In this article, we'll help you understand the difference between a Freelance Permit and a Freezone Company in Dubai. We'll start by explaining what a Freelance Permit is, who it's for, and how much it costs. Then, we'll dive into what a Freezone Company is and how it compares. By the end, you'll know which option might be better for your needs, whether you're a freelancer or looking to start a business in Dubai.
What is a Freelance Permit?
A Freelance Permit is a special license introduced by the UAE government to support freelancers in Dubai, especially those already on a dependent visa.
If you’re a resident of Dubai and want to work legally, the Freelance Permit is a good choice. It allows you to operate your business in the UAE under your own name, making it a Sole Professional License. This means you can work as an individual without creating a separate company.
If you’re not already a UAE resident but want to work as a freelancer and get residency, you can still apply for this permit. The Freelance Permit itself costs around AED 7,500. However, it’s limited to specific industries like media, IT, marketing, education, and consultancy.
Once you have the Freelance Permit, you’ll need to get an Establishment Card, which costs about AED 2,000. After that, you can apply for a visa, which will cost around AED 4,500. Altogether, if you’re not already a resident, you’re looking at about AED 14,000 for the permit and visa.
What is a Freezone Company?
A Freezone is a designated area in the UAE where businesses can operate with certain benefits, like full foreign ownership and tax exemptions. However, Freezone companies can’t sell physical products directly to consumers in the UAE mainland. Instead, you can partner with a mainland company to distribute your products.
Setting up a Freezone company with a visa will cost around AED 12,000, but it offers more flexibility. For example, if you run a service-based business like IT, marketing, or consultancy, you can work with mainland companies and UAE consumers without many restrictions.
Which is Better?
At CSPzone, we generally recommend a Freezone license if you want to get a visa and run a service-based business in the UAE.
While a Freelance Permit might seem cheaper at first, it becomes more expensive if you need a visa too. Plus, sponsoring your family is easier with a Freezone license.
A word of caution:
Some companies offer what they call a "freelance visa," but it’s actually an employment visa, which usually costs between AED 6,000 to AED 7,000 depending on the emirate. They might give you a No Objection Certificate (NOC) saying you can work anywhere in the UAE, but this is not a real freelance permit and could get you into trouble. It’s best to avoid these options.
In summary, if you’re planning to work in Dubai and need a visa, a Freezone license is usually the better choice.
We at CSPzone have guided thousands of businesses from their initial setup to successful operations in Dubai. If you need help navigating the process, we're here to assist you every step of the way. Reach out to us, and let's get your business journey started on the right foot.
