Dubai's economy, with its competitive combination of location, regulatory, industry, and environmental advantages, has positioned it not only as the UAE's and region's business center, but also as one of the world's most dynamic cities.
If you're freelancing, working as a contractor, or running your own company, being self-employed in the UAE opens up a world of possibilities, including lucrative business offers and funding to help you get started.
It does, however, come with certain conditions that should not be ignored. Here are some helpful hints for self-employed people in the United Arab Emirates who want to make the most of their opportunities.
Guidelines for the Self-Employed in United Arab Emirates
Following are the hints that any self-employed can follow if they want to boost to their business.
Recognize the Company's Choices
The UAE helps entrepreneurs to do business in a variety of ways, including:
- Sole Proprietorship
- Limited Liability Company (LLC)
- Freelancers
- Free Zone Company
- Foreign Company Branch
- Civil Company
As a self-employed individual in the UAE, the best way to get started is as a freelancer, but you can also set up a sole proprietorship or a civil company, all of which allow 100 percent foreign ownership.
A sole proprietorship can only have one member, while a civil corporation can have two or more.
A commercial or industrial business might also be an option, but if you're an expat, you'll need a local partner, who could be a UAE national or a corporation.
It is recommended that all self-employed employees have professional indemnity insurance in place to cover them, regardless of their business structure. A costly litigation is the last thing you need when you're just starting out.
Make certain you have the correct license
Licenses are divided into two types: mainland licenses, which enable you to trade freely both within and outside the country but require you to find a local partner; and free zone licenses, which include lucrative tax benefits and 100% ownership but only allow you to trade within your free zone jurisdiction.
If you're coming to the UAE from another country, you'll need a visa sponsored by the jurisdiction where you'll be working, as well as a medical check and health insurance.
Do you work as a freelancer? Consider the concept of "free zones."
If you choose to work as a freelancer, there are a few free zones where you can apply for a freelance permit and visa. Dubai Internet City, Dubai Media City, Dubai Knowledge Park, Fujairah Creative City Free Zone, Ajman Free Zone, and Ras Al Khaimah Economic Free Zone are among the free zones available.
This is accomplished by sending an application form to the appropriate governing body, along with other documentation such as a copy of your passport, a passport-size photo, a curriculum vitae (CV), and, if necessary, a No Objection Certificate from your sponsor.
Create a foundation
For the self-employed, there are plenty of offices to rent in some of the more business-oriented emirates and regions, or you might be able to operate from a client's office. If you're a freelancer, you may want to consider renting a co-working room, which you typically pay for on a monthly basis.
Recognize how the tax system operates
The free zones in the UAE offer a variety of tax benefits, including zero corporate and personal tax. Import and export tariffs, as well as currency limits, are not applicable to you. Furthermore, you will repatriate 100% of your earnings.
However, after the implementation of VAT in the UAE, if you receive more than AED 375,000, you must register. VAT registration is not needed if your annual income is between AED 187,500 and AED 375,000. To show this, make sure you keep all receipts and documents up to date.
Recognize the business landscape and make connections
Oil and gas, industrial, IT, construction, and finance are some of the UAE's most important industries. However, with several multinational corporations based in the UAE, there are numerous opportunities for those interested in working in tourism, media, architecture, and FinTech.
If you're new to the UAE, it's a good idea to learn as much as you can about the business community. Personal relationships are crucial when attending trade shows or reaching out to prospective customers. Prepare to talk about personal matters before business, and keep in mind that exchanging gifts when meeting new clients is common.
Being self-employed in the UAE will open doors to new markets and customers, as well as new sources of funding to help you grow your business.
Do a thorough Research for the Business Loan you will need
A Business Loan at the lowest rate from well-known UAE Banks through Dhanguard is a cost-effective way to fund your business if you are a business owner looking for additional capital to grow your business, refinance your business, restructure your balance sheet, or repay member or shareholder loans.With flexible business loan terms, we give UAE business owners the power to finance and scale up their businesses, allowing small and large business owners to make effective and profitable decisions.
Bank Account Opening- Business Account
Any company must have a system in place to manage its finances. The business account is used to keep track of the money owed to creditors, the cash balance, and the funds owed to the company, as well as the payroll owed to the employees.
Since they are specifically for companies, company accounts vary from personal or private bank accounts. Following the acquisition of your business license, you must open a bank account in order to effectively manage your company's financial transactions.
We will take care of the paperwork for you and guide you through every step of the process of opening a bank account.
Group Medical Insurance
If you own a company but don't have any employees, you might be unaware of the health care options available to you. There are more choices than ever before, and some of them are customizable, making it simple to find exactly what you want. Employees appreciate employers who are concerned about their welfare and actively work to ensure their well-being. As a result, they are more devoted and creative. It's a win-win situation.