Sole Establishment (sole proprietorship)UAE mainland
What it takes to form, own and run a sole trader in UAE mainland, and how its profit is taxed. Each figure links to the page it was read from.
This company type
At a glance
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the sole proprietorship and the natural person are one and the same because of their direct relationship and Control over the Business and their unlimited liability for the debts and other obligations of the Business.
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the sole proprietorship and the natural person are one and the same because of their direct relationship and Control over the Business and their unlimited liability for the debts and other obligations of the Business.
The registry’s and the law’s own pages do not mention it.
The registry’s and the law’s own pages do not mention it.
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the sole proprietorship and the natural person are one and the same because of their direct relationship and Control over the Business and their unlimited liability for the debts and other obligations of the Business.
Form it
Who registers it
- Registry
- Formed without visiting
- Not stated
The registry’s and the law’s own pages do not mention it.
- Formed online
- Not stated
The registry’s and the law’s own pages do not mention it.
What it takes to form
Not in our records A notary, A resident director, Paying up the capital: none of these is in our records for the Sole Establishment (sole proprietorship).
Own it
Who may own and run it
- Directors
- Does not apply
- Shareholders
- Does not apply
- Members
- At least 1 · at most 1 · one person may form it alone
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the sole proprietorship and the natural person are one and the same because of their direct relationship and Control over the Business and their unlimited liability for the debts and other obligations of the Business.
- A local company secretary
- Does not apply
- A local registered agent
- Required
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A local service agent agreement (LSA) is required if it is a sole proprietorship.
Each year, at the registry
Not in our records Annual registry fee, Accounts on the public record, Audit for a small company, Audit: none of these is in our records for the Sole Establishment (sole proprietorship).
Important dates
When each obligation falls due, as the authority states it.
Not in our records No dates for the Sole Establishment (sole proprietorship) are in our records.
What is public
Not in our records What the register shows the public is not in our records for the Sole Establishment (sole proprietorship).
Tax
Tax on profit
How this company type is taxed, which can differ from its place’s headline rate.
Through owners · 0–9%+1 regime
Taxed in the owner's hands as a natural person, and only where Turnover from business exceeds AED 1 million in a calendar year; then 0% up to AED 375,000 and 9% above
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the sole proprietorship and the natural person are one and the same because of their direct relationship and Control over the Business and their unlimited liability for the debts and other obligations of the Business.
Special regimes that may apply
- Qualifying Free Zone Person free zone · 0%
A qualifying free zone person Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, art. 18
Whether a company qualifies depends on its activity and conditions set in each statute.
- CFC rules in United Arab Emirates
- Not in our records
Close it
Closing it
The other end, which most guides leave out.
Not in our records Route, Statutory fee: none of these is in our records for the Sole Establishment (sole proprietorship).
Every business in UAE mainland
VAT
- Standard rate
- 5%
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VAT 5% (AED)
- Other rates
- Not stated
- Registration threshold
- AED 375,000 · about €89,335
total value of taxable supplies and imports; previous 12 months, or expected within the next 30 days
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Businesses resident in the UAE: Registration for VAT is mandatory if: - The total value of taxable supplies and imports exceeds AED 375,000 over the past 12 months, or is expected to exceed that threshold within the next 30 days.
- Voluntary registration
- Yes
A resident business below the mandatory threshold may register voluntarily once its taxable supplies, imports or taxable expenses exceed AED 187,500 in the past 12 months or are expected to within 30 days.
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Businesses resident in the UAE that make taxable supplies may register voluntarily for VAT if: - The total value of taxable supplies, imports, or taxable expenses in the past 12 months, or expected in the next 30 days, exceeds AED 187,500 (the voluntary registration threshold).
- A foreign company
- Registers from its first taxable supply; no local representative required
A non-resident business must register for VAT if it makes taxable supplies in the UAE, even where the value of those supplies does not exceed the AED 375,000 threshold, unless another party in the UAE is responsible for settling the VAT on those supplies. Registration is made directly through an EmaraTax account; no representative is required.
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Non-resident businesses: VAT registration is mandatory if: - The business makes taxable supplies in the UAE, even if the value of supplies does not exceed the threshold, unless there is another party in the UAE responsible for settling the VAT on those supplies.
- Returns filed
- Depends on the business
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Once you have registered for VAT in the UAE, you are required to file your VAT return and make related VAT payments within 28 days from the end of your tax period.
- Tax authority
- Registration page read 2026-10-22
Portals and registers
- Business registerMinistry of Finance – Agreements Avoiding Double Taxation
- Tax authorityFederal Tax Authority (FTA)
- Tax treatiesCustoms and Port Security (ICP)
Payment and banking services
2 services name United Arab Emirates on their own list: Paysera, Stripe. Each provider, and what a listing means.
Reference
Its name and code
- Kind
- Sole traderDerived our grouping, the same words in every country
- Name in law
- Sole Establishment (sole proprietorship)
- ISO 20275 code
- MV4SSecondary GLEIF, Entity Legal Forms code list