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Sole Establishment in the UAE

A sole establishment (sole proprietorship) is owned by one person, who is personally liable for all its obligations. It suits a single professional or a small trade; it is not a separate company.

Updated October 2026 · Figures checked 21 October 2026

Owner
11
Owner
Business turnover above which the owner pays corporate tax
AED 1m3
Business turnover above which the owner pays corporate tax

Sole Establishment in the UAE

What to know

  • The owner’s personal assets answer for the business’s debts.
  • Establishments wholly owned by non-GCC nationals need a local service agent from the UAE, under an agreement attested by a notary public or the court.
  • For corporate tax, the owner is taxed as an individual on business income only once total business turnover exceeds AED 1 million in a calendar year.

Source: UAE Government Portal: Steps to start a business on the mainland; Federal Tax Authority: Basis of taxation for natural persons2,3

Sources

  1. Dubai.ae: Business set-up options
  2. UAE Government Portal: Steps to start a business on the mainland
  3. Federal Tax Authority: Basis of taxation for natural persons

Figures checked 21 October 2026. Prepared by Invest-Emirates.ae for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.

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