What is the sole establishment in the UAE?
Sole Establishment, otherwise called sole proprietorship is a legal entity formed in the UAE under the name of an individual known as a sole proprietor. The sole proprietor will have complete control over the organization’s tasks, benefits, and liabilities.
Sole Establishment can do either professional or commercial activities in the UAE and should take a license for the same from the Department of Economic Development.
According to UAE government law, a sole Establishment can be formed only by a UAE national or a national of Gulf Cooperation Council (GCC). If any expat needs to form a Sole Establishment, it is mandatory to have a local sponsor, who can be a UAE national or a company.
All you need to know about forming a Sole Establishment
Sole Proprietorship can be a good option for business-minded people who wish to go alone in the UAE, as startup costs are generally low and you can establish your business with just one shareholder. Below is everything you need to know to make the decision for the Sole Establishment.
- Affordable and Easier set up: Setting up sole establishment is affordable and much easier than establishing any other business in the UAE. The license price starts from only AED 8000 onwards. You just need to select your license type and business activities and apply for the license in the Department of Economic Development (DED). The whole process is extremely fast. They will verify your documents and once you make the payment, you could be registered with the DED within minutes’ time.
- Partnership with a local Sponsor: To set up any business in the mainland in UAE, it is mandatory to have a local Sponsor who will own 51% of equity shares and balance 49% shares will be owned by you. Business Consultants in Dubai can arrange you with a reliable local sponsor who is approachable and hassle-free.
- Easy to open a corporate bank account: As soon as you receive your business license, you can set-up your corporate bank account. The process to open an account is simple and quick, you can visit any bank or you can consult a company formation specialist and they will suggest you best bank according to your needs.
- Dependent visa: Once you receive your visa as an owner of a sole establishment, you can get your dependent’s visa very smoothly for your wife, child, maid or driver.
If you are planning for business setup in Dubai then staring up with Sole Establishment is a good option as you will be the only person who is having control over your business.
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