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Setting Up a Sole Trader in Dubai

Setting Up a Sole Trader in Dubai

Updated on Thursday 29th September 2016

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Setting-Up-a-Sole-Trader-in-Dubai.jpgThe sole trader is a common business form suited mostly for small scale businesses that are run by a single individual. This type of business has many advantages, but is also different from other types of companies in Dubai in terms of owner liability. The sole proprietor is fully liable for the small business, unlike in larger companies that are legally separate from their founder.
The team from our law firm in Dubai can help you open a sole trader, if you want to start your own business.

The sole trader in Dubai: suited for small businesses

Dubai nationals or those from countries that are members of the Gulf Cooperation Council (GCC) can open a sole trader in Dubai by obtaining a licence from the Department of Economic Development. Sole proprietorships that engage in industrial or commercial activities can be owned only by UAE nationals or GCC nationals. Sole proprietorships that are of a professional type can be owned by individuals of any nationality.
Foreign investors in Dubai can appoint a commercial agent to act on their behalf in business activities performed through a sole trader. This Local Service Agent can help you, if you want to act as a medical professional or engineer in Dubai.  For more information about the types of companies that can be foreign-owned and the Dubai free zones, you can contact our Dubai lawyers.
We invite you to watch this video about the sole trader in Dubai

Open a Dubai sole trader

Foreign investors must sign a local service agent agreement in order to be able to run their sole proprietorship in Dubai. The agreement must be authenticated by a public notary or a court in Dubai. The only exception to the rule is a sole proprietorship that offers legal services or legal consultancy - it doesn't require an agreement with a local service agent.
The sole proprietorship allows the owner to engage in a wide range of business activities, from services like tailoring, to contractors or builders or home tutors and even restaurant owners. The accessibility and easy set-up process make this business form a widely preferred option for investors in Dubai. 
Our law firm in Dubai can help you with company incorporation services. Please contact our Dubai lawyers if you have questions.


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