Home Services Sole Establishment & Freelance Permit in the UAE

Sole Establishment and Freelance Permit in the UAE

In the UAE, there are two official ways to conduct professional activities without partners: registering as a Sole Establishment and obtaining a Freelance Permit in a free zone. Both options are legal, allow you to obtain a residency visa and open a bank account, but differ in requirements and capabilities.


Sole Establishment

  • Registration with DED (mainland, for example in Dubai).
  • Suitable for professional licenses: IT, consulting, medicine, PR.
  • Can hire employees and sign contracts.
  • Foreigners need a Local Service Agent (LSA).
  • Business account is opened, company receives TRN.
  • Liability is full (with personal assets).

Suitable for: licensed professionals, doctors, architects, corporate consultants.


Freelance Permit

  • Registration in free zone (SHAMS, RAKEZ, Dubai Media City, etc.).
  • No office or share capital required.
  • Operate as an individual but with visa rights.
  • No need for LSA.
  • Minimal reporting and checks.
  • Taxes are paid only after reaching the threshold.

Suitable for: designers, marketers, copywriters, developers, teachers.


Want to work for yourself in the UAE?

MIRAD will help you choose and launch a Sole Establishment or Freelance Permit with a visa, account, and full legal compliance.

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Comparison of Sole Establishment vs Freelance Permit

CriterionSole EstablishmentFreelance Permit
Where registeredMainland (DED)Free Zone
Legal structureBusiness without separate legal entityIndividual with permit
Is LSA needed (foreigner)✅ Yes❌ No
Can hire staff✅ Yes⚠️ No
Bank account✅ Business Account✅ Possible but not always easy
Residency visa✅ Through license✅ Through freelance visa
Reporting and obligationsMediumMinimal

What MIRAD Does

  • Select the optimal format: Sole Establishment or Freelance Permit.
  • Register turnkey in DED or Free Zone.
  • Appoint LSA (if needed), open a bank account.
  • Process visa and Emirates ID.
  • Advise on taxes, contracts, and business opportunities.

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