Sole Proprietorship

Sole Proprietorship

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​A Sole Proprietorship is a business owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for ​business debts and any other financial obligations.


  • An industrial or commercial type Sole Proprietorship can be owned only by UAE Nationals or GCC Nationals.
  • The owner of a sole proprietorship engaged in consultancy activities must have obtained a scientific qualification for the same activity selected​
  • Certain activities that go with this legal form can be practiced only by UAE nationals.​


A professional-type sole proprietorship can be owned by an individual of any nationality. If the owner is a National of a country other than the UAE or GCC, they require a ​Local ​Service Agent (LSA)​. A corporate body cannot own a sole proprietorship.


  • Sole Proprietorship can appoint one manager only as per DED business regulations.

Trade Name:

  • The trade name should be related to the commercial activity of the firm.


  • A sole proprietorship can have more than one branch. Each may undertake one or all of the activities included in the main business license.
  • A sole proprietorship cannot have a branch outside Dubai.​​

Assignment of License:

  • A sole proprietorship and/or its branches can be sold and waived to any party or company. The owner/s can also change its legal form according to DED procedures.
  • An industrial or commercial type sole proprietorship can be sold to a UAE national only. In case a local owner/partner changed the activity to professional, a sole proprietorship can be sold to a foreigner but a Local Service Agent must be assigned.