Overview
A sole establishment is a business owned by one natural person. It is simple to set up but the owner carries unlimited personal liability. It is used for small trading, service and craft businesses, and is not the same as a limited-liability company.
Sole Establishment cost (2026)
| Item | Cost |
|---|---|
| Dubai licence (government) | ≈ AED 11,500–13,500 plus approvals |
| Other emirates | Quote required |
| Office and visas | Extra — see emirate pages |
Dubai figures are government costs published as at July 2026. Where a row says “quote required” there is no reliable public price, so we do not publish a number.
Benefits
- Simple structure with one owner
- Lower formation formalities than an LLC
- Suited to small trades and services
- Direct control by the owner
Requirements and documents
- Owner’s passport and Emirates ID
- Approved trade name
- Premises lease
- Approvals for regulated activities
Who is it best for?
- Small traders
- Craftsmen and small service providers
- Solo owners who accept unlimited liability
What to weigh up
- Your licence lists the exact activities you may perform — adding activities later costs extra
- Government fees change — confirm the live figure for your activity before paying
- Regulated activities need approval from other authorities
Step-by-step: how to set up
- Choose the emirate, activity and legal formDecide the licence type (commercial, professional, industrial) and legal form (LLC, sole establishment, civil company or branch).
- Reserve the trade name and get initial approvalSubmit the name and activity to the economic department.
- Lease premisesSign a tenancy contract for a physical office or shop; office size affects visa quota. Dubai requires Ejari registration.
- Draft and sign the Memorandum of AssociationThe MoA sets shareholders, capital and management; notarisation applies where required.
- Obtain external approvalsRegulated activities need approval from other authorities (health, education, food, finance and others).
- Pay fees and receive the trade licenceGovernment fees are paid to the licensing department.
- Establishment card, visas, bank account and taxArrange the immigration card, residence visas and Emirates ID; open the bank account; register for corporate tax and VAT where required.
Mainland or free zone?
Mainland suits businesses selling to UAE customers or bidding for government work; a free zone can be simpler and cheaper for international or online businesses. Use the decision framework and browse all free zones.
FAQs: Sole Establishment
Is a sole establishment the same as an LLC?
No. A sole establishment has a single owner with unlimited liability; an LLC is a separate legal entity with limited liability.
Can a foreigner own a sole establishment?
Ownership rules depend on the activity and emirate. Confirm whether your activity allows foreign ownership without a local partner.
When is an LLC better?
When you want limited liability, need to bring in partners or want a more formal structure for banks and clients.
What documents are needed for a mainland licence?
Typically passport copies for shareholders and managers, an approved trade name, a Memorandum of Association, a premises lease and approvals for regulated activities. Foreign corporate shareholders provide attested incorporation documents. Confirm the current checklist with the licensing department.
Do mainland companies pay corporate tax and VAT?
UAE corporate tax is 0% on taxable income up to AED 375,000 and 9% above it; VAT is 5% with mandatory registration above AED 375,000 of taxable supplies. Small Business Relief may apply to eligible businesses for tax periods ending on or before 31 December 2026. Check current Federal Tax Authority guidance.
How is a mainland licence renewed?
Mainland trade licences are issued for a period (commonly one year) and renewed with the licensing department together with the office lease, establishment card and any external approvals. Renewal fees are broadly comparable to the first-year licence fee; late renewal attracts fines.
How many visas can a mainland company have?
The visa quota depends mainly on the size of your registered office, plus activity and shareholder count. The office lease is the key sizing decision.
Can a mainland company also operate from a free zone?
Yes — many groups keep a mainland entity for UAE sales and a free zone entity for international work or holding. Each is a separate licence with its own costs and compliance.
Get a written quote for Sole Establishment
Tell us your activity and how many visas you need. We reply on WhatsApp or email with government fees shown separately from any service fee.
- Free, no obligation
- Honest advice — including when a different zone or mainland fits better
- No guarantee of visa or bank-account approval; both are subject to the relevant authority or bank
Information on this page is general and was compiled from public sources; fees and rules are set by the relevant authorities and change. Figures were last reviewed in July 2026 and exclude professional-service fees, office rent beyond any bundled desk, external approvals and bank requirements. This is not legal, tax or immigration advice. Always confirm the current position with the relevant authority before paying. See our Disclaimer.