UAE freelance licences now as low as Dh1,070 to attract talent

The UAE has been making it easier and more affordable for its freelance workforce to apply for licences as it seeks to create a more flexible job market to attract and retain talent . The shift in working habits , accelerated by the Covid-19 pandemic, has increased the popularity of the gig economy in the Emirates, especially among the younger generation, as it provides greater flexibility. You need a residence visa and a freelance licence or work permit to work as a freelancer in the UAE. Some free zones and business set-up companies offer packages that include both the freelance permit and the residency visa. It's essential to confirm whether the visa is included in your chosen package. Typically, health insurance is not included in the freelance permit or visa packages and must be arranged separately. Many entrepreneurs start out freelancing and then upgrade to a company set-up once established. However, you can apply for the UAE freelance licence only if you pursue selected professional activities approved by the government. Freelance is most suited for individuals of creative professions such as artists, copywriters, designers, and similar professions, according to Danish Qazi, senior associate at law firm BSA Ahmad Bin Hezeem & Associates. "It is relatively straightforward and easier to obtain a freelance licence as opposed to SME business licence for a UAE entrepreneur. However, if you intend to work with larger companies or procure government contracts, a full-fledged trade licence may be a minimum requirement. Moreover, corporate clients may request for a tax registration number issued by the Federal Tax Authority, which cannot be obtained by freelancers," Mr Qazi says. "It’s certainly easier to keep costs under control as a freelancer. You don’t have to pay employees, office space, utilities and many other expenses. Free zones would also let you rent a workstation if necessary. A freelance permit doesn’t have an obligatory requirement to keep the books, accounting and submit annual financial statements, which contributes to the costs and time considerations. However, again, lack of financial transparency can be an obstacle in being awarded certain types of jobs." James Swallow, commercial director at business formation and support company Sovereign PPG, says that a lot of the emirates and free zones are vying with each other to try to lower costs for freelancer licences . “We're seeing a big effort by everyone to try to encourage individual owners, small and medium enterprises and freelancers. It is becoming more affordable for freelancers and individual entrepreneurs to obtain a licence.” Although cost is a big consideration for most people looking to apply for a licence or set up a limited liability company in the UAE, they need to think about what activities they plan to pursue. “Are you importing and selling physical products, or are you delivering a service? Are you a consultant or a professional service provider? If you're a service provider offering services virtually, the freelance permit is more suited to you. If you're physically trading, then it might not work for you because the freelancer licence doesn't allow a trading activity,” Mr Swallow advises. “You also need to look at who are your clients. Are they based in the UAE, internationally or in a free zone? If your clients are international or free zone only, then you might be better off applying for a licence in a free zone . But if you're dealing with mainland clients, it might be better to have a mainland freelance licence.” He suggests considering expansion plans in terms of headcount or office space. This will help determine whether you are better off applying for an SME licence or freelancer permit. People also need to consider registering for value-added tax and corporate tax if their turnover hits the threshold. Even those on a freelance permit must register for VAT if their annual turnover is more than Dh375,000 ($102,110), Mr Swallow says. With a freelance licence , a person is eligible to apply for a personal bank account and can only sponsor dependents, children and a spouse, but cannot hire any staff. If they want to expand the business and hire staff, they need to convert the licence into a limited liability company. In terms of documents, the applicant’s passport or ID is required. In certain cases, you need to show experience in a specific field or industry or have earned an academic or professional achievement in that field. “This can be done using a degree-level qualification . It depends on the activity, but you may need to get your degree certificate attested or notarised from the country where you completed your degree through the UAE embassy,” Mr Swallow says. Freelance registrations in the Middle East and North Africa region increased by 142 per cent from 2022 to last year, according to a report by talent-on-demand platform Outsized, which draws on data from its platform. This growth is driven by the increasing demand for specialised expertise in various fields, says Azeem Zainulbhai, co-founder and chief product officer at Outsized. “The rise in freelance visas is part of the UAE’s broader vision to become a global talent hub and also a response to the global skills shortage, which is projected to leave 85.2 million positions unfilled by 2030,” he says. “The UAE's policies aim to bridge this gap by attracting top-tier independent talent through a combination of favourable visa regulations and targeted economic initiatives.” Technology and artificial intelligence are the most sought-after and lucrative fields for skilled independent professionals this year. The region's mega-projects , particularly in Saudi Arabia, have created opportunities for independent professionals specialising in product development, change management and FinTech, Mr Zainulbhai says. “The need for skilled professionals who can drive digital transformation initiatives has been particularly pronounced in niche areas such as oil and gas,” he adds. We take a look at the costs of applying for a freelancer licence in the UAE. The Abu Dhabi freelancer licence is a mainland licence issued by the Abu Dhabi Department of Economic Development. The licence holder has the right to contract and work with companies in Abu Dhabi as well as the free zones. It costs around Dh7,500 and grants a residence visa for the licence holder and his or her family. The freelancer activities tend to be around consultancy, service and professional activities, according to Mr Swallow. The licence is initially issued for a period of one year and is renewable annually. As of August 15, 2024, there are 100 business activities available for Abu Dhabi freelancer licences. Traditionally, they were tightly restricted to professional services, most commonly in media, IT and education; but increasingly, more activities are being opened up for freelance licence eligibility. Abu Dhabi has added AI development, 3D-model designing , electronic and software designing, data classification and analysis services, oil and gas production software design, and online players support providers to its freelancer licence category. Abu Dhabi first issued the freelancer licence in 2020 , initially covering 48 business activities. The e-Trader licence from Dubai’s Department of Economic Development is applicable for freelancers who offer online services. The licence fee is Dh1,070 and it is mandatory to renew the licence annually. By getting an e-Trader licence in Dubai, you can engage in offering products or services for sale on social platforms. However, an e-Trader licence holder cannot open a physical shop. The licence holder will also need to get separate approval from the respective DED authorities to sell their products and services in other emirates. A home-based business owned by a single individual that does not necessitate a local partner can apply for an e-Trader licence in Dubai. The applicant should reside in Dubai and should satisfy the minimum age requirement of 21 to apply for this licence. “Only Emiratis are able to do trading activities on an e-Trader licence, but you can do professional activities,” Mr Swallow says. “For this licence, you already need to have an Emirates ID and an Ejari to show that you're a Dubai resident. It tends to be for spouses or people already here on residency if they want to sell things on social media.” The e-Trader licence, which was set up in 2017, can be obtained within minutes by registering on invest.dubai.ae , according to Dubai’s Department of Economy and Tourism. The cost of Abu Dhabi media free zone twofour54’s freelance work permit is Dh3,538.5, including VAT. However, this does not include the mandatory health insurance fees. To obtain a freelancer licence, the applicant’s residency visa must be sponsored by the twofour54 free zone . This licensing is open only for media-related companies. The free zone provides freelance licences in more than 60 media-related categories, including pre-production, production and post-production, public relations, marketing, gaming and creative design. The applicant is only licensed to work within the Abu Dhabi free zone and with registered twofour54 partner companies. With Tecom's GoFreelance programme , you can become a freelancer at Dubai Internet City , Dubai Media City, Dubai Knowledge Park and Dubai Design District . The cost of the one-year permit is Dh7,500 and it has to be renewed annually. Permit holders can also apply for family and dependent visas for an additional cost. The one-year visa for the applicant or dependents costs Dh4,600 while a two-year visa can be obtained for Dh5,042, according to the initiative's website. The licence holder can bid on projects and expand their network through the Marketplace – a dedicated platform to support freelancers. The business activities that are selected for this type of visa include education, media, technology and design. “You need a CV and qualifications in that particular activity. The free zone will want to know that you're already experienced to set up a type of licence for media, internet, technology and design activities,” Mr Swallow says. The Dubai Multi Commodities Centre free zone issues a FreelanceUAE licence for a year for about Dh4,000 a year. They also provide a one-year FreelanceUAE licence, one-year visa and one-year establishment card for Dh9,136, whereas it costs Dh14,136 to obtain a two-year FreelanceUAE licence, two-year visa and two-year establishment card. Some of the activities permitted under this licence include influencer/content creator, model, interior designer, make-up artist, author, game developer and software developer, among others. “You don't need a CV or a residency to apply for this permit. You can do online selling and professional activities with this licence,” Mr Swallow says. The Ras Al Khaimah Economic Zone offers a Freelance Permit for rates starting from Dh6,100 a year and this is mainly aimed at media and education professionals. The documents required include the applicant’s passport copy, a valid UAE residence visa copy (if applying for a permit without a visa), the sponsor’s no objection certificate (if applying for a permit without a visa), and a portfolio or qualification certificate. This free zone does not offer a freelancer licence. Instead, it provides a renewable trade licence for Dh10,000 a year. It also offers a package of a two-year residency visa and a one-year trade licence for Dh21,000, where the latter can be renewed for Dh14,000 after a year. The company can have up to four shareholders and the trade licence is targeted at media, marketing and consulting businesses. A basic freelancer licence from this free zone costs Dh6,875 for a year without a visa. This visa allows skilled workers and self-employed workers to sponsor themselves for up to five years. To qualify, applicants need a bachelor's degree or specialised diploma and must meet specific income criteria. The income requirement is Dh15,000 per month. “But these requirements keep changing and it is important for the talent to keep a tab on it,” Mr Zainulbhai says. The visa offers five-year residency without the need for an employer to be a sponsor and allows holders to bring first-degree relatives to the country for the duration of their stay. The Golden Visa is another popular option, providing a renewable 10-year residency. This visa comes with significant benefits, such as the ability to sponsor family members and maintain residency even after extended periods abroad. The cost of processing a 10-year golden visa is Dh3,860 through Dubai's General Directorate of Residency and Foreigners Affairs. The visa is granted to investors, entrepreneurs, skilled professionals who earn a monthly salary of more than Dh30,000, exceptional talents, scientists and professionals, outstanding students and graduates, property investors, teachers, humanitarian pioneers and health workers. For remote workers and digital nomads, the Dubai Digital Nomad Visa and UAE Remote Worker Visa offer one-year stays. These visas cater to professionals who are employed outside the UAE or own businesses that allow them to work remotely. Applicants need to demonstrate proof of income or business ownership to qualify, Mr Zainulbhai says. If you set up a fully-fledged company, with some free zones your costs may range between Dh20,000 to Dh60,000, depending on location, number of residency visas required, bank accounts and type of activity you want to do, according to Mr Qazi. Mr Swallow says the costs to procure an SME business licence have also been reduced in the UAE. Dubai and Abu Dhabi have been reducing costs to set up an LLC. “There's a list of activities that don't need an office space for the first year at least. With a freelancer licence, you don't need an office space, but with an LLC, you do. But now, they have brought in some activities that don't need an office space if you only have one or two visas,” he says. “But once you hit three visas, the labour quota comes in and you need an office of about 200 square feet minimum size. If you take out the office cost, it costs about Dh15,000 on average to set up an SME LLC licence for a year. On renewal, the cost is less.” Mr Qazi says it is not always advisable to go for the least expensive business set-up package. It may seem appealing, however it may not include essential services such as visa processing, office space and administrative support. Inadequate support may result in non-compliances with local regulations, which could result in fines, he warns. "Individuals have the option to apply for business licences directly through relevant authorities, such as the DED for mainland licences or specific free zone authorities. This approach can be cost-effective but may require navigating complex procedures and understanding local regulations," he says. "Business set-up consultants offer expertise in local laws, handle documentation and streamline the application process. While this incurs additional costs, it can save time and reduce the risk of errors. Agents can also provide valuable insights into the most suitable licence types and jurisdictions for your business."

UAE freelance licences now as low as Dh1,070 to attract talent

Different emirates and free zones are making it easier for independent professionals to get a work permit