FAQ

A sole proprietorship in Dubai also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one natural person and in which there is no legal distinction between the owner and the business.

A limited liability company (LLC) is a corporate structure whereby the members of the company cannot be held personally liable for the company’s debts or liabilities. Limited liability companies are essentially hybrid entities that combine the characteristics of a corporation and a partnership or sole proprietorship.

You can set up a commercial, professional or industrial business in one of the following legal forms:

branch company or foreign representative office
individual establishment or sole proprietorship
limited liability company (LLC)
professional/civil business company
public or private shareholding company

An LLC is a hybrid of a partnership and a corporation. Its owners are shielded from personal liability; the liability of the shareholders is limited to their shares in the company’s capital and selling shares publicly is not permitted. Formed by a minimum of two and a maximum of 50 people, an LLC is a popular choice for anyone setting up a company outside of a free zone in Dubai.

Yes. Converting a sole proprietorship or a partnership to an LLC is an easy way for sole proprietors and partners to protect their personal assets without changing the way their business income is taxed.