To foster a more flexible job market and draw and keep talent, the United Arab Emirates has been making it simpler and more economical for its independent freelancers to apply for licenses.

The COVID-19 pandemic accelerated the change in working habits, which has made the gig economy more popular in the Emirates, particularly among younger people who like its enhanced freedom.

To operate as a freelancer in the United Arab Emirates, you must have a residency visa and a freelance license or work permission. Packages that contain both the resident visa and the freelance permission are available from certain free zones and business setup firms. Verifying whether the visa is covered by your selected package is crucial.

Health insurance usually needs to be acquired independently and is not included in the freelance permit or visa packages.

Many business owners begin as freelancers before upgrading to a company structure once they are established.

However, you can only apply for a UAE freelance license if you engage in specific, government-approved professional activities.

Danish Qazi, senior associate at the legal firm BSA Ahmad Bin Hezeem & Associates, says freelance is most suited for people in creative occupations like artists, copywriters, designers, and similar fields.

“For a UAE entrepreneur, getting a freelancing license is comparatively simpler and easier than obtaining an SME company license. However, a full-fledged trade license can be a prerequisite if you plan to collaborate with bigger businesses or win government contracts. Additionally, freelancers are unable to receive a tax registration number issued by the Federal Tax Authority, which corporate clients may request.” Mr. Qazi says.

Many emirates and free zones are competing with one another to attempt to reduce the cost of freelancer licenses, according to James Swallow, commercial director at Sovereign PPG, a company that helps with business development and assistance.

If a person’s turnover reaches the threshold, they should also consider registering for corporate and value-added tax. According to Mr. Swallow, “individuals with freelance permission are still required to register for VAT if their yearly turnover exceeds Dh375,000 ($102,110).”

A person with a freelancing license can apply for a personal bank account and is only allowed to sponsor partners, dependents, and children; they are not allowed to hire employees. They must change the license into a limited liability corporation if they wish to grow the company and add employees.

The applicant’s passport or identification is needed in terms of documentation. In some situations, you may be required to demonstrate experience in a particular industry or subject or to have achieved academic or professional success in that field.

A qualification at the degree level can be used for this. Depending on the activity, you might need to have your degree certificate signed or attested by the UAE embassy in the nation where you earned your degree. Mr. Swallow says.

The talent-on-demand platform Outsized, which uses data from its platform, said that freelance registrations in the Middle East and North Africa region rose 142% between 2022 and the previous year.

We analyze how much it costs to apply for a UAE freelancer license.

Abu Dhabi freelancer license

The Abu Dhabi Department of Economic Development is responsible for issuing mainland licenses to freelancers. The license holder has the right to enter into agreements and collaborate with businesses in both the free zones and Abu Dhabi.

It gives the license holder and his or her family a resident visa and costs about Dh7,500. According to Mr. Swallow, freelancers typically engage in professional, service, and consulting activities. The license is granted for a year at first and can be renewed yearly.

As of August 15, 2024, Abu Dhabi freelancer licenses are available for 100 business activities. They were previously strictly limited to professional services, most frequently in the media, IT, and educational sectors; now, more and more activities are becoming eligible for freelance licenses.

Abu Dhabi’s freelancer license category now includes AI development, 3D model creation, electronic and software design, data classification and analysis services, software design for oil and gas production, and online player support providers.

Dubai’s e-Trader license

Freelancers who provide online services are eligible for Dubai’s Department of Economic Development’s e-Trader license.

The annual license renewal is required, and the license charge is Dh1,070.

You can start selling products and services on social media by obtaining an e-trader license in Dubai. Nevertheless, an e-Trader license holder is not permitted to create a physical store. The license holder needs separate approval from the relevant DED authorities to sell products and services in other emirates.

An e-Trader license in Dubai can be applied for by a single-person home-based business that does not require a local partner. To apply for this license, the applicant needs to be a resident of Dubai and meet the minimum age requirement of 21.

Dubai’s Department of Economy and Tourism claims that obtaining an e-Trader license, which was established in 2017, just takes a few minutes by enrolling on invest.dubai.ae.

two four 54’s freelance visa

With VAT included, the freelance work permit for Abu Dhabi Media Free Zone twofour54 costs Dh3,538.5. This excludes the required health insurance premiums, though.

In order to receive a freelancer license, the twofour54 free zone must support the applicant’s residency visa.

Only businesses involved in the media are eligible for this authorization. Pre-production, production, post-production, public relations, marketing, gaming, and creative design are just a few of the more than 60 media-related fields in which the free zone offers freelancing licenses.

The applicant can only work with registered twofour54 partner companies within the Abu Dhabi free zone.

Tecom’s Go Freelance scheme

You can work as a freelancer in Dubai Internet City, Dubai Media City, Dubai Knowledge Park, and Dubai Design District by enrolling in Tecom’s Go Freelance program.

The permit costs Dh7,500 for a year and must be renewed every year. For an extra fee, permit holders can also apply for family and dependent visas. According to the initiative’s website, a one-year visa for the applicant or their family costs Dh4,600, while a two-year visa costs Dh5,042.

Through the Marketplace, a platform specifically designed to assist freelancers, the license holder can submit bids on tasks and grow their network. The following business activities are chosen for this kind of visa: design, media, education, and technology.

DMCC’s Freelance UAE licence

It costs around Dh4,000 annually to obtain a Freelance UAE license from the Dubai Multi Commodities Center free zone.

For Dh9,136, they also provide a one-year Freelance UAE license, one-year visa, and one-year establishment card. In contrast, a two-year UAE Freelance license, two-year visa, and two-year establishment card cost Dh14,136.

Influencer/content creator, model, interior designer, makeup artist, novelist, game developer, and software developer are among the activities allowed under this license.

Ras Al Khaimah Economic Zone Freelance Permit

Media and education professionals are the primary target audience for the Ras Al Khaimah Economic Zone’s Freelance Permit, which has annual fees as low as Dh6,100.

The necessary paperwork consists of a copy of the applicant’s passport, a copy of a valid UAE residency visa (if applying for a permit without a visa), a portfolio or qualification certificate, and the sponsor’s no objection certificate.

Fujairah Creative City

There is no freelancer license available in this free zone. Rather, it offers a trade license that is renewable for Dh10,000 a year. For Dh21,000, it also provides a two-year resident visa and a one-year trading license, which can be extended to Dh14,000 after a year.

The trade license is intended for media, marketing, and consulting firms, and the company may have up to four owners.

Sharjah Publishing City Free Zone

For a maximum of five years, skilled workers and independent contractors are permitted to sponsor themselves with this visa.

Green Visa

For a maximum of five years, skilled workers and independent contractors are permitted to sponsor themselves with this visa.

Candidates must meet certain income requirements and hold a bachelor’s degree or specialized certification in order to be eligible. A monthly salary of Dh15,000 is required.

Golden Visa

Another well-liked choice is the Golden Visa, which offers a 10-year residency that is renewable. The opportunity to sponsor family members and keep residency even after prolonged stays overseas are two of the many advantages of this visa.

The General Directorate of Residency and Foreigners Affairs in Dubai charges Dh3,860 to process a 10-year golden visa.

Investors, entrepreneurs, medical experts, scientists, professionals, extraordinary talents, outstanding students and graduates, property investors, teachers, humanitarian pioneers, and skilled professionals making more than Dh30,000 per month are all eligible for the visa.

Remote worker visa

The UAE Remote Worker Visa and Dubai Digital Nomad Visa allow one-year stays for digital nomads and remote workers.

SME business licenses

Your expenses could range from Dh20,000 to Dh60,000 if you establish a fully-fledged business with some free zones, depending on your location, the number of residency visas you need, your bank accounts, and the kind of work you intend to conduct. According to Mr. Qazi.

According to Mr. Swallow, the UAE has also lowered the fees for obtaining an SME business license. The cost of forming an LLC has decreased in Dubai and Abu Dhabi.