What is a sole trader?
The UAE offers one of the most up-to-date business incorporation laws, allowing both large and small investors to start up shops in accordance with their financial means.
An individual can own a sole proprietorship, and the trade license is issued in that individual’s name. Abu Dhabi residents and Gulf Cooperation Council (GCC) members are allowed to set up a single proprietorship firm in the United Arab Emirates (UAE).
How to start your business as a sole trader in Abu Dhabi?
- The Abu Dhabi Department of Economic Development must be notified of the single proprietorship’s registration (ADDED).
- A business license application must specify the nature of the proposed business activity.
- Register your business under the chosen trading name. The business name must be distinct from any already existing company in Abu Dhabi.
- Payment of fees and submission of the relevant paperwork to the DED.
- Acquire a Chamber of Commerce membership and a license.
- Then get an office.
Responsibilities
- In Abu Dhabi, sole proprietorships are aimed at investors who are willing to take full responsibility for both their losses and their earnings.
- In Abu Dhabi’s free trade zones, the activities of Sole traders can also be formed.
- As a sole proprietor, you are legally obligated to register your firm and pay your taxes.
- It is critical that sole proprietors register for VAT in order to avoid the steep fines associated with unreported income and registrations that are more than a year old.
- A sole proprietor also has the duty to follow the established guidelines for conducting business.
Where to register?
- You can register here.
Documents required?
- A certified copy of the shareholder’s passport
- If applicable, a copy of the UAE residency visa.
- Visa sponsor’s No Objection Certificate (NOC), if relevant
- If requested, proof of education, training, or experience.
- Proof of registered address.
What is the cost?
- It cost approx 5,500 AED.
One thought on “How to start your business as a sole trader in Abu Dhabi?”
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