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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.

Last checked 6 Oct 2026·Information, not advice

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
Part-time permit1 yearApplied for by the other employer
Corporate taxOver AED 1mYearly sales before you must register
VATAED 375,000Sales a year before you must register

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

RouteGood forWhat to know
Part-time work permitA second job with another companyThe 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 freelancersAED 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 workAED 7,500 a year
Free zone freelance packagesOther freelance workFor 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.

Don’t trade without a licence. In Dubai, running a business without a licence can lead to a fine of up to AED 100,000 and closure. Regularly selling goods or services, including online, usually needs a licence.

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

  1. Read your contract for rules on outside work
  2. Ask your employer for a no-objection letter
  3. Choose a permit or licence before you take on work

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