Differences, benefits & your best choice

If you have already decided to start a business in the UAE, your next question might be what business type should you go ahead with?

It is imperative to get it right because it is not always possible to change it at a later stage. So if you are wondering if you should go for LLC (Limited Liability Company) or Sole Proprietorship, this is the blog for you. To make this decision it is important you understand what is the difference between both of them.

What is a Sole Proprietorship?

  • Need only one partner, giving you 100% ownership
  • You can get a virtual office
  • It is more oriented towards the service industry like consultancies, accounting, digital marketing agencies
  • You would need to get a professional license from the DED
  • Qualifies you for a lifetime investor visa

What is LLC?

  • A limited liability company has a share structure that requires more than one shareholder.
  • You can operate within the entire country and also import & export
  • Get multiple visas under your company
  • You would need to get a commercial trade license from the Department of Economic Development (DED)

How to decide between LLC and Sole Proprietorship?

To take this ultimate decision, you need to look at your business structure; would it benefit you to have other partners or just one? You should also look at the risk factors involved in your business, as a sole proprietor, you will have 100% ownership, which also means you would be the one responsible if anything goes wrong. Do you have enough resources to take care of all the expenses by yourself or would having a partner pool in their resources help you?

All of these questions can help you decide which structure is the best for you, but if you need more guidance you can talk to our consultants for free. Get in touch today at info@exillium.com

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