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Sole Proprietorship


Sole Proprietorship Company SetupA sole proprietorship is a professional business entity whereby an individual trades for his own account pursuant to a trade license issued in his own name. Foreigners may form sole proprietorship subject to fulfillment of conditions and for certain activities. This kind of license is issued to certain services like medical practitioners, engineers and lawyers. All foreign proprietors must appoint a UAE national as his service agent.

Documents required for Initial Approval

  • Registration and licensing application, as well as proof of reserved trade name.
  • Photocopy of applicant's passport (together with residence permit / visa details for non-GCC nationals).
  • Photocopy of applicant's naturalization identification for UAE nationals only.
  • No-objection letter from the applicant's current sponsor for non-GCC nationals.
  • Photocopy of the director's passport, and no-objection letter from the director's current sponsor.
  • Permission from the court to practice business, for applicants under 21 years.
  • Approval issued by other Government authorities according to the type of activity.

Documents required after getting the Initial Approval

  • Initial Approval receipt
  • All documents submitted before in order to get the Initial Approval.
  • Photocopy of office lease including the plot number.
  • Appointment contract of Local Service Agent duly authenticated by the Notary Public in the Emirate for professional licenses of non-GCC nationals

The following are the steps involved in the formation of asole proprietorship firm.

  • Selection of company name
  • Approval of company name from licensing department of the economic department
  • Attestation of Service Agreement by a Notary of Court
  • Inspection & registration of office space of company
  • Getting approval from the economic department for entry into the commercial register
  • Once approval is granted, the company will be entered in the commercial register. The license will then be issued by the Economic Department.
  • Registration of the firm in Chamber of Commerce and Industry

GBS will be able to help you incorporate your business in UAE. Our dedicated teams will help and support you right from preparation of relevant documents to obtaining license.

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal, tax or other professional advice. We do not accept any responsibility, legal or otherwise, for any errors or omissions.