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Trade License Vs Freelance Permit : Who is the Winner?

Are you also confused about what is the best option for you? Trade license or Freelance permit in Dubai? To make an informed decision, you can find some useful information about the business license and independent permission in this article that will help you choose the right legal structure for your business.

Setting up a Business in Dubai

For starting a business in Dubai, you will need a valid business license or you can become a freelancer if you apply for a free zone work permit and a residence visa (if not sponsored by your spouse or parent) of a UAE free zone. Self-employment permission grants you as the only professional and allows you to start your business by name instead of your brand. Free zones generally also provide shared office space and a shared post office box.

Free zones that currently offer an independent permit include Dubai Media City, Dubai Studio City, Dubai Production City, Dubai Knowledge Park, Dubai Design District, Abu Dhabi’s twofour54, and Fujairah Creative City. Keep in mind that your occupation would have to be correlated with the activity of the free zone.

Here is the Advice of Our Best Experts:

If you want to remain a single-person business, then a freelance permit is the optimal option for you. But if you want to grow your business and hire more employees in the future to carry out business operations, you must apply for a trade license.

All about Doing Freelance Business in Dubai

When a freelancer wants to grow a business, he or she will have to cancel the registration of the freelance permit and upgrade it to a trade license. But then it will be easier to obtain a commercial license from the beginning.

If you want to work with large companies or with government contracts, the commercial license is the best option for you, as it will give you more credibility. In addition, if you have corporate clients, they may ask you to provide the TRN number (tax registration number) issued by the Federal Tax Authority of TLC. TRN is not issued to freelancers. Therefore, the work of a freelancer may limit to small and medium enterprises.

Cost of Freelance Permit 

If you want to keep your costs low, go for a freelance permit in Dubai. You do not have to pay salaries to employees, and it is not necessary to rent an office space, since the free areas of Dubai allow you to rent a workstation that you can use for your business.

Ease of Trading in Dubai

In the case of the free zone commercial setup, you cannot trade directly with the emirates UAE unless the company designates a local service agent. The free zone company that has a trade license in Dubai can also open a branch outside the free zone after obtaining approval and license from the DED. It is quite complicated for an independent professional to leave the free zone. Because free zones tend to be sector-specific. Independent permits are available for a limited list of professions related to media, education, and fashion. In some free zones, such as in Dubai Design District, you are restricted to work only in certain free zones.

Independent Work Permit in Dubai

When applying for an independent work permit, you should keep in mind that managing an independent business can be very difficult, especially during the initial phases. It takes time to create new contacts, customers, and income. Profits are also variable in independent businesses. You can sponsor your dependents whether you have a trade license (business license) or an independent work permit.

There are also benefits of independent work. As mentioned earlier, you can curb your costs and ensure your initial growth. Nor will you be asked to submit formal accounts or be subject to audit. After you have established and started to make a profit, you can proceed to obtain the Dubai commercial license to ensure that growth does not stop by the limits of independent work. Business Link UAE is always there for your assistance and guidance regarding all queries about trade licenses and freelance permits in UAE.

Find Quick Answer for your Questions

  • Trade License and Freelancer License Benefits?
  • What is the Documentation Process?
  • Can I get a freelance work permit in Dubai?
  • No Days required for getting a License?
  • How can I register online for a License?

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