Starting a business in Dubai can be exciting, however it can even feel confusing with so many company types to pick from. One option that makes things easier for solo business owners is the Single Person Company (SPC) LLC. It’s a legal structure where one person owns and controls the entire company. That person gets full control over decisions but still has some protection like a bigger business.
SPC LLC is made for people who want to run a business alone but don’t want to risk everything they own if things go wrong. It’s allowed in Dubai Mainland, which means the business can work anywhere in the UAE without big limits.
SPC LLC
A single-person limited liability company is a type of business that has just one owner, also known as a shareholder. That person can be a UAE national or a GCC national, depending on the business activity.
The name says it all: “single person” means only one person owns it, and “limited liability” means the owner is not fully responsible if the company has debts or losses. The owner only loses what was invested, not personal money or a house or a car. Get details about LLC Company Formation in Dubai.
Why Start an SPC LLC in Dubai Mainland?
There are good reasons to choose this setup if someone wants to run a business alone:
- Full control- no need to ask partners or wait for approval.
- Limited risk- the owner’s personal money is safe.
- Business freedom- can trade or work across the UAE mainland.
- Easy rules- The process is not hard if done step by step.
It’s good for people who don’t want to deal with multiple owners or share profits.
Activities Allowed
Dubai Mainland allows SPC LLCs to run many types of businesses. These include:
- Retail shops
- Tech services
- Repair services
- Consulting
- Small factories
- Real estate activities
Some activities may need extra approvals, so it’s smart to check the list before applying.
Steps to Register an SPC LLC
Even though it sounds complex, the process is pretty simple:
- Choose the activity- pick what the company will do.
- Pick a trade name- make sure it’s not taken and follow naming rules.
- Get initial approval-Submit the documents to get a green light from the Department of Economy and Tourism (DET).
- Prepare legal documents- draft the Memorandum of Association (MoA), showing business details.
- Rent an office space- Dubai Mainland rules say you must have a physical office.
- Get license- After all papers are ready and rent is done, the license will be issued.
- Start working- once the license comes, the business can begin.
Each step has some paperwork, but local service providers can help make it fast.
Key Benefits of SPC LLC
People often wonder what makes this structure special. Here’s what it offers:
- No local sponsor is needed for full ownership if it’s a professional license.
- Low setup cost compared to other models.
- No corporate tax for most small businesses under AED 375,000 net profit.
- Easy to scale later into a bigger business or multi-owner company.
The best part? It’s also kind of like owning a freelance business, but with legal clout.
Things to Keep in Mind
There are a few things that people should remember before starting:
- Only one person can be the owner.
- Some activities still need government approval.
- It’s required to have an office, even if it’s small.
- Taxes may apply if profits cross limits.
- It’s best to renew the license every year to avoid fines.
So while SPC LLC provides freedom, it also involves obligations. Neglecting small things could mean fines or legal trouble. Obtaining an International Business License in Dubai.
Who Can Open an SPC LLC?
As of now, UAE citizens can open an SPC LLC with full ownership in most activities. In many cases, foreign investors can also apply for 100% ownership if the business is in professional or approved commercial sectors. The UAE government has made rules more flexible over time to attract business owners.
Setting Up an SPC LLC in Dubai Mainland
The Single Person Company (SPC) LLC is a smart and easy way for one person to start a business in Dubai Mainland. It gives the owner freedom, limited risk, and access to a wide market. The setup steps are simple, and the benefits are strong. For anyone planning to go solo in the UAE, SPC LLC might be just the right way to begin.
FAQs
UAE and GCC nationals can open an SPC LLC, and some foreign nationals may qualify depending on the activity.
Yes, the single owner holds 100% ownership of the company.
Yes, it can do business anywhere in the UAE mainland.
Yes, a physical office space is mandatory for the license.
Yes, only business assets are at risk, not personal ones.