Glossary · Sole Establishment
What Is Sole Establishment in the UAE
A sole establishment is a mainland business owned by one person, registered in the owner's own name with no separate legal personality. The owner carries unlimited personal liability for its obligations — the defining difference from an LLC.
Why it matters
Why it matters when opening a company
It is the simplest mainland form for one professional: no shareholders, no MOA between parties, fast to register.
Unlimited liability is the price — personal assets stand behind business debts, which is why trading businesses usually choose an LLC instead.
Mini-FAQ
Common questions
Can a sole establishment have partners?
No — exactly one owner. Adding partners means converting to an LLC (or a civil company for professionals).
Does a sole establishment pay corporate tax?
Yes — business income is taxed like other entities; how the owner's own remuneration is treated depends on the structure, so confirm with a tax adviser.