Can I freelance or start a side business?
Many people in the UAE run a side business or take on freelance work. It’s allowed, but only with the right permit or licence. Here’s what you need before you start.
In 30 seconds
- You can’t work for anyone other than your sponsor without a permit, so get the paperwork first
- Most routes need your employer’s written permission, called a no-objection letter (NOC)
- A side business with sales over AED 1m a year must register for UAE corporate tax
Check your contract first
UAE labour law says you mustn’t work for others except as the law allows, and you must keep your employer’s information confidential. Read your contract for any rules on outside work or competing with your employer. A non-compete clause can last at most 2 years after your job ends, and must be limited to what protects the employer’s business.
Your options
| Route | Good for | What to know |
|---|---|---|
| Part-time work permit | A second job with another company | The other company applies through MOHRE. MOHRE asks for a no-objection letter from your current employer. Valid for 1 year |
| Freelancer licence (Dubai Development Authority) | Professional freelancers | AED 7,500 a year plus small fees. If you’re on a residence visa, you sign a self-declaration form |
| GoFreelance (TECOM) | Tech, media, education and design work | AED 7,500 a year |
| Free zone freelance packages | Other freelance work | For example, DMCC listed packages from about AED 4,000 a year in December 2024. Check current prices |
Fees checked 6 Oct 2026: they change Ask each authority whether it needs your employer’s NOC.
UAE tax on your side business
- Your salary, personal investments and rent from property you own as an individual aren’t counted
- If your business sales go over AED 1m in a calendar year, register for corporate tax by 31 March the following year. Late registration can mean a AED 10,000 penalty
- Corporate tax is 0% on taxable income up to AED 375,000 and 9% above that
- Small Business Relief lets businesses with revenue up to AED 3m be treated as having no taxable income, for tax periods ending by 31 December 2029. You still need to register and file
- VAT registration is required once your sales go over AED 375,000 in 12 months, and you can choose to register from AED 187,500
UK tax
If you’re not UK resident, you don’t pay UK tax on foreign income. But work you do on trips to the UK counts towards the statutory residence test: a day with more than 3 hours of work in the UK is a UK workday. See Do I still pay UK tax?
Tax rules depend on your own situation, so speak to a qualified tax adviser before you start.
What to do next
- Read your contract for rules on outside work
- Ask your employer for a no-objection letter
- Choose a permit or licence before you take on work
Keep going
- Federal Decree-Law 33 of 2021 (labour law)
- Cabinet Resolution 1 of 2022 (labour law regulations)
- MOHRE: part-time work permit
- Dubai Development Authority: freelancer licence
- GoFreelance (TECOM)
- DMCC: freelancing in Dubai (Dec 2024)
- Dubai Law 13 of 2011 (economic activities)
- Cabinet Decision 49 of 2023 (natural persons)
- FTA: natural persons must register by 31 March
- FTA: late registration penalty
- Ministry of Finance: corporate tax threshold
- Ministry of Finance: Small Business Relief to 2029
- FTA: VAT registration
- GOV.UK: tax on foreign income
- HMRC: statutory residence test (RDR3)