Becoming self-employed in Dubai

Dubai is not only an architectural marvel, but also a paradise for entrepreneurs. One of the biggest advantages Dubai offers is the significant tax benefits. Many entrepreneurs are attracted by the fact that there are no direct taxes in Dubai, such as income tax or VAT on most services. This creates a financially attractive environment for business people and investors.

Dubai offers an impressive number of free zones, often referred to as "freezones". In these specialised zones, companies can benefit from significant advantages, including the right to 100% foreign corporate ownership and full repatriation of capital and earnings. These free trade zones are targeted at different business segments, offering customised solutions for various business areas and thus making market entry much easier. For companies intending to operate within the emirate, setting up a mainland company is often the preferred choice. More on this later.

Why Dubai is so attractive for the self-employed

Dubai has established itself as a magnet for entrepreneurs and investors in recent years, and for good reason. The Economic growth of the city is impressive and offers a wealth of opportunities. As a central trading partner for many countries, Dubai opens doors to numerous business opportunities. The strategic location The city's economic development has made it a hub of international trade.

In addition to trade, Dubai is experiencing a steady tourism boom. The luxurious hotels, impressive skyscrapers and cultural attractions attract millions of tourists every year. This influx of visitors creates a dynamic market landscape that is attractive for many business models.

Not forgetting Dubai's status as a major financial centre. With a steadily growing number of banks and financial institutions, the city offers a robust platform for financial services and investments.

But what makes Dubai particularly inviting for entrepreneurs? The answer lies in its business-friendly policy. The tax-free zones are a prime example of where companies can benefit from considerable tax advantages can benefit. The process of Company formation in Dubai is efficient and uncomplicated, which makes it much easier to get started. In addition, Dubai has signed double taxation avoidance agreements with many countries, making it easier to do business internationally. Finally, in a liberal market like Dubai, there are minimal restrictions on foreign investment, making the city an ideal place for global entrepreneurs.

Requirements for self-employment in Dubai

If you want to set up your own business in Dubai, there are a few requirements that need to be met.

1. visa and residence permit

Obtaining the right visa and residence permit is a crucial step in starting your own business in Dubai. Dubai offers various visa options for entrepreneurs, including business and investor visas. The business visa allows you to conduct business in Dubai and reside in the city, while the investor visa is specifically for those looking to invest in the emirate's economy. It is of utmost importance to choose the right visa to ensure that you fulfil all legal requirements and can run your business smoothly.

2. company licence

Before you can start your business in Dubai, you will need a business licence. These licences are categorised differently depending on the type of business you want to operate. There are trade licences for importing and exporting goods, industrial licences for manufacturing and service licences for various service offerings. The business registration process in Dubai is efficiently designed to make it easy for entrepreneurs to get started. However, it is important to have all the required documents ready and ensure that you apply for the right licence for your business model.

If you want to find out which licence is right for you, read our article on the Company formation in Dubai.

Understanding the difference between freelancers and the self-employed

For anyone considering a self-employed career in Dubai, it is essential to understand the differences between a freelancer and a self-employed person. Although both paths allow for independent work, there are important subtleties that distinguish them.

Freelancer in Dubai

Freelancers offer their services on a project basis and work autonomously without being bound by traditional employment contracts. They often have specialised skills in areas such as copywriting, design, programming, marketing or consulting. Their services are usually offered to different clients at the same time, allowing for a variety of projects. In the United Arab Emirates, the demand for freelancers has increased due to the growing economy and the need for specialised expertise.

Self-employed in Dubai:

In contrast, independent entrepreneurs are the owners and operators of their own businesses. They have full control and are responsible for the success or failure of their business. Self-employed individuals often build a business structure that goes beyond their individual endeavours, including hiring employees and managing various administrative tasks. The government's support and encouragement of small and medium-sized enterprises (SMEs) contributes to Dubai's dynamic entrepreneurial landscape.

It's important to note that while freelancers are always self-employed, not all self-employed individuals are freelance freelancers. Self-employment encompasses a wider range of businesses, including start-ups, consultancies, retail businesses and more.

Types of company formation

There are two types of company formation in Dubai. Setting up a company in the free zone or setting up a mainland company. Depending on the business and company objective, these offer different advantages and require different prerequisites.

Freezone company formation

The establishment of a company in one of the VAE Freezones is easier than a mainland company, mainly because of the simple processes and excellent infrastructure. Key benefits include VAT exemption, low ongoing operating costs, and the ability to transfer 100% of profits and ownership with ease. In addition, high-quality storage facilities are available and there are numerous business activities that investors can choose from. For most Freelancers or marketing agenciesit is the better choice to become self-employed with a free zone company.

Mainland company foundation

The United Arab Emirates' mainland company formation offers a dynamic business environment ranging from multinationals to SMEs and is particularly suitable for retail and hospitality. Recently, it has become possible to set up companies without a local sponsor for most business categories. This was not the case a few years ago. There are various forms of companies such as the Limited Liability Company (LLC), the Civil Work Company, and branches or representative offices of foreign companies, all of which offer specific advantages, such as the possibility of owning 100% of the company shares.

Overall, both the Freezones and the Mainland option of the UAE offer attractive options for setting up a business, each with their own advantages and opportunities.

Let us advise you free of charge. You can find more information in the article Company formation in Dubai.