This article explains how freelancers can expand on their existing business ideas.
In recent months, primarily because of pandemic-associated economic changes, freelance and gig economy work has surged. We have come across many entrepreneurs who started a freelance gig as a hobby during the initial lockdown and realized that they could begin a successful formal venture. Others found themselves with plenty of free time working from home and concluded that they could offer services in their field to a broader clientele.
First and foremost, if you are currently employed full time, and under your employer’s sponsorship, you are legally required to get a NOC to engage in freelance work. Most employers are happy to permit you if you agree not to solicit their clients or engage in the same sector. If you have the requisite permission, the next step is to consider getting a freelancer permit or license.
Freelance License in Dubai
A freelance license allows you to engage in business in your legal name. It also helps in getting a bank account to engage in financial transactions such as online or credit card payments. With this freelance license, you can also purchase services such as professional indemnity insurance, so you are protected in the unlikely event something goes wrong. The key attraction of the business license is the low start-up cost.
The freelance license via TECOM is one of the most popular in town. They have a package called “Go freelance” that costs only AED 7,500 per year. In only a matter of days, you can launch a freelance venture and secure your future! The alternative is to opt for jurisdictions further afield such as Umm Al Quwain Free Zone, or Creative City in Fujairah Free Zone which tend to be competitive in pricing.
The Full Business License Option
The main benefit of getting a full business license is that you can operate under the business entity’s name and can hire staff. Your bank account, mailing address, and contracts will all contain the name of your firm as opposed to your name. This tends to give your business more credibility as you market your venture or engage in contract negotiations.
A business license option is preferred if you want to receive government contracts or pitch for business from major corporations. Corporate clients may ask you to provide TRN Number (Tax registration number) issued by the UAE FTA (Federal Tax Authority). A TRN is not allocated to freelancers at this stage.
Consider Your Budget and Long-Term Goals!
The key factor you may want to think about is how long you envision engaging in your work! If it is a temporary venture that will only last a short period while you engage in other employment, then a freelance permit may be the way to go. However, if you envision doing this over the long term and turning it into a full-time job with the addition of staff, you will be better off with a business license from the outset.
If you want to keep your costs low, go with the freelancer option. You will not need to rent office space as free zones let you rent a workstation that you may use for your business.
Can’t Decide and Want an Expert Opinion for Free?
We help entrepreneurs shuffle through all the options for their business venture and find the right one that matches their needs and future aspirations. Reach out to one of our expert business consultants today to see how we can help you through a free consultation.
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