Consider working as a freelancer in Dubai. You are not by yourself. Nearly 90% of office employees want to leave their 9 to 5 jobs and launch their own freelance businesses. The demand for independent contractors is growing as the Dubai economy bounces back from the effects of COVID-19.
Companies in Dubai are constantly looking for independent contractors for various exciting projects. Freelancers in Dubai are now the underutilized resource companies want to use for their diverse skill sets to contend globally. Additionally, companies adore the concept of reducing the expenses typically connected with a full-time employee.
Five things to consider before you begin freelancing
It's challenging to start a freelance company from scratch. Unless you already have a clientele that you can approach to work as a freelancer. Until you establish your reputation, it might be a wise choice to freelance while also putting in a full-time effort at reliable employment.
You might also want to think about the following:
Keep your expectations in check
You might not start making as much money as you did at your full-time office work. The best strategy for surviving while expanding your freelance company is to stick to a budget.
Be persistent and patient
Freelancing is a long-term obligation rather than a one-time task. To find employment, continue marketing your skills and building relationships with business contacts.
It is essential for a freelancer because you must submit your work by the deadline to leave a positive first impression.
Get your freelancer permit if you want to legally offer your skills to companies. You should also closely read the provisions in your freelance license because some licenses only permit you to freelance in specific locations, such as free zones.
Before beginning any job, you should draft a freelancer contract you submit to the business. It should contain deadlines, thorough work descriptions, and payment information. This provides you with a legal position in the event of conflicts.
Tax Implications as a Freelancer
You don't pay personal or corporate taxes if you operate as a freelancer in Dubai. VAT is the only fee you might be required to pay.
If your annual income surpasses Dhs. 375,000, you must register for VAT. You can apply for VAT if your annual income is between Dhs 187,500 and Dhs 375,000. Anyone making less than these amounts is exempt from registering.
If you operate a freelance company in the area, you might also be responsible for paying corporate taxes like:
Up to Dhs 375,000 in earnings are exempt from company tax.
A 9% company tax is applied to amounts above this.
You won't have to pay taxes in 2022 if you start your freelance company now. The program doesn't begin until after June 2023.
Types of Freelance Licenses That Are Available
Nearly all Emirates in Dubai give the freelance license; however, Dubai is where most people choose to live. In addition to more networking and client-building possibilities, this location is convenient. One of the greatest benefits for freelancers in Dubai is the ability to work remotely as long as the freelance license is in good standing.
All freelance license departments generally demand the following documents:
Your passport copy
Your Dubai visa and Emirates ID copy (for Dubai residents)
Your present sponsor's "No Objection Letter (NOC)" (for Dubai residents)
Recent passport-size photo
Your resume and portfolio
A "Letter of Intent" is also required by some governments, or a thorough business plan if that is not feasible.
Dubai Media City, Dubai Internet City, Dubai Design District, and Dubai Knowledge Park bring you the freelance bundle in four free zones in Dubai. Freelancers can submit bids for open tasks through the dedicated GoFreelance marketplace. The fact that the freelancer receives a permit rather than a license, in this case, is noteworthy because it permits activities like:
Data Science and Analytics
Web, Mobile, and Software Developer
The bundle costs Dhs. 7,500 plus an extra Dhs. 20 goes toward knowledge and innovation. Your passport's given name is used to issue the permit, enabling you to operate as a freelancer. The Dubai Development Authority will also need to issue you a residence permit, which may run you about Dhs 2,750 for one year or Dhs 5000 for three years. This excludes the mandatory medical coverage that all bearers of residence visas must have.
Other Interesting Licenses for Independent Contractors
You might have travelled to Dubai for some fun and sun and then wished you could remain there forever. So, if you're a contractor, this is your chance to shine. You can obtain a "remote work visa" if your non-UAE-based employers pay you more than Dhs 15,000 per month. Without a local sponsor, you can reside and work in Dubai with it.
The "talent pass" is another cutting-edge authorization available to independent contractors in technology, marketing, consulting, and the arts, culture, education, and media. Through the Dubai Airport Free Zone (DAFZ), you can access 2000 foreign businesses and qualify to file for a 10-year cultural visa. The most unexpected aspect is the ability to offer freelancing services to businesses on the mainland, which other permits prohibit.
The freelance route is the best and safest method to create your empire if you aspire to be your own boss. Dubai always creates new possibilities, such as the most recent "artificial intelligence and coding licenses." Go to Dubai to join the growing freelance community if you know how to write and comprehend the semantics of AI.
Enjoy the benefits of a freelance license and visa, such as a Work Permit, Emirates ID, Residency, and Option to Sponsor Family.