Who doesn’t want a work routine that suits their needs? To have a more flexible work routine, people all around the globe are now opting for freelancing, especially in the UAE.
The UAE is the favourite destination for freelancers due to its business opportunities. However, some rules regarding it need to be understood.
In this blog, we will uncover the hot topic of freelancing in the UAE: the complete guide.
- UAE – Heaven for Freelancers
- Laws and Orders for UAE Freelancers
- Domains of Freelancing in the UAE
- How to Start a Freelancing Business
- Benefits for UAE Freelancers
- Financial Management for UAE Freelancers
- FAQs
UAE – Heaven for Freelancers
The United Arab Emirates is a top spot for freelancers due to its booming economy and favourable tax system. The Emirates attracts international investors and businesses, opening doors to numerous freelance job opportunities.
Moreover, the UAE’s litigation system, business setup, and financial management make it seamless to execute your freelancing. The zero personal income tax makes it an even more attractive destination for freelancers.
Once you start freelancing, you can also apply for a freelance visa or permit in the UAE.
Laws and Orders for UAE Freelancers
As a freelancer in the UAE, you must understand their law and order completely. For your ease, we have listed the key regulations for the UAE freelancers:
1. UAE Freelance Visa or Permit
The UAE’s new visa policy is attracting freelancers worldwide for better opportunities. The Emirates allows them to apply for a special visa and permits to explore the UAE’s freelance market.
Freelancers in the UAE are also eligible for a Green Visa for five years. The requirements for a Green Visa are simple:
- Submit freelance/self-employment permit from MOHRE.
- Show your bachelor’s degree or any specialised diploma.
- Give evidence of your annual income (minimum AED 360,000) from self-employment for the last two years.
There are different requirements for each emirate freelance visa and permit. Let’s discuss them all!
In Dubai
The UAE’s visa policies in Dubai have simplified freelance work permit applications, with free zones, including Knowledge Village, Internet City and Media City.
- The cost of a Freelance Visa in Dubai is AED 20,000 (approximately)
- Cost of Freelance Permit: AED 7,500
In Sharjah
The SHAMS Free Zone and The Hamriyah Free Zone in Sharjah offer a low-cost freelance visa for media professionals. Also, it allows a single shareholder to be eligible for one residency visa.
In Abu Dhabi
Abu Dhabi provides a unique freelance visa opportunity for rapid growth. It is an ideal location for freelancers as it is the global hub of technology, media, and finance. Freelancers can start their operations in free zones and freehold areas. You can learn the differences between the free zone and freehold areas.
Cost of Freelance Visa: AED 790 + AED 100 for each additional activity
Requirement
- MOHRE freelance work permit
- Proof of annual income for the last two years (AED 360,000).
- Or financial solvency proof
In Ajman
Ajman Free Zone offers a low-cost self-employed visa in the UAE, allowing one licence to sponsor two residence visas. Additionally, by sharing the licence costs with a friend, you can cover yourselves for three years.
Also, due to reasonable business activities, you can swiftly find a suitable project that matches your experience and skill levels.
Cost of Freelance Package: AED 6000
In Umm Al Quwain
The UAQ Free Zone in the UAE offers a cost-effective and easy-to-use option for freelancers, with affordable setup costs, visa fees and annual renewals.
In addition, it offers various freelance activities for any profession and requires no external approvals or educational qualifications for self-employed licences.
Documents
- Filled application Form
- Updated CV
- Recent passport-size photo
- Passport (copy)
In Ras Al Khaimah
If you reside or work in the RAK and want a freelance work permit, the RAKEZ self-employed visa is a suitable option. You can get a licence for various freelancing activities in RAK based on your education.
Cost of Freelance Permit: AED 6,100
Documents
- Passport (copy)
- Valid UAE Residence Visa (copy) (for only permit without a visa)
- No Objection Certificate from your sponsor (for only permit without a visa)
- Portfolio/Samples of your work or certifications
In Fujairah
The Creative City Free Zone in Fujairah offers affordable freelance visa packages that are valid in the UAE. These freelance visa packages serve as a substitute for traditional freelance visa options.
Furthermore, it is essential to note that the “freelancer company” package is not a freelancer licence. These packages are not meant to be confused with freelancer licences but with regular commercial company solutions.
Cost of freelancer company licence: AED 30,000
Documents
- Passport copies of the owners and person in charge of the newly formed company
- Owner’s bank statement/reference letter and utility bill
- CV
- Filled application form
2. Business Categories
Freelancers in the UAE can choose from sole proprietorship, limited liability company (LLC), or free zone company. Each has its advantages and disadvantages. The sole proprietorships are cheaper but lack limited liability protection, and LLCs require local partners.
3. Taxations
The UAE’s favourable tax system attracts freelancers due to its absence of personal income tax. However, you must comply with tax regulations, including annual tax returns and accurate accounting records.
Domains of Freelancing in the UAE
As a freelancer, you have a wide range of online jobs worldwide. Freelancing jobs are the gateway to the global job market, enabling you to work with top-notch companies offering high pay. There are several categories for freelancing that involve writing and other digital skills. These include:
1. Content Writing/Copywriting/Translating
Do you enjoy writing? If yes, then freelance content writing is for you. Such projects help you enhance your writing skills while utilising your language-related abilities. You can also choose to be a copywriter and look for opportunities.
Additionally, if you are good with languages, you are a good fit for translation and interpretation jobs. All these freelancing jobs help you polish your writing skills as well as build your strong work profile.
2. Digital Marketing
Dubai offers opportunities for freelance digital marketers to enhance their skills and experience in social media marketing.
With online businesses gaining more popularity, digital marketing jobs are becoming more easily accessible.
3. Graphic Designing
For passionate graphic designers, this freelancing job involves creating digital images to communicate messages. You can portray characters or promote brands using various tools, software, and colour psychology.
Your art can double the message’s impact while reaching millions of consumers through campaigns.
4. Online Tutoring
Teaching is a gratifying activity that allows you to share your knowledge. Teachers and tutors have a great scope for online lectures and tuition in the UAE.
The UAE government’s education initiatives to boost literacy rates have increased demand for teachers. This presents a golden opportunity for freelancers to provide online education.
These opportunities include tutoring services, language teaching, business skills and education and career counselling.
5. Web Development
Web development and designing skills can lead you to a high income as a freelance web designer in the UAE. With your skills, you can help small businesses and startups enhance their online presence with expertise in various e-commerce platforms.
In addition, you can get opportunities to create multiple online business portals, payment gateway integration, online shopping functionality, and more.
How to Start a Freelancing Business
Once you understand the UAE’s legal framework, decide what freelancing business you want to start. After that, follow the steps below to set up a freelance business in the UAE.
1. Name Your Business
Choose a unique, unregistered company name to start your freelancing setup. Visit the Department of Economic Development (DED) website to check if your chosen company name is already registered or not.
2. Make a Business Strategy
A clear business plan is essential for starting a new business. Outlining objectives, target markets, marketing strategies, and financial projections gives you insights into the business’s trajectory.
Not only that, a business plan is crucial for funding, client attraction, and efficient management. A well-crafted plan can be created using online resources or a business consultant.
3. Open Your Bank Account
A freelance business owner must establish a bank account to manage finances and receive payments effectively. This requires a business licence, address proof, and identification documents.
Also, you may compare different banks’ services and fees to find the best fit for your needs.
4. Get Your Residency Visa
A residency visa is required to legally reside and work in the UAE, either through self-sponsorship or through a sponsor. In addition, applicants must provide a business or trade licence, tenancy agreement, and other necessary documents. Complying with visa regulations is crucial to avoid legal issues.
Benefits for UAE Freelancers
Freelancers and self-employees in the UAE have numerous benefits, including:
Make Connections
Freelancing in the UAE provides professionals with diverse networking opportunities. Also, it enhances your reputation, skills, and business growth by connecting with multinational clients, collaborators, and mentors.
International Clients
The UAE’s strategic location and business-friendly environment makes it an attractive destination for companies expanding in the Middle East. Whereas, its diverse freelancer market attracts clients from various countries and industries.
Tax-Free Income
The exemptions from corporate tax, VAT, and customs duty are a catch for UAE freelancers. Since there is no personal income tax, it allows freelancers to keep more of their earnings.
Stress-Free Work Life
Freelancing in the UAE provides a stress-free work life than traditional employment. You can set your feasible working hours, choose projects, and work remotely. In the UAE, balancing work life with personal life is not difficult for freelancers.
Financial Management for UAE Freelancers
Managing your finances in any business is crucial. Likewise, you must maintain a proper financial record for freelancing in the UAE. Following are the ways of financial management for the UAE freelancers:
Sending Invoices and Making Payments
Invoicing and payment are vital in freelancing to manage finances. Accurate, timely invoices and compliance with legal and contractual requirements are essential.
Furthermore, clear payment terms and timely payment follow-ups are also crucial for freelancers. Additionally, online invoicing tools or a payment gateway provider streamline these processes.
Practice Budgeting
A well-structured budget aids in managing cash flow, tracking expenses, and planning for the future. Moreover, these budgeting methods are facilitated by online tools or professional accountant assistance.
Keeping Records
In the UAE, freelancers must maintain accurate financial records, including income statements, balance sheets, and cash flow statements.
They must comply with IFRS and UAE taxation and ensure proper accounting and record-keeping management. You can do that using software or with the help of an accountant.
FAQs
The 2024 freelance employment visa in Dubai costs AED 5,000 for two years. Additional charges for the Establishment Card are applied for the AED 2,000.
The average monthly salary for a Freelancer in the UAE is AED 6,600. They also get an additional cash compensation of AED 1,600, ranging from AED 1,000 to AED 2,200.
The Freelance licence allows a freelance professional to operate under their birth name. Such freelancers are identified as sole practitioners rather than a brand name.
Summing up, you will have unlimited benefits and opportunities as a freelancer in the UAE. So, start freelancing today to earn a handsome amount, which will lead to a successful future.
Also, you can check out the job-seeker visa in the UAE and visit the country for a job. If you have applied for visa, you can learn how to check the visa status. Furthermore, you can learn about the UAE Golden Visa for investors, freelancers or talented individuals.
If you are planning to move to the UAE to generate hassle-free income, visit Property Finder blogs now!
