If you are considering business formation in Dubai, you might be wondering about the type of business. It is important because the government of Dubai issues various licenses for different companies such as freelance licenses or others depending on the type of business. The license can also depend on the type of business activities and location.
Considering a freelance business setup in Dubai or UAE has pros and cons. They help to streamline cost savings, revenue generation, and operations.
Pros of Freelance Business in Dubai
Opportunity
Dubai is a fast-growing global business center and the government is creating and implementing new business policies to help independent businesses and entrepreneurs thrive. If you are an international freelancer, then consider Dubai as the perfect place to start a freelance business. It is because there is a special visa category through which foreign freelancers can have a self-employment permit. Also, they can apply for sponsor dependents and resident visas.
Flexibility
If you have a full-time job, you can work as an independent freelance consultant. For this purpose, you don’t need a no-objection certificate from the employer. If this is a perfect option you are choosing to pursue and expand the portfolio then the permit application process is easy and simple. You can receive a freelance business license within 7 to 14 business days with proper documentation.
Profitability
The costs of setting up an independent business are reasonable. They are much lower than a registered business. Also, you can save on the cost of office space. The fees of the freelance business setup can vary from one free zone to another. Therefore, there are specific free zones for such businesses that promote and grow your freelance business.
Cons of Freelance Business in Dubai
Apart from the pros of freelance business in Dubai, there are a few downsides of the freelance business and license.
Freelance permits are open to people in four main industries:
- Media (Entertainment and Journalism)
- Education
- Marketing
- Technology
These sectors are ideal for those who want to work independently.
No Hiring
In freelance business, you cannot hire employees as other registered or trading businesses can. If you are working with a client, then you can use the offices of the company. Also, you can use coworking spaces in the designated free zones.
No Business Bank Account
As a freelancer, one cannot have an account under the name of the freelance business. The only way to have online transactions is through a personal account. For a freelance business license, you need a permit or NOC from the employer.
In Conclusion
Before starting a freelance business, there are a lot of considerations you need to make. For some people, the pros might outweigh the cons or vice versa. Depending on the skills of a freelancer, this business can be of great success. The main benefit of setting up a business in UAE of freelancing is that you save a lot of cost on owning a Dubai Freezone company or workspace. You can complete the tasks even at home or at the workspace given by the client.
Surfer, doer, hiphop head, hand letterer and identity designer. Operating at the sweet spot between minimalism and computer science to save the world from bad design. My opinions belong to nobody but myself.
