Sole Proprietorship or Limited Liability Company? Consult with Business Setup Consultants

Creating a suitable corporate structure for your corporation is one of the most critical aspects of establishing a business in Dubai. However, business setup experts in Dubai must first emphasize the differences between an LLC and a sole proprietorship in order to determine which type of company structure is ideal for your company and engage in the LLC vs. sole proprietorship debate.

LLC Or Limited Liability Company 

A limited liability company, or LLC as it is more commonly abbreviated, has a shareholding structure with multiple partners. This is a very common business model in Dubai due to the low minimum investment required by shareholders. This also allows owners to submit as many visa applications as they want.

The Expense Of Establishing An LLC Setup

An all-inclusive commercial license package costs around AED 25,500 to establish a firm on the Dubai mainland. This includes the trade license, name, and initial approval fees, the Tasheel fee, the service charge, the company stamp, the memorandum of association/notary fee, the immigration card, the investor visa, the Emirates ID, the medical test, the change of status, the visa stamping, the office sustainability contract, the official solution, the employment visa quota, the bank account assistance, the free VAT registration, and the tax consultation.

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Sole Proprietorship Or Sole Owner 

A sole proprietorship is a corporate structure that allows a single proprietor to own 100% of their business. In exchange, the DED grants professional licenses, assisting service-oriented enterprises in establishing themselves in Dubai. Additionally, licensees of this company can obtain a virtual office as well as a visa quota for employees.

The Expense Of Establishing A Sole Proprietorship

A service-oriented firm can be started at a cheap cost. For AED 14,500, you can establish your Dubai onshore corporation. This package includes a trade license, name approval, initial approval, LSA notary fee, company stamp, Tasheel charge, service fee, complete documentation, free business setup consultation, and a dedicated consultant. 

How Businesses Set Up Companies In UAE Reveal The Difference? 

Because both corporate structures allow for 100% ownership, the partnership model and liabilities are the primary distinctions between an LLC and a sole establishment. By incorporating an LLC, the proprietors can pool their resources and share assets. Meanwhile, the sole proprietor of a business has complete flexibility and control over its financial and operational components.

They may be obliged to incur significant sums, however, because they have no shareholders and are completely liable in the event of an unexpected legal or financial catastrophe. After you understand the difference between an LLC and a sole proprietorship, you will be able to choose the finest company structure in Dubai.

When deciding between an LLC and a sole proprietorship, the primary factors to consider are personal liability, ownership, and management, the cost of forming and registering the business, and taxation. Consult with business advisers to have a full understanding of the factors that determine your company’s structure.


There are teams of business formation professionals and counselors who are familiar with the working structure of the UAE. Furthermore, these business setup organizations in UAE include well-connected public relations professionals, seasoned lawyers, accountants, and tax advisers. They help you with all business setup formalities, ensuring a smooth and quick business setup process.

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