UAE Sole Establishment or Sole Proprietorship

A Sole Establishment setup is mostly used for conducting professional activities, such as medical, financial, engineering, management, legal and IT consultancies, or similar services. Many of the activities under this legal form require that the owner or manager demonstrate specific professional or educational qualifications to obtain a licence.

In some cases, the owner / manager may be required to undertake examinations in the UAE in support of qualifications. These exams could be an annual requirement depending on the activity. The American University in Dubai hold these examinations.

Some of the activities may also need the manager of the licence to be able demonstrate relevant experience in their field, by supplying references or work experience certificates.

Certificate(s) of good standing from a foreign body responsible for registering the relevant profession may also be required.

While some owners of a Sole Establishment might consider using a personal account for their business, it is highly recommended to open a business bank account to keep your personal and business finances separate.

Sovereign has longstanding relationships with a number of financial institutions worldwide and is able to arrange introductions and account openings on behalf of clients. We are also familiar with their account opening processes and their customer identification and due diligence procedures.

To apply for your trade licence, you will need to submit a copy of your residency visa.

You can apply for your initial work permit approval through the UAE Ministry of Foreign Affairs or the relevant consulate or embassy in your home country. You will need to provide supporting documents, including your passport, a business plan and proof of finances.

Once your application has been approved, you will be issued with a work permit. This will allow you to live and work in the UAE for a period of time. You can then apply for a residency visa, which will allow you to stay in the UAE indefinitely.

The residency visa application process is similar to the work permit process, and you will need to provide supporting documents and proof of finances. As well as being able to apply for your own visa as the owner of a Sole Establishment in the UAE, you can also sponsor your dependents for their visa applications.

There are limitations on the number of branches that a Sole Establishment can set up. Each branch can undertake one or all the activities included in the main business licence.

Sovereign is highly experienced in company formation and business setup in Dubai. We also provide the support services needed to make your business sustainable.

To find out more about our corporate services, please contact one of our Company Formation consultants.

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