.png)
Starting a business in Dubai means choosing the right legal structure and the two most common options are Limited Liability Company (LLC) and Sole Establishment. Each comes with its own advantages, risks, and compliance requirements.
What Is an LLC in Dubai?
An LLC is a separate legal entity that protects the personal assets of its owners. Liability is limited to the amount invested, making it a safer choice for businesses with higher risk or growth ambitions. LLCs can have up to 50 shareholders, or even exist as a One Person LLC. Recent reforms allow 100% foreign ownership in most sectors, making LLCs attractive to expatriates.
What Is a Sole Establishment?
A Sole Establishment is owned and operated by one individual. It is simpler and cheaper to set up, with fewer compliance requirements. However, the owner has unlimited liability, meaning personal assets are exposed to business debts. Sole Establishments are best suited for freelancers, consultants, and small service providers.
Key Differences
Liability: LLC = limited liability; Sole Establishment = unlimited liability.
Ownership: LLC allows multiple shareholders; Sole Establishment = single owner.
Legal Status: LLC is a separate entity; Sole Establishment is tied to the owner.
Growth Potential: LLC supports scaling and investment; Sole Establishment is better for small operations.
When to Choose LLC
Opt for an LLC if you plan to expand, attract investors, or want personal asset protection.
When to Choose Sole Establishment
Choose Sole Establishment if you’re a freelancer or consultant seeking a low‑cost, straightforward setup with direct control.