A sole establishment is the simplest UAE legal structure — a single individual owns the business directly, without the corporate shareholder structure an LLC requires — and Dubai licenses it through the Department of Economy and Tourism (DET) for a range of professional and commercial activities.
How it differs from an LLC
Unlike an LLC, where liability is limited to the company's share capital, a sole establishment owner bears full personal liability for the business's debts and obligations — there is no separate legal shield between the owner's personal assets and the business. This makes it best suited to lower-risk professional or consultancy activities rather than capital-intensive or high-liability ventures.
Professional vs commercial sole establishments
Dubai distinguishes between a professional sole establishment (consultancy, medical, legal and similar service activities, which can sometimes permit 100% foreign ownership even for activities requiring a local service agent in other structures) and a commercial sole establishment (trading activities), each with somewhat different registration requirements — confirm which category your specific activity falls under.
Costs and timeline
A sole establishment is generally one of the simpler and faster UAE structures to form, without the Memorandum of Association complexity an LLC's multi-shareholder structure requires. Model your specific case with this site's Business Setup Cost Calculator.