mainland-sole-proprietorship, as well as the rest of the United Arab Emirates.
The fees payable when setting up a company vary, and sometimes, it might be more cost-effective to set up your business in Sharjah, which is only 40 km away from Dubai. On a good day, the distance between these two cities can be covered in just 20 minutes. During rush hour, it could take as much as two hours at the most. This is still an attractive reason to set up your business in Sharjah.
Keep in mind that you can operate throughout the length and breadth of the United Arab Emirates irrespective of your location – businesses are not restricted by the geographical location of their office.
Different Company Types?
- Branch Office
- Civil Company
- Limited Liability Company
- Representative Office
- Sole Proprietorship
