Sole proprietorships in the UAE ᐅ Make the right choice!

ᐅ What is a sole proprietorship in the UAE?
A sole proprietorship in the UAE is a business entity owned and operated by a single individual. This structure allows you to manage your business independently, with complete control over operations and profits. It is essential to register your sole establishment under UAE law to ensure compliance with local regulations.

ᐅ What are the costs associated with establishing a sole proprietorship in Dubai?
The costs of establishing a sole proprietorship in Dubai can vary significantly based on location and required licenses. Generally, you can expect to incur government fees, licensing costs, and other expenses related to your business setup, which can range from AED 10,000 to AED 25,000 or more. We can help you manage these costs effectively and provide you with the best options tailored to your business needs.

ᐅ How do I register a sole proprietorship in Abu Dhabi?
To register a sole proprietorship in Abu Dhabi, you must choose a trade name, obtain a commercial license, and submit the necessary documents to the Department of Economic Development (DED). Our team at Cassius Law specializes in guiding clients through this process, ensuring all requirements are met efficiently.

ᐅ Can a UAE national own a sole proprietorship in Dubai?
Yes, UAE nationals can fully own a sole proprietorship in Dubai. However, expatriates may need a local sponsor or partner who can hold 51% of the business. At Cassius Law, we provide tailored solutions to help expatriates navigate the local business landscape while ensuring compliance with regulations.

ᐅ What are the benefits of a sole proprietorship in the UAE?
The benefits of establishing a sole proprietorship in the UAE include full control over business decisions, simplicity in operation, and a straightforward tax structure. It is an excellent option for entrepreneurs looking to start small and grow their businesses organically. Our team can help you determine if this is the right structure for your business plans.

ᐅ What are the differences between a sole proprietorship and an LLC in the UAE?
A sole proprietorship is owned by one individual who bears all liabilities, while an LLC (Limited Liability Company) requires at least two shareholders and limits personal liability. Choosing between the two depends on your business goals and risk tolerance. We can advise you on which structure is more suitable for your venture.

ᐅ What licenses are required to operate a sole proprietorship in the UAE?
To operate a sole proprietorship in the UAE, you must obtain a commercial license from the relevant regulatory authority, which varies by emirate. Additionally, specific sector-related permits may be necessary. Our experienced legal team at Cassius Law can ensure you acquire all the correct licenses needed to operate smoothly.

ᐅ Are there any restrictions on the type of business I can run as a sole proprietor in Dubai?
Yes, specific business activities in Dubai might have restrictions for sole proprietorships, particularly those requiring a local partner. These restrictions typically include sectors like real estate and certain professional services. We can guide you through the available options that align with your business interests.

ᐅ What are the tax obligations for sole proprietorships in the UAE?
Sole proprietorships in the UAE enjoy advantageously low tax rates, as there is currently no income tax on personal earnings. Nonetheless, VAT may apply to goods and services provided by your business. Our team ensures you are not only compliant with tax regulations but also well-informed about your obligations.

ᐅ How can I dissolve a sole proprietorship in the UAE?
To dissolve a sole proprietorship in the UAE, you must follow a series of legal steps, including settling any debts, obtaining approvals from the relevant authorities, and canceling your trade license. We at Cassius Law can assist you with each step of the dissolution process to ensure a smooth experience.

ᐅ What documentation is needed to set up a sole proprietorship in Abu Dhabi?
Setting up a sole proprietorship in Abu Dhabi requires several documents, including a copy of your passport, a residency visa, a no-objection certificate from your sponsor (if applicable), and any relevant professional qualifications. Our professional team can help you compile and prepare all necessary documentation to facilitate the registration process.

ᐅ Can I hire employees as a sole proprietor in the UAE?
Yes, as a sole proprietor in the UAE, you can hire employees. However, you will need to comply with the UAE labor laws, including obtaining work permits and residency visas for your employees. We can assist you in navigating the legal aspects of hiring within the UAE.

ᐅ What are the advantages of using Cassius Law for my sole proprietorship?
Choosing Cassius Law means you benefit from our extensive knowledge of UAE business law, our commitment to excellent service, and our expertise in navigating the complexities of business regulations. Whether you're setting up a sole proprietorship or seeking ongoing legal support, we are here to assist you every step of the way.

For tailored guidance and further information on sole proprietorships in the UAE, please contact us at Cassius Law. Our dedicated team is here to support you in realizing your business aspirations.