Assuming a permit includes a visa
Some do and some do not. Read the zone's own page before you pay.
Business setup · Freelance permit
Work for yourself in the UAE, and know when a freelance permit stops being enough
Freelance permits, the tax position and when a company is the better choice.
Who this guide is for
Freelancing in the UAE is not one thing. It is several routes with different rules, and only some of them give you a visa.
- Consultants, designers, writers, developers and other skilled people who work alone.
- Creators and sellers who earn from social media or online platforms.
- People who want to start with the lightest legal setup and are not sure they need a company.
- Freelancers who already earn well and want to know whether they have crossed a tax line.
We describe only the routes that an authority's own page confirms. Where Dubai's government portal does not describe a route, we say so and recommend you confirm with the authority, rather than fill the gap.
The routes
Free zone freelance permits
Several free zones offer a freelancer package. RAKEZ describes a freelancer permit that covers one activity, gives access to a business centre and allows residence visa eligibility, and says the holder cannot employ staff, cannot hold extra visas, does not get a company name and does not get a corporate bank account. DMCC describes a basic freelance package without a visa and a higher package that adds the visa and the establishment card. Ajman Free Zone lists a Freelancer Package and a Freelancer and Pioneers Hub, though its page does not say what they cover.
Not every zone offers one. Meydan says it does not issue freelance visas directly and points to its instant business licence with an investor visa instead. Always read the zone's own page, because the name of a package tells you little about what it permits.
The Dubai mainland
Dubai's government portal lists a professional licence, an e-trader licence and a sole proprietorship, and says each allows full foreign ownership. The e-trader licence is for home-based sellers through social media and online platforms and is issued only as a sole proprietorship. The portal does not describe a licence called a freelance permit. If a provider offers you a mainland freelance permit in Dubai, ask the Department of Economy and Tourism what document it is.
The federal freelance work permit
The UAE Government portal describes a freelance work permit issued by the Ministry of Human Resources and Emiratisation for independent work with no employer sponsor and no employment contract, and says it includes foreign nationals on self-sponsored visas. The page does not state fees or validity, so we confirm those when we apply.
Other emirates
Abu Dhabi's Department of Economic Development lists a freelancer licence among its licence types. That is an Abu Dhabi licence. It does not apply in Dubai or Sharjah.
What a freelance permit does and does not let you do
The limits come from the issuing authority, and only some publish them. RAKEZ states the limits above. Where a zone does not publish limits on staff, clients or activities, ask in writing before you buy, because a permit that restricts you to one activity or to your own name changes what you can invoice and how you bank.
- Activity: some permits cover one activity or a short approved list.
- People: a permit may not allow employees or extra visas.
- Banking: some permits do not come with a company name, so a corporate bank account may not be possible.
- Visa: some permits make you eligible for a residence visa and others do not.
- Clients: we found no official limit on the number of clients, so ask before you assume one.
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Visa implications
A residence visa is not automatic with a freelance permit. The UAE Government portal describes a green residence visa that covers investors and business partners, skilled workers and freelancers, valid for 5 years with no sponsor. Free zone permits differ: RAKEZ says the permit makes you eligible for a residence visa, DMCC's higher package adds the visa, and Meydan points owners to an investor visa under a business licence instead.
If you want the visa to be tied to your own company, the investor or partner visa through a licence is the more usual route. See the visa guides for how each works.
Tax: when your turnover triggers corporate tax
Many freelancers assume they are outside corporate tax. They are, until their business turnover passes one line.
Cabinet Decision No. 49 of 2023 makes a natural person's business subject to corporate tax only where total turnover from the business exceeds AED 1,000,000 in a calendar year. Turnover means gross income in the calendar year. Wages, personal investment income and real estate investment income are excluded, and a person whose turnover does not pass the line does not need to register.
The Federal Tax Authority's guide for natural persons adds that payments in kind count towards turnover. It names a freelance licence as one of the licence types issued by local governments, and uses a self-employed consultant and a freelance designer in its examples. Above the line, the rates are the same as for a company: 0% on taxable income up to AED 375,000 and 9% above. The tax period is the calendar year and the return is due within 9 months of its end.
A resident individual who passes the line registers by 31 March of the following year, under Federal Tax Authority Decision No. 3 of 2024. Late registration carries a penalty of AED 10,000. Keep records from the first day, because you will need them to show where you stood against the line.
VAT
VAT is a separate test. Mandatory registration applies when taxable supplies pass AED 375,000, and voluntary registration starts from AED 187,500. A freelancer can cross the VAT line without crossing the corporate tax line.
When a company is better than a freelance permit
This section is our professional view, not an official position. No authority says when a company is better, and the answer depends on your facts.
- You want to hire, and the permit does not allow employees or extra visas.
- You want a company name and a corporate bank account.
- You want to invoice mainland customers, which can need a mainland licence or a Dubai permit for free zone companies.
- Your turnover is approaching the corporate tax line, and you want to model the tax with a company structure and Small Business Relief.
- You want to hold a visa tied to your own company as an owner rather than through a permit.
A permit is a sensible start if you work alone, for clients abroad, on one activity, and you are testing the idea. A company is a better base once the business has a team, a client list or a tax line to manage.
Choosing a route, step by step
Describe the work
Write down the activity, your clients and where they are.
Check the route offers it
Confirm the authority's own page covers your activity and gives the visa you need.
Check the limits
Ask about staff, extra visas, company name and banking, in writing.
Check your tax position
Compare your expected business turnover with the corporate tax line and the VAT threshold.
Apply, then register
Apply to the authority, then register for tax if a threshold is reached.
Review each year
Move to a company when the limits start to cost you.
Common mistakes
Missing the corporate tax line
Turnover above the line makes you a taxable person. Wages are excluded, but in-kind payments count.
Ignoring VAT
The VAT threshold is separate. You can cross it before you cross the corporate tax line.
Using one emirate's licence in another
Abu Dhabi's freelancer licence does not work in Dubai or Sharjah.
Costs
Permit fees are set by each authority and zone. We quote the current figures for your route.
Freelance permit
Get a quote
Depends on the route and the authority.
VAT registration
Get a quote
Our fee, quoted per case.
Corporate tax registration
Get a quote
Our fee, quoted per case.
An illustrative example
Illustrative example, not a client
A freelance designer with a growing client list
A designer works alone for clients in Europe and a few in Dubai. She started on a free zone freelancer permit for one activity and is now earning more each year.
We first compare her turnover with the corporate tax line, remembering that wages do not count and in-kind payments do. If she is near the line, she needs to plan registration by 31 March of the following year, and keep records for it.
We then compare staying on the permit with a company. If she wants to hire an assistant, hold a company bank account and invoice Dubai clients directly, a company or a mainland licence fits better. We model the tax in both cases, and move her only when the numbers and the limits point the same way.
Frequently asked questions
Is there a freelance licence in the UAE?
There is no single one. Free zones offer freelancer packages, Dubai's portal lists professional and e-trader licences for individuals, and the federal portal describes a freelance work permit. Abu Dhabi lists a freelancer licence of its own.
Does a freelance permit give me a residence visa?
It depends on the zone. RAKEZ says the permit makes you eligible for a residence visa, and DMCC's higher package adds the visa. Meydan says it does not issue freelance visas directly.
Can I hire staff on a freelance permit?
RAKEZ says its permit holder cannot employ staff or hold extra visas. Other zones set their own limits, so ask in writing.
What is the federal freelance work permit?
The UAE Government portal describes it as a permit for independent work with no employer sponsor and no contract, and says it includes foreign nationals on self-sponsored visas. Confirm fees and validity with the Ministry.
When does a freelancer pay corporate tax?
When total business turnover exceeds AED 1,000,000 in a calendar year. Wages, personal investment income and real estate investment income are excluded.
Do payments in kind count towards the corporate tax line?
Yes. The Federal Tax Authority's guide says payments in kind count towards turnover.
When must a freelancer register for corporate tax?
A resident individual whose turnover passes the line registers by 31 March of the following year. Late registration carries a penalty of AED 10,000.
When must a freelancer register for VAT?
When taxable supplies pass AED 375,000. Voluntary registration starts from AED 187,500. This test is separate from corporate tax.
When is a company better than a permit?
It is our view, not an official one: when you want to hire, hold a company bank account, invoice mainland customers, or manage a tax line with a company structure. We compare both for your facts.
General information based on UAE rules at the time of writing. It is not tax or legal advice for your situation. Speak to us before you decide.
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