UAE has now become a commercial hub with its arms wide open for anyone willing to start their own business. Owing to the same, the nation has many options for entrepreneurs and investors to choose from. Among them all, Sole Proprietorship has become a popular choice among entrepreneurs as it allows them to establish complete ownership of their company.
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How To Obtain Sole Proprietorship?
For anyone starting small, sole proprietorship is known to be the best choice as it is easier to set up than one can think. As a matter of fact, setting up a sole proprietorship in a Freezone is way easier when compared to that in the mainland.
Steps to set up sole proprietorship
- Choose your license type
- Choose you business activity and
- Apply to the Department Of Economic Development(DED)
You can set up your sole proprietorship by just following these 3 easy steps. The recent initiatives by the government has made the entire process so fast and easy that one could get registered by the DED within 90 mins if the provided documents are fully correct.
Benefits Of Obtaining A Sole Proprietorship
1) Affordable Price
One of the major reasons that makes sole proprietorship a popular choice among investors and entrepreneurs is it’s cost efficiency. When it comes to setting up a sole proprietorship, there is no requirement of large premises which makes the overall setup cost low. And you can obtain the license for a price as low as AED 17,000.
2) No requirement of local sponsors
The sole proprietorship does not require a local sponsor like other business setups. You only need a Local Sponsor Agent(LSA) who will have no decision making power in your business. The activities of the LSA are limited to administrative tasks such as visa permits. The LSA must be either a local or a corporate entity entirely owned by a local.
3) Easy to open a Bank Account
As the process of obtaining a license is easy for sole proprietorship this also makes opening a bank account easier for the entrepreneur. You can approach any bank for enquiry by yourself.In the other hand , you can also get the help of business formation specialists who can help you find the perfect bank that suits all your needs.
4) Providing a sponsor dependent Visa
Owning a sole proprietorship of any business makes you eligible to provide sponsor dependent visas by just following a few easy steps. You can provide a sponsor visa to your wife/husband, child, maid or driver by completing the following process: Permit for entry, Adjustment of the status, A test for medical fitness and Final registration for the UAE ID is all it takes.