How to start your business as a sole trader in Abu Dhabi?

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?

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.

 

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