Forget Everything You’ve Ever Known About Trade License
DO YOU WISH TO SET UP YOUR OWN BUSINESS?
THE UAE – WITH ITS ENTREPRENEURIAL CULTURE AND RISING ECONOMY – IS UNDOUBTEDLY AN EXCELLENT LOCATION TO ACHIEVE THAT.
BUT YOU DO NEED A PROPER LICENSING, AND FOR THAT YOU HAVE TWO POSSIBILITIES.
YOU MAY OPT FOR A TRADE LICENCE IF YOU WANT TO BUILD UP A FIRM, OR A FREELANCING VISA IF YOU ONLY WANT TO OPERATE AS A SOLO PRACTITIONER.
IN THIS POST, WE’LL LOOK AT FIVE KEY AREAS TO HELP YOU DETERMINE WHICH CHOICE IS BEST FOR YOU.
1. Hiring staff in the future
There comes a moment in the life of every company when the time is perfect to employ. If you have a trade licence, this is a basic procedure. For freelancers, there are a few more procedures necessary.
Trade licence: As a trade licence holder, you may recruit as many workers as your licence will allow. This value will depend on the size of your premises or the free zone in which you conduct business. If your licensing allows for six visas, then you are able to make six hires.
Freelancer: There is an extra step necessary if you intend to employ as a freelancer. The freelancer permit only permits you (the identified individual) to operate in the company. However, many individuals choose for the freelancer permit as a starting point and subsequently transition to a complete trade licensing set-up when they are ready. Get additional information about getting set up as a freelancer.
This is a straightforward procedure and once done you are free to recruit as many staff as you have available visas.
2. EASE OF STARTING UP AND OPERATING YOUR COMPANY
When it comes to establishing up, both alternatives are basic - apply to the Department of Economic Development (DED) for your licence or permission if you desire to trade from the mainland or apply directly to your selected free zone.
When it comes to conducting business, however, there are a few of variations between the set-ups that you should consider.
Trade licence: This is likely the simplest method to conduct business in the UAE. Both the DED and all free zones provide trade permits thus getting started up is not a problem. Equally, the great majority of UAE and foreign firms are happy dealing with enterprises who operate under a trade licence so you should have no issue conducting business in the long run.
Freelancer: Freelancer licenses are not as commonly accessible as trade licences, although several UAE free zones now grant them, including RAKEZ, Dubai Media City, Dubai Internet City, Dubai Design District and Dubai Knowledge Park.
The one thing to consider in terms of conducting business is that some bigger organizations may want a tax registration number (TRN), which is not accessible to freelancers. Furthermore, as a freelancer, it is also not feasible to create a corporate bank account in the UAE.
3. KEEPING PRICES LOW
Cost is always a significant aspect when establishing a company.
When it comes to evaluating the trade license and visa choices, the one that works out the most cost-effective will rely primarily on the size and type of your firm.
In both circumstances, it is feasible to keep expenses low by not taking on personnel or office space.
Trade license: In terms of set-up fees, it’s feasible to form a free zone firm for roughly AED 25,000 to AED 28,000. This is a bit pricier than the freelancing option, yet you will be able to:
Get a TRN number and trade with huge corporates
Hire staff rapidly as your company expands
Open a business bank account
Freelancer: If you are trying to start up a small company on a budget then the freelancing option may fit you better. There are several extremely appealing freelancing permit packages available beginning from only AED 7,500.
However, this is not the last sum you have to pay, since it doesn’t cover residence visa fee, immigration card, insurance and other charges.
On average the total price for a dubai freelance visa ranges from AED 10,000 to AED 20,000, and relies on criteria including:
Whether you require a 1-year permit or you intend to opt for 3-years right instantly
Whether you require a residence visa or you are a stay-at-home mother who only needs an operating permission for yourself to execute your economic activity lawfully in the UAE
4. SPONSORING DEPENDANTS
If you operate a company, you may seek to sponsor your dependants for their visa. You must, nevertheless, possess a valid UAE resident visa yourself.
Trade license: As a company owner, you are entitled to sponsor dependants if you match the wage criterion. If you desire to sponsor a spouse, kid, maid, driver or any other dependent for their visa, the procedure consists of four basic stages: entrance permission, status adjustment, a medical fitness exam, then Emirates ID registration and visa stamping.
Freelancer: If you intend to sponsor dependants as a freelancer, the method is the same as above. It is worth mentioning, however, that it might be challenging to substantiate your revenues as a freelancer. Having said that, if you do have formal paperwork indicating that you fulfill the wage criteria, you should have no difficulties applying for dependants’ visas. Setup your business in Dubai , Business Setup UAE Freezone, We Make it Possible ,Now with 100% Ownership ,Business Setup Dubai Mainland, Get All Business Trade License ,At One Place, First Step is Always hard ,Hire a Contractor, Call Us Now , Staff Outsourcing, Become Entrepreneur , Best Package , Just Don’t Miss it , Get Freelance visa in Dubai, Start Living the Entrepreneurial Life in Dubai , Payroll Outsourcing in Dubai, Get All Now!
5. TRADING WITH THE UAE MAINLAND
UAE free zones enterprises are not authorized to deal directly with the local market on the mainland. However, whether you have a trade licence or are a freelancer, there are a lot of methods to do it indirectly.
Deal licence: The simplest method for a free zone firm to trade with the mainland is through a locally designated distributor who will collect a fee for their services. Alternatively, you may apply to the DED to build a branch office outside of your free zone and trade with the mainland from there.
Freelancer: There is no explicit regulation barring a freelancer from taking on business with mainland firms. However, certain free zones may limit your capacity to do so. The best approach is to consult with a business formation expert who can advise on the optimum set-up to fit your trading requirements.
