Sole Establishment
One owner, one name, and what the law requires of a foreign owner.
A sole establishment in Dubai
A sole establishment — the Department of Economy and Tourism calls it a sole proprietorship — is a business owned by one person. Dubai’s own law defines it in terms worth reading before choosing it: an Establishment is “A Business owned by a natural person for the purpose of conducting an Economic Activity in the Emirate”, “whose legal personality is not distinct from its owner”, the owner “being the person responsible for all its financial obligations towards third parties” (Law No. (13) of 2011, Article 2).
Article 14 lists it first among the four legal forms an Economic Activity may be conducted through. It is the simplest form on the mainland and the one with the least between the owner and the business — which is both why people choose it and the thing to understand before they do.
The second thing this page exists to set out properly is what the law requires of an owner who is not a UAE national. That is Articles 15 and 16 of the same law, and it is quoted in full below rather than summarised.
What this desk covers
- Checking the activity against the form — the question that decides whether a sole establishment is available to you at all
- Trade name options and reservation
- Initial approval
- The local service agent contract where the law requires one, and its notarisation
- External approvals where the activity is regulated by a second authority
- Premises and Ejari, or a flexi desk where the activity allows it
- The licence application and the follow-up until it issues
- Establishment card, labour file and the visa filings that follow
- Bank account support, and Corporate Tax and VAT registration
Get this quoted
Itemised in writing, government charges shown separately, before anything is filed.
Which one do you need?
Who this page is for
- A single owner who wants the simplest mainland form
- A professional practising on their own — consultant, trainer, designer, therapist, technician
- A non-UAE national who needs to know, from the law rather than from hearsay, what an agent is and what the agent is and is not liable for
- Someone comparing it with a one-person LLC and weighing the liability difference
- An existing sole establishment owner changing the activity, the name or the agent
If the activity is commercial rather than professional, or the liability needs to stop at the business, the LLC page is the one to read instead.
What we need from you
To open the file and quote:
- Passport copy for the owner
- Emirates ID and residence visa copy if the owner is already resident
- The activity, in your own words
- Two or three trade name options
- A working mobile number and email address
Where the law requires a local service agent, the agreement has to be notarised. Article 16 of Law No. (13) of 2011 requires the relationship to be "governed by a notarised agency agreement" "based on the template prescribed by the DED".
The federal portal's mainland document list includes a "Duly attested service agent contract" for civil establishments and for companies wholly owned by non-GCC nationals (u.ae, updated 27 October 2026). The Department of Economy and Tourism also lists "a No Objection Certificate from the sponsor for non-GCC nationals to practice a business activity" among its initial-approval requirements, noting it does not apply to partners or investors (ded.ae). Which of these applies to your file depends on the activity and your status, and it is the first thing we check.
How a sole establishment file runs
- The activity. Whether it is an Occupational or Artisan Activity in the sense of the law decides what follows, including whether an agent is required.
- The owner's status. UAE national, GCC national, or otherwise — this is where the forms genuinely differ.
- Trade name, reserved at the published "AED 620" (ded.ae).
- Initial approval, published at a stated total of "AED 120" (ded.ae).
- The local service agent contract where one is required, drafted on the Department's template and notarised.
- Premises and the tenancy the licence sits on.
- External approvals, where the activity needs a second authority.
- The licence issues.
- After it: establishment card, labour file, visas, bank, Corporate Tax and VAT.
Turnaround, and the charges Dubai publishes
- Our own turnaround, which is our record and not an authority commitment: about 4–5 working days once documents and approvals are in place. Where an agent contract has to be notarised, the notary appointment is the step that sets the date.
- Fees: quote on request, itemised in writing, government charges separate.
The published Dubai charges, read on 13 November 2026:
| Published charge | Amount | Where it is published |
|---|---|---|
| Issuing or amending the initial approval | "AED 100", plus "Knowledge Dirham fee: AED 10" and "Innovation Dirham Fee: AED 10" — the page states "The total cost of issuing the initial approval is AED 120" | Department of Economy and Tourism, initial approval |
| Reserving a trade name | "AED 620" | Department of Economy and Tourism, trade name reservation |
| Issuing the licence | "License register fees: AED 600", "Knowledge Dirham fee: AED 10", "Innovation Dirham fee: AED 10" | Department of Economy and Tourism, new licence |
| Trade name advertisements | "AED 350" | Department of Economy and Tourism, new licence |
| Service request form | "AED 50" | Department of Economy and Tourism, new licence |
| A foreign trade name | "from AED 1000 to 3000" | Department of Economy and Tourism, new licence |
| General trading as the activity | "General Trade Activity Fees: AED 15,000" | Department of Economy and Tourism, new licence |
The agent contract has its own published charge. For an establishment or service agent contract the Department lists attestation "AED 300 for each party's signature on the document" where the document value is under AED 100,000, "%0.5 of the document value with a maximum of AED 15.000" above it, and "AED 100 for the e-signature of each concerned party" (ded.ae).
What Dubai law calls a sole establishment
The law's own term is Establishment, and the definition in Article 2 of Law No. (13) of 2011 does three things at once. "A Business owned by a natural person for the purpose of conducting an Economic Activity in the Emirate." One owner, and a natural person rather than a company. "whose legal personality is not distinct from its owner". There is no second legal person. The business is the owner, operating under a name. The owner is "the person responsible for all its financial obligations towards third parties". That follows from the sentence before it, and it is the sentence that decides whether this form suits you. Article 14 then lists "sole proprietorship" first among the four legal forms an Economic Activity may be conducted through, and the Department of Economy and Tourism lists sole proprietorships among the company types it issues an initial approval for (ded.ae).
The local service agent, from the law rather than from hearsay
This is the part of the form that is most often described wrongly, so here it is as Dubai publishes it. Who needs one. Article 15(b): "Non-UAE nationals will be authorised to conduct Occupational or Artisan Activities provided that they have an agent". The agent "may be a natural person holding the UAE nationality" or "a legal person whose partners are all holders of the UAE nationality". What the agent is responsible for. Article 16: "A Local Service Agent will be responsible to the Business and to third parties for exercising due diligence" "to enable the Business to conduct its Occupational and Artisan Activities in the Emirate". What the agent is not responsible for. The same article: the agent "will bear no civil or financial liabilities in relation to the work or activity of the Business". How the relationship is made. Also Article 16: it "must be governed by a notarised agency agreement" "based on the template prescribed by the DED". An agency on a notarised agreement, on the Department's own template, with no financial liability sitting on the agent. That is what the law provides. Whether your activity is one that triggers Article 15(b) at all is confirmed with the Department before anything is signed, because the article is about Occupational and Artisan Activities specifically. The federal portal's own mainland document list reflects the same requirement from the paperwork side, naming a "Duly attested service agent contract" for civil establishments and for companies wholly owned by non-GCC nationals (u.ae, updated 27 October 2026).
Sole establishment or one-person LLC
A single owner on the Dubai mainland has both forms available, and the choice between them is really one question.
| Sole establishment | One-person LLC | |
|---|---|---|
| Owners | One natural person | One natural or legal person, under Art. 71(2) of Decree-Law 32/2021 |
| Separate legal personality | No — "not distinct from its owner" | Yes |
| Liability | The owner is "responsible for all its financial obligations towards third parties" | "liable only to the extent of his capital contribution" |
| Articles of association | Not a company, so none | Dubai notes articles are "not applicable for a one-person LLC" |
| Typical fit | A professional practising on their own | An owner who wants the liability to stop at the company |
Everything else — the name, the approval, the premises, the licence — runs the same way. If the answer to "does the liability need to stop at the business" is yes, the form is the company.
What Dubai publishes
Quote on request from us; published charges from the Department, read on 13 November 2026.
| Published charge | Amount | Where it is published |
|---|---|---|
| Issuing or amending the initial approval | "AED 100", plus "Knowledge Dirham fee: AED 10" and "Innovation Dirham Fee: AED 10" — the page states "The total cost of issuing the initial approval is AED 120" | Department of Economy and Tourism, initial approval |
| Reserving a trade name | "AED 620" | Department of Economy and Tourism, trade name reservation |
| Issuing the licence | "License register fees: AED 600", "Knowledge Dirham fee: AED 10", "Innovation Dirham fee: AED 10" | Department of Economy and Tourism, new licence |
| Trade name advertisements | "AED 350" | Department of Economy and Tourism, new licence |
| Service request form | "AED 50" | Department of Economy and Tourism, new licence |
| A foreign trade name | "from AED 1000 to 3000" | Department of Economy and Tourism, new licence |
| General trading as the activity | "General Trade Activity Fees: AED 15,000" | Department of Economy and Tourism, new licence |
And the one that is specific to this form. For an establishment or service agent contract, the Department publishes attestation at "AED 300 for each party's signature on the document" under a document value of AED 100,000, "%0.5 of the document value with a maximum of AED 15.000" above it, "AED 500 to postpone completion of the transaction", and "AED 100 for the e-signature of each concerned party" (ded.ae).
Sole establishment questions, answered from the law
What exactly is a sole establishment?
Dubai's own definition: "A Business owned by a natural person for the purpose of conducting an Economic Activity in the Emirate", "whose legal personality is not distinct from its owner", with the owner "being the person responsible for all its financial obligations towards third parties" (dlp.dubai.gov.ae, Law No. (13) of 2011, Article 2).
Am I personally liable?
Yes, and that is the defining feature of the form rather than a risk somebody forgot to mention. The business has no separate legal personality from you. If that is not acceptable, the one-person limited liability company under Article 71(2) of Federal Decree-Law No. (32) of 2021 is the form that limits it.
Can a foreign national own a sole establishment in Dubai?
For occupational and artisan activities the law sets a condition. Article 15(b) of Law No. (13) of 2011: "Non-UAE nationals will be authorised to conduct Occupational or Artisan Activities provided that they have an agent", who may be "a natural person holding the UAE nationality" or "a legal person whose partners are all holders of the UAE nationality".
What is a local service agent actually responsible for?
Article 16 answers it directly, and it is narrower than most people expect. The agent "will be responsible to the Business and to third parties for exercising due diligence" "to enable the Business to conduct its Occupational and Artisan Activities in the Emirate", "and will bear no civil or financial liabilities in relation to the work or activity of the Business". The relationship "must be governed by a notarised agency agreement" "based on the template prescribed by the DED".
Does the agent own any part of my business?
Article 16 describes an agency relationship on a notarised agreement, and places no ownership and no financial liability with the agent. What any particular contract says is a matter for the contract, which is why it is drafted on the Department's own template and read before it is signed.
What counts as an occupational or artisan activity?
The law defines it as "An activity conducted by one or more natural persons who rely on their physical or intellectual efforts", or who "use certain tools and equipment to perform such activity with a limited capital" (dlp.dubai.gov.ae, Article 2). Whether yours is one is confirmed with the Department rather than assumed.
Can two professionals share a sole establishment?
No — one natural person owns it. Two or more practising together is the civil works company, which Article 15(a) describes as a Business Partnership: UAE and other natural persons "may enter into partnerships" "to personally conduct Occupational or Artisan Activities in the Emirate". See Civil Company.
How many visas will it carry?
Not published. The ministry weighs "the company's legal status, the size of the work facilities, the projects undertaken by the establishment, and business requirements" (u.ae, updated 28 September 2026). See the company visa quota in the UAE.
Can I change it into a company later?
Changing the legal form is a licence modification rather than a new setup. Modification is the page.
What will it cost?
Quote on request, itemised. The published government charges, including the agent contract's attestation, are in the table above with the page each is printed on.
Every rule above names the instrument or the authority that published it and the date it was read: Dubai Law No. (13) of 2011 and Federal Decree-Law No. (32) of 2021 as published on the Dubai and UAE legislation portals, and the Department of Economy and Tourism's own service pages for the charges, all read on 13 November 2026. Laws are amended and service pages are revised without announcement, so confirm anything you are about to rely on with the authority itself. AL HUDHUD Documents Clearing Services is a documents clearing and PRO services company, not a law firm; this is information, not legal advice. Fees: quote on request.
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