Sole Proprietorship LLC - REGISTRATION

One of my client, who owns a "Sole Proprietorship LLC" License in Abu Dhabi, recently took another license of the same kind. The first company is registered for VAT. Is it possible to include the new company under the old TRN or should I go for a different registration? Pls note both are sole proprietorship LLC

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Tejveer Singh18/10/2022 17:41:53

Please note if both(Sole Proprietorship LLC) owners are the same. Then, there is no requirement to apply for a new TRN. You may add the trade license under the old TRN profile (Sole Proprietorship LLC) and you can report all taxable supplies and VAT the under the old TRN. However, for more information, you may refer to "VAT registration of ‘Sole Establishments’ VAT public clarification No. 26. It is available at FTA porta.

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RAMEES ALI19/10/2022 09:51:48

Hai Tejveer, thanks for your reply. I have gone through the public clarification already and it says " It should be noted that,for VAT purposes, a One-Person Company LLC orother similar entities are not considered soleestablishments, and are seen as a distinct andseparate legal person from their owner". So This sole proprietorship LLC is a one person LLC right?

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Tejveer Singh19/10/2022 12:25:46

One-Person Company LLC and sole establishments both are not similar (As per PC-26). You should check your trade license. If it is written as a legal type "sole establishment/establishment" then it may be considered.

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SAJITH N27/10/2022 10:24:22

If the legal status as per the licenses is Sole Proprietorship LLC then these are separate legal entities and will not be considered as natural persons/sole establishments. So you can either get separate TRN for the licenses or consider Tax Grouping (subject to meeting the group conditions).

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