A Sole Establishment, also known as a Sole Proprietorship, is a business type in the UAE where a single individual owns and operates the company, primarily suited for small-scale ventures or professional services. Unlike free zone entities, a Sole Establishment is typically registered on the UAE mainland and requires a local sponsor or service agent for certain activities, though the owner retains full control and profits. It does not offer the same tax exemptions as free zone structures, with the UAE’s 9% corporate tax applying to profits above AED 375,000 ($102,000) since 2023, but it allows direct access to the local market without additional licensing. This structure suits entrepreneurs in fields like retail, contracting, or consultancy, though the owner bears unlimited personal liability for debts. Its simplicity makes it a practical choice for solo business owners targeting the UAE’s domestic economy.
