3 Things to Consider Before Freelancing in the UAE

by Zaara 11, Mar 2022

3 Things to Consider Before Freelancing in the UAE

Have you ever thought of becoming a freelancer in the UAE? As long as you hold a licence or a permit, working as a freelancer is legal in the UAE. In the beginning, many entrepreneurs in the Emirates freelance and then upgrade to a company as they get more developed.

Everyone craves freedom, whether it’s freedom from the corporate structure or release from a strict work schedule that you’ve been so used to all your career life.

Once you decide to quit your desk job, you will find that weighing down your decisions is an absolute necessity for making the correct decision on which path to take. In the world of freelancing, you can either jumpstart a new chapter or take a chance and start your own business. The choice is yours.

Freelancing is undoubtedly not for everyone. It's overwhelming and initially challenging, but you'll eventually get on board and start calling customers with the right skills, zeal, dedication, and discipline. You can choose several choices if you believe you have what it takes to become one.

Freelancing is not a new phenomenon in the UAE. Freelancers from all over the world are primarily drawn to the nation because of its friendly regulations. A freelance license is recently introduced, enabling freelancers in the media, technology, and education sectors to legally sell their particular services in the UAE.

One is by obtaining a permit from a freelancer. This permit permits people in the media, technology and education sectors to legally sell unique services in the UAE. An individual is not allowed to get a Tax Identification Number with this special permit, which could be requested by some of your prospective customers and maybe a hassle for you in the future. Your next best choice is to get a trade license and set up your own company as a freelancer if your skills or career do not come under these sectors, and you think getting a TRN is essential for you.

One of the many other options is to develop yourself as a freelancer under the Ajman Free Zone license. In the UAE, more and more free zones support freelancers, and one of them is the Ajman Free Zone. A service license is obtained to provide services such as marketing strategy, IT consulting, web design consultancy, and many more.

At this point, the benefits of getting the appropriate freelance license to run your own business legally are far more valuable and profitable. So, when do you need a freelance license?

Here are three things to consider before making a decision:

1. Business Activity

First, you need to know that you are limited to particular industries, such as education, technology, and media, with a freelance permit. If these sectors do not come under your talent, expertise, or career, your only best choice is to get a business license and set up your own company. The free zone or the Dubai Department of Economic Development (DED) provides a broad range of business activities that cater to almost all sectors. To ensure the success of your business setup, you just have to collaborate with company forming specialists.

Make sure that you are not confined to unique business operations. Ajman Free Zone provides a wide range of business activities that appeal to all major sectors. To ensure you get all the right stuff, get professional advice from one of Commitbiz's business setup experts.

2. Scalability

Scalability means your ability, without any legal repercussions, to enhance the operation of your service. The only way to do this is to set up a company if your intention in the future is to create a brand that will be recognised for the services you provide. Scalability also applies to employing individuals to work for you, which you can do if you have a business license. Scaling up and increasing your reputation by starting up a business is far more realistic than when you're competing with other freelancers.

Ensure that as you expand, you are not limited to scaling up your business the freedom to increase your service’s operation without any legal consequences. In the future, you'd need to recruit employees, which you can only do if you have a business license.

3. Flexibility

For a business to grow at an unprecedented rate, you must have the chance to offer your services to the entire UAE marketplace. It is only possible if you have at your disposal the appropriate commercial license. In a nutshell, with the capacity to do business everywhere and at any time, you can attract local and international clients. When you have already developed a name for yourself, a freelancer permit can be a significant limiting factor, but can not reach a broader market.

Make sure that you do not restrict yourself to extending your business around the UAE. You have the flexibility to do business anywhere with the Ajman Free Zone license, and it helps you to attract both local and foreign clients. An Ajman Free Zone license of AED 6,000* with Commitbiz is used.

All these focus points pertain to your long-term objectives. If your start-up in the UAE's competitive freelance economy or entrepreneurial arena, the choice categorically aligns with your goals is worth considering. The UAE is a booming region for both of them. But there will be a time when wiser choices such as having your trade license in the UAE to operate a company are a more fitting path.

In the UAE, setting up as a freelancer comes with a price. You have to make sure you've invested the right amount of money in keeping up before you're up and running. Excellent preparation, robust consumer analysis, the right skills, and business awareness will prepare you to succeed in a short period.

Starting a business will speed up your development to create respect for your name and your brand. It is not to say that you are limited to how much you can do as a self-made freelancer, but rather a chance to draw on the network you have developed through freelancing years. The best way to profit from this network is to take a step forward, get the right license, and launch your company.

Freelancing, provided the liberty it gives the person, can be rewarding. It is excellent to be your boss but demanding at the same time. If you think you are highly concentrated, self-motivated and well-driven, then what are you waiting for?

It is where Commitbiz can assist you in the Free Zone or Dubai Mainland with various licensing choices, depending on what suits your business strategy most cost-effectively. Start enjoying the liberty of becoming an entrepreneur and a freelancer. Take a step forward, get the right license, and start your very own company.

The experts in the area are our Company Setup Advisors at Commitbiz and have assisted many startups in their UAE projects. Today, talk to one of the companies set up experts from Commitbiz and learn more about your licensing choices. What's more, we also have services that can help you further grow your business. Contact us today, even if it's for a piece of friendly advice.

FAQs

1. What are the three things to consider before obtaining a freelancing license in the UAE?

The three things are as follows:

  • Decide your business activity

  • Scalability

  • Flexibility

2. For which sectors does the UAE freelance license applicable?

The sectors are technology, media, and education.

3. What is prohibited for an individual after getting a freelance permit in the Emirates?

Obtaining a Tax Identification Number is not allowed for an individual in this case.

4. What is the benefit of establishing yourself as a freelancer in Ajman Free Zone?

You can get a service license under which IT consulting, marketing strategy, web design consultancy, etc., services are provided.

5. Who can apply for the license provided in the free zone of Ajman for UAE freelancing?

Professionals can apply for this license which includes audio technicians, chief editors, artists, choreographers, announcers, art critics, animators, event managers, actors, etc.

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