Activities · Freelancers and solo professionals (freelance permits versus a company)
Set up a Freelancers and solo professionals (freelance permits versus a company) company in the UAE.
Freelancers in the UAE can operate under a freelance permit (from a free zone or mainland) or set up a one-person company (FZ-LLC). The choice depends on activity type, client location, need to hire staff, and tax implications. Freelance permits are cheaper and simpler but restrict hiring and may limit banking to personal accounts. A one-person company allows business banking, hiring, and corporate tax registration but costs more and requires annual compliance.
Freelance permit (from free zone or mainland) or one-person free zone company (FZ-LLC) depending on business needs.
When your clients are mainland-based, or you need to sponsor multiple employees, or you require a tax registration number for corporate contracts. Mainland freelance licences (e.g., Abu Dhabi freelancer licence, Dubai e-Trader) allow direct mainland contracting. thenationalnews.com
Zones that fit the activity
Names as the researchers wrote them, with the catalogue entry where the zone publishes one. A price is a package price and may cover a different package than another zone.
| Zone | Why | Catalogue entry | Package price | Source |
|---|---|---|---|---|
| Abu Dhabi Department of Economic Development | Lowest official mainland freelance licence fee; includes 6 activities. Allows direct mainland contracting. adra.gov.ae | Freelancer Licence | not published | source |
| Dubai Department of Economic Development | Low-cost mainland licence for online services. thenationalnews.com | e-Trader Licence | not published | source |
| Dubai Development Authority | Well-known GoFreelance permit; allows sole professional practice. Official fee schedule published. dda.gov.ae | Freelancer License (Sole Professional License) | not published | source |
| Expo City Dubai, Free Zone | Flexible freelance permit with high-tech office solutions. expocitydubai.com | Freelance permit | not published | source |
| Dubai Multi Commodities Centre | FreelanceUAE licence at competitive rate; packages with visa available. thenationalnews.com | FreelanceUAE licence | not published | source |
| twofour54 | Freelance work permit for media professionals; VAT included. thenationalnews.com | Freelance work permit | not published | source |
| Ras Al Khaimah Economic Zone | Freelance permit aimed at media and education professionals. thenationalnews.com | Freelance Permit | not published | source |
Approvals outside the free zone
Relevant external authority (e.g., sponsor)
Issuing academic institution / UAE attestation authorities
Freelance permit holders must register for VAT if annual turnover exceeds amount not yet confirmed. Corporate tax registration is required only if turnover exceeds amount not yet confirmed for permit holders, while a company must register within 3 months of incorporation regardless of revenue (late registration penalty amount not yet confirmed). dxbstart.com thenationalnews.com
Freelance permit holders can typically open only personal bank accounts. A one-person company can open a business bank account, which is preferred for loans and corporate transactions. thenationalnews.com thenationalnews.com
Mistakes that cost a resubmission
- Assuming a freelance permit allows trading activities (it does not). source
- Not checking client location, mainland clients may require a mainland licence. source
- Overlooking VAT registration when turnover exceeds threshold. source
- Confusing a freelance permit with a company for corporate tax purposes, leading to penalties. source
- Expecting to hire staff under a freelance permit. source
Questions founders ask
Yes, many freelance permits allow sponsorship of dependents (spouse, children) for an additional visa fee. For example, DDA GoFreelance permit holders can apply for family visas at extra cost. thenationalnews.com
No, freelance permits do not require physical office space. However, if you later convert to an LLC and need to hire staff, office space may be required. thenationalnews.com
No, a freelance permit is for a sole practitioner. To hire staff, you must convert to a limited liability company. thenationalnews.com
A freelance permit is a personal licence to work as an individual, with restrictions on hiring and banking. A one-person company (FZ-LLC) is a separate legal entity that allows business banking, hiring, and corporate tax registration, but costs more and requires annual compliance. dxbstart.com thenationalnews.com
What the research does not settle
- Total first-year cost including visa and medical insurance is often higher than the licence fee alone; for DDA, first-year total with visa can be amount not yet confirmed (per The National). ADRA basic fee of amount not yet confirmed may not include visa costs; the article mentions a total of amount not yet confirmed with visa.
- Some free zone freelance permit prices (DMCC, twofour54, RAK) are sourced from news articles, not official websites, and may not reflect current official fees.
- Exact activity names in official catalogues were not provided for all zones.
- The ADRA page does not detail additional mandatory fees (e.g., medical, visa) beyond the basic licence cost.