Going solo doesn’t mean going unprotected. Since the UAE Commercial Companies Law made single-shareholder LLCs possible, one person can own 100% of a limited liability company – no partners, no local sponsor, full liability protection. This guide has been updated for 2026 with current costs, requirements, and the mainland vs free zone trade-offs.
What Is a One-Person Company in the UAE?
A one-person company (OPC) is a limited liability company with a single shareholder. It combines the simplicity of a sole establishment with the legal protection of an LLC: your personal assets stay separate from the business, and you own 100% of the shares. One important rule – the single shareholder must be an individual, not another company, and the owner must appoint a manager (you can appoint yourself).
One-Person LLC vs Sole Establishment
- One-person LLC – a separate legal entity. Your liability is limited to the company’s capital. Best for anyone taking on contracts, staff, or commercial risk.
- Sole establishment (sole proprietorship) – you and the business are legally the same person, so you carry unlimited personal liability. Cheaper and simpler, but riskier as you grow.
For most consultants, traders, and service providers, the one-person LLC is worth the difference – especially since both structures now face the same tax rules: 9% corporate tax on profits above AED 375,000 and 5% VAT registration once turnover passes AED 375,000.
What It Costs in 2026
- Free zone one-person company: from roughly AED 10,000–15,000 for a licence-only package (0–1 visas, shared workspace), scaling with visa quota. Estimate your exact figure with our cost calculator.
- Mainland one-person LLC: typically AED 15,000–30,000 for licensing and registration, and AED 30,000–50,000 all-in for the first year once you add a physical office lease (mainland LLCs cannot use virtual offices) and an investor visa.
- Share capital: most activities have no minimum paid-up capital; a mainland LLC usually declares AED 50,000 without needing to deposit it. Only certain regulated professions carry real capital requirements.
How to Set Up a One-Person Company: Step by Step
- Choose your activity – the licensed activity determines the licence type (commercial, professional, industrial) and the authority’s requirements.
- Pick mainland or free zone – mainland (via the DED) lets you trade anywhere in the UAE and take government contracts; free zones offer lower entry costs and streamlined admin. Both allow 100% foreign ownership for most activities.
- Reserve a trade name – one-person LLCs registered on the mainland include “LLC – SO” (single owner) in the name.
- Get initial approval and draft the MOA – for a single-shareholder LLC, the memorandum records you as 100% owner and names the manager.
- Secure premises – an Ejari-registered office for mainland, or a flexi-desk/office package in a free zone.
- Pay licence fees and receive your licence – with the right documents ready, this typically takes 5–10 working days end to end.
- After the licence: apply for your establishment card and investor visa, open a corporate bank account, and register for corporate tax (and VAT if you expect to cross the threshold).
Ongoing Obligations to Budget For
- Annual licence renewal with the DED or your free zone authority.
- Accounting and audit: mainland one-person LLCs are generally required to maintain audited financials annually; free zones vary by authority.
- Corporate tax filing every year, even if your profit is below the AED 375,000 threshold – registration and filing are mandatory.
In Conclusion
A one-person company gives solo founders in the UAE the best of both worlds in 2026: complete ownership and control, limited liability, and access to either mainland or free zone benefits. Entry costs start around AED 10,000–15,000 in a free zone, the process takes about a week with clean paperwork, and the structure grows with you – you can add shareholders and convert to a standard LLC later if the business scales.
How Can SetHub Help?
SetHub has helped thousands of solo founders choose the right structure, jurisdiction, and licence – and we’ll tell you honestly when a sole establishment or freelance permit suits you better than an LLC. From trade name to bank account, we handle the entire setup. Schedule a call online and our consultants will get back to you within one business hour.
Frequently Asked Questions
Can one person own an LLC in the UAE?
Yes. The Commercial Companies Law allows single-shareholder LLCs with 100% ownership. The shareholder must be an individual, not a company.
How much does a one-person company cost in the UAE?
Free zone packages start around AED 10,000–15,000; a mainland setup with an office and visa typically totals AED 30,000–50,000 in the first year.
Does a one-person company pay corporate tax?
Yes. 9% applies on profits above AED 375,000, and registration plus annual filing are mandatory even below the threshold.