Dubai freelance permit or a company licence? Choosing the right route for Indian professionals
A freelance permit is often the simplest way to work in Dubai in your own name — but it limits branding, hiring and activities. How the two routes compare on residence, tax and the India side.
Indian designers, developers, consultants and other professionals moving to Dubai usually choose between two routes: a freelance permit in their own name, or a company licence. Both can lead to UAE residence. The difference shows up later — when you want a brand name, a team or a wider range of clients.
What a freelance permit gives you
- Free zone freelance permits — GoFreelance and RAKEZ permits are issued in your personal name. Dubai Development Authority's GoFreelance covers technology, media, education and design across Dubai Media City, Dubai Internet City, d3 and Dubai Knowledge Park; RAKEZ offers a freelancer permit for media, education, IT and analytical roles; Ajman Free Zone offers a sole professional (freelancer) licence. These free zone routes can lead to a residence visa under the permit.
- The MOHRE freelance work permit is for people who work independently without an employer sponsoring them. MOHRE issues the work permit; residence is a separate application — for example the Green Visa, which lists a MOHRE freelance or self-employment permit among its criteria.
- The Green Visa for freelancers and the self-employed is a renewable five-year residence. The official criteria include a MOHRE freelance permit, at least a bachelor's degree or specialised diploma, and an income or solvency requirement: ICP lists annual freelance income of at least AED 360,000 over the previous two years and proof of stable income or financial solvency, while GDRFA Dubai presents financial solvency as an alternative to the income figure.
Where a freelance permit stops
- No brand name — GoFreelance and RAKEZ permits are in your personal name, not a trade name.
- No staff — GoFreelance states the licence does not allow you to hire or sponsor staff, and RAKEZ states freelancers may not appoint staff or obtain additional visas under the permit.
- Limited activities — you work within the zone's freelance list; RAKEZ allows one activity per permit.
- Banking in your own name — GoFreelance says freelancers may open a personal bank account in their own name; RAKEZ states freelancers are not eligible for a corporate bank account.
When a company licence is the better choice
A free zone company (for example an FZE or FZCO) or a mainland LLC lets you trade under a brand, hire and sponsor staff, add activities and present a corporate entity to larger clients. More than 1,000 commercial and industrial activities can be 100% foreign-owned under the Commercial Companies Law — applied in Dubai from 1 June 2021 — while strategic-impact activities have separate rules. Free zone companies that want to serve mainland customers generally do so through a mainland distributor or branch, or, in Dubai since October 2025, under the Free Zone Mainland Operating Permit, initially for non-regulated activities.
How each route is taxed in the UAE
| Freelancer (natural person) | UAE Corporate Tax applies only once business turnover exceeds AED 1 million in a calendar year (Cabinet Decision No. 49 of 2023); wages, personal investment income and real estate investment income are not counted. A resident individual who crosses the threshold registers by 31 March of the following year. |
| Company | 0% on taxable income up to AED 375,000 and 9% above (Federal Decree-Law No. 47 of 2022; Cabinet Decision No. 116 of 2022). A company incorporated in the UAE on or after 1 March 2024 registers for Corporate Tax within three months of incorporation; late registration carries an AED 10,000 penalty, although the FTA has announced a waiver where the first tax return is filed within seven months of the end of the first tax period. |
| VAT (both) | Registration is mandatory where taxable supplies and imports exceeded AED 375,000 over the previous 12 months (or are expected to within the next 30 days), and voluntary where supplies or taxable expenses exceed AED 187,500. |
The India side of the move
Your Indian tax position follows section 6 of the Income-tax Act, 2025 (in force from 1 April 2026). You are generally resident if you spend 182 days or more in India in the tax year; a shorter test (60 days plus 365 days over the previous four years) can also apply, with 120 days instead of 60 for citizens or persons of Indian origin visiting India whose Indian income exceeds ₹15 lakh (for visitors with Indian income up to ₹15 lakh the shorter test does not apply, so only the 182-day test counts), and it does not apply in the year a citizen leaves India for employment abroad. An Indian citizen with Indian income above ₹15 lakh who is not liable to tax in any other country by reason of residence or domicile can be deemed resident, so this test should be reviewed every year after moving to the UAE. A person resident only under the 120-day rule, or deemed resident, is generally 'not ordinarily resident'.
Under the treaty, an individual is a UAE resident only if present in the UAE for at least 183 days in the calendar year. Where both countries could treat you as resident, the India–UAE tax treaty's tie-breaker looks at your permanent home, then your centre of vital interests, habitual abode and nationality, and finally agreement between the two tax authorities. A UAE Tax Residency Certificate from the Federal Tax Authority supports a treaty claim.
A quick way to decide
- Working alone, in your own name, in a listed field → a free zone freelance permit is usually the simplest start.
- Planning to hire, build a brand or add activities → start with a company licence.
- Degree-qualified, with freelance income of at least AED 360,000 over the past two years (or the required financial solvency), and want self-sponsored residence → look at the MOHRE permit with the Green Visa.
See our Dubai freelance visa page, compare UAE free zone companies, or talk to our team.
Frequently asked questions
Can I hire staff on a Dubai freelance permit?
Not on the main free zone freelance permits. GoFreelance states the licence does not allow you to hire or sponsor staff, and RAKEZ states freelancers may not appoint staff under the permit. If you plan to build a team, a company licence is the usual route.
Do freelancers in Dubai pay Corporate Tax?
Only once business turnover exceeds AED 1 million in a calendar year, under Cabinet Decision No. 49 of 2023. A resident individual who crosses the threshold registers for Corporate Tax by 31 March of the following year.
What income do I need for the UAE Green Visa as a freelancer?
ICP lists annual freelance income of at least AED 360,000 over the previous two years and proof of stable income or financial solvency, alongside a MOHRE freelance permit and at least a bachelor's degree or specialised diploma. GDRFA Dubai presents financial solvency as an alternative to the income figure, so check the issuing authority's current criteria before applying.
Sources: u.ae — Work permits (updated 14 October 2026) and Green visa (updated 28 July 2026); ICP — Green Residence; GDRFA Dubai — Issuing a green residence permit (self-employment); Dubai Development Authority and GoFreelance; RAKEZ — Freelancer Permit; Ajman Free Zone — business licence types; Federal Decree-Law No. 32 of 2021 on Commercial Companies; Dubai Executive Council Resolution No. 11 of 2025; Federal Decree-Law No. 47 of 2022; Cabinet Decision No. 49 of 2023; Cabinet Decision No. 116 of 2022; Cabinet Decision No. 75 of 2023, as amended by Cabinet Decision No. 10 of 2024; FTA Decision No. 3 of 2024; Federal Decree-Law No. 8 of 2017 on VAT, as amended, and its Executive Regulation (Cabinet Decision No. 52 of 2017, as amended); Income-tax Act, 2025 (section 6); India–UAE DTAA (Article 4).