Saturday, March 28, 2015

Top ten rules of freelancing in the UAE




Freelancing is working for yourself, which is legal as long as you are licensed to do so
Freelancing is a work option for many in the UAE. Increasingly many companies are looking to hire freelance workers in various fields such as programmers, web developers, graphic designers, writers, data entry staff and more at a fraction of the cost when compared to full-time employees.

Though freelancing seems a viable and an attractive way to work for many in the country, there are employees who are not sure about the rules that should govern their scope of work.


1. May I legally freelance in the UAE?


Yes, you may freelance in the UAE!  However, it is important to distinguish between part-time work and freelancing.  Freelancing is working for yourself, where you are essentially a company made up of one person, which is perfectly legal as long as you are licensed to do so.

2. So, I need a license?

Yes you do!  You will need to secure a Trade License pertaining to your business activity from your selected Licensing Authority, and adhere to their stipulations.

3. What kind of license do I need?

The kind of license you need depends on the nature of the business you are looking to conduct.
There are two main ways of setting-up a business in Dubai and different license options for both, which a business setup specialist can explain in detail. The first is through the Dubai Department of Economic Development and the second is through one of the many Free Zones

a) Dubai Department of Economic Development (DED) Business Setup
The main license types in the DED are:
1. Commercial (51 per cent Emirati-owned; 49 per cent foreign-owned)
2. Services/Professional/Consultancy (100 per cent expat-owned with a local Emirati service agent).

b. Free Zone (FZ) Business Setup

For the free zones, both of the above license options apply, but the main differences are 1. an Emirati partner is not required, and 2. FZ businesses are 100 per cent expat owned.

4. What are other benefits of setting-up through a Free Zone?
The general benefits of setting-up through a FZ are that companies can remain 100 per cent foreign-owned and benefit from being “tax free” for 50 years, according to Article 15 of Law No. 1 of 2000 of the Emirate of Dubai.

Visas

5. If I’m not a resident, may I obtain a residency visa through one of these license options?


Yes, you may!

6. May I freelance if I’m on my husband’s visa?


Yes, you may!  You would first need to obtain a No Objection Certificate (NOC) from your husband as well as a labour card issued from the licensing authority/immigration office of the Emirate where the freelance company has been registered.

7. I’m working full-time but I’m interested in turning my hobby into a business.  May I obtain a license even if I’m sponsored by my employer?


Yes, you may!  Most (not all) licensing authorities would request you to provide a No Objection Certificate (NOC) from your employer in order for you to start your own freelancer company.

8. How long will it take to get a freelance license and setup my business?

On average the process can take anywhere from one week to ten days.

9. Do I need to rent office space?

The majority of licensing authorities do require you to have some sort of office space within their jurisdiction, be it something minimal like a flexi-desk or a smart office, which is often already built into the price of the company setup package offered. These packages are typically catered to fit the needs of freelancers like you.

Some licensing authorities are even able to provide you with a Trade License without taking office space of any sort. However, under this option you wouldn’t be able to secure any residency visas on the company, so this option is best suited to a freelancer who already has a residency visa be it through their spouse, parent or current employer.

10. Do I have to get a freelance license through a business setup specialist or can I do it myself?

You certainly can do it yourself, however most of our community members have testified that using a business setup specialist was a wiser, more sensible and efficient option, as setting up a company in the UAE can be a very time consuming and draining process.

There are so many facets to consider when setting up a new business in the UAE, like obtaining your trade license, applying for your visa, getting business cards printed and setting up your bank account. The business setup specialist takes care of all the admin, allowing you to 
focus your attention on developing and growing your business.


We at Elegant Business Services provide company registration services / Freelance permit Services from start to finish. Please contact us on +971-055 174 5764  or info@elegantbusiness.ae or visit our website www.elegantbusienss.ae for more information.


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