The UAE government has one of the most flexible legislation systems when it comes to company formation. It allows investors to set up business based on their budgets.

Sole Proprietorship is an establishment owned by a single individual wherein the trade license is issued in his or her name. The owner is responsible for all aspects of the business, including finances, liabilities, and decision-making. Establishments that are owned by foreign nationals should mandatorily appoint a National Service Agent (NSA) for obtaining licenses, visas etc. In this type of business, the owner can retain 100% of the company ownership and he or she can be the sole shareholder.

In sole proprietorship, there are no restrictions on the location where the company can rent or buy offices. However, it is worth noting that the owner has unlimited liability, which means they are personally responsible for any debts or legal issues that may arise in the course of running the business.

Foreign entrepreneurs are now able to establish businesses in Dubai without the requirement of a local sponsor, providing greater flexibility for those wishing to start a business in the region. However, if entrepreneurs still wish to collaborate with a local sponsor, they are free to do so. The setup process is also relatively straightforward and can be completed quickly, making it an attractive option for entrepreneurs looking to start a small business in Dubai.