DED starts registration of sole proprietor companies for Emiratis

Dubai: Dubai Department of Economic Development (DED) has started the registration of sole proprietor companies for Emiratis as a legal form of business structures and individual establishments, the organisation said in a statement on Saturday.

“The move, which is in line with federal law No. 2 for 2015 on trading companies, issued by President His Highness Shaikh Khalifa Bin Zayed Al Nahyan, is vital for facilitating setting up businesses for Emirati investors and entrepreneurs. It is a unique leap in the UAE’s economy, and Dubai in particular and also forms a boost to sustainable development,” the statement said.

The federal law is aimed at contributing to developing the business environment and the UAE’s capabilities and economic position through regulating companies in accordance with global changes, particularly with respect to regulating governance rules, protecting the rights of shareholders and partners, supporting inflow of foreign investments and strengthening the social responsibility of companies.

Omar Bu Shahab, executive director of the Registration and Trade Licensing Sector at the DED, said: “The department has taken steps to speed up the implementation of Shaikh Khalifa’s directives as stated in the federal law on trading companies due to its role in strengthening sustainable economic development in the country and increase its competitiveness regionally and globally.”

He added that the setting up of the one-person owned business would contribute to supporting the economic diversification policy and speeding up the UAE’s transformation into a knowledge economy based on creativity and innovation as per the UAE Vision 2021 and its national agenda.

Bu Shahab urged Emirati investors who are interested in starting business and adopt the legal form of sole proprietor company to complete all procedures regarding the issuance of the licence.

The sole proprietorship is an establishment owned by a sole proprietor to operate an economic activity (commercial, professional, industrial, agricultural or real estate). An establishment’s financial liability is linked to the proprietor who shall be responsible for all its financial obligations.