Dubai's booming business scene beckons skilled professionals seeking to establish themselves. If you possess specialized expertise and dream of operating independently, a Sole Establishment with a Professional Trade License might be your ideal path. This guide unpacks the specifics of this setup and empowers you to navigate the process with ease.
Understanding Sole Establishments:
Who Can Qualify? Sole Proprietorships are restricted to UAE nationals. However, foreign professionals can establish a Sole Establishment provided they:
Offer professional services (e.g., consultancy, IT services).
Partner with a UAE national who doesn't necessarily need to be actively involved (shareholding percentage can be negotiated).
Benefits of a Sole Establishment:
Simple and Cost-Effective: Compared to other structures, Sole Establishments are quicker and less expensive to set up.
Full Ownership and Control: The owner enjoys complete control over the business and its profits.
Steps to Obtaining a Professional Trade License:
Define Your Activity: Identify the specific professional service(s) you'll provide. Be as precise as possible, as this determines the license type and any additional approvals required.
Secure Initial Approval: Visit the Department of Economy and Tourism (DET) website and submit an online application outlining your chosen activity, desired trade name, and "Sole Establishment" as your business structure.
Partner with a UAE National: Find a UAE national willing to be your partner in the Sole Establishment. Negotiate their shareholding percentage.
Secure a Local Service Agent (LSA) (if required): While not always mandatory, an LSA can assist with legalities and may be necessary depending on your chosen activity.
Find a Physical Office (or Virtual Office if applicable): Secure a tenancy agreement for a physical office space in Dubai. If your profession allows, explore virtual office options to potentially reduce setup costs. Obtain an Ejari certificate from the Dubai Land Department confirming your lease agreement.
Obtain Additional Approvals (if required): Certain activities might require additional permits or NOCs (No Objection Certificates) from specific government entities. Research any specific approvals needed for your profession.
Prepare a Memorandum of Association (MoA): While not mandatory for Sole Establishments, having an MoA outlining the partnership agreement with your UAE partner is recommended for clarity and future reference.
Submit Your Application Package: Once all documents are prepared, submit your complete application to the DET along with the required fees. This includes:
Completed application form
Ejari certificate
MoA (if applicable)
LSA agreement (if applicable)
Copies of passports for yourself and your UAE partner
Any additional permits or NOCs
License Issuance: You'll receive your official professional trade license upon successful processing and approval.
Additional Considerations:
Visa Sponsorship: Once licensed, you can sponsor work visas for employees to build your team (if needed).
Taxation: While corporate income tax is minimal for most onshore companies, other fees like license renewal fees may apply.
Business Setup Consultant: Consider partnering with a consultant to streamline the process, ensure compliance, and save valuable time and resources.
Embrace the Future as a Dubai Professional!
By following these steps and leveraging the resources available, you can successfully establish your Sole Establishment with a Professional Trade License in Dubai. This gateway unlocks a world of opportunity, allowing you to contribute your expertise and build a thriving professional practice in this dynamic market.
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