Differences between Sole establishment and LLC (Limited Liability Company)

Differences between Sole establishment and LLC - Makebiz

The United Arab Emirates is one of the most advanced countries in the world, offering foreign entrepreneurs and investors unique opportunities to create a stable and profitable business.

Sole establishment is a popular form of company organization that implies sole proprietorship. That is, the license to operate is issued to one specific person, who is personally liable for all property. In this case, more than 1000 different professional licenses will be available to provide services. However, opening a sole establishment does not give the right to engage in trade and import-export operations.


  • 100% ownership for foreign nationals;
  • affordable cost of registration;
  • possibility of combining several types of activities;
  • no restrictions on the location of offices.


  • sole liability for obligations;
  • no possibility to engage in trade in various goods;
  • complicated process of attracting investment in this form of company.

The basic steps in opening a Sole establishment are:

1. Obtaining a license for the chosen type of activity.

2. Obtaining approval of the selected name from the Department.

3. Selecting an office space and signing a lease agreement to open an account. Separately we would like to note that for some types of licenses available to Sole companies there is no need to rent an office.

4. Applying for a resident visa.

5. Opening a corporate account.

LLC (Limited Liability Company) assumes the presence of from 1 to 50 founders, and accordingly, the responsibility for the company is divided in the ratio of investment shares of each participant. It is a full-fledged legal entity. Another significant difference: the owners of the LLC type company can buy real estate on behalf of the organization. Any industrial or commercial business can be registered.

For a successful and quick passage of all stages of registration, we advise you to contact professionals. Make an appointment for a consultation with a Makebiz specialist and find out which type of company is suitable for your business.

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