Pros and cons of Freelance Visa Permit in Dubai

Pros and cons of Freelance Visa Permit in Dubai

“Your life doesn’t get better by chance, it gets better by change” -Jim Rohn Stuck at a boring mundane 9 to 5 job? Want to be the owner of your own destiny? Want to have full control of your life? Who doesn’t? Nowadays most people are looking for side hustles for some extra income but more importantly they are moving to setting up their own business. But what is even better if you have the correct skill set is to freelance. This gives you the freedom of choosing the project, the time and the place. Dubai is not much behind when it comes to freelancing professionals. With 92.05% expats in 2020 (as per www.dsc.gov.ae) there are a huge number of individuals who are here as dependents of their family who would like to make better use of their time and earn the extra money. Others may be just trying to improve their working situations. Whatever the reason Dubai offers the freelance visa permit to allow you to freelance. Before jumping at the opportunity let us first look at the pros and cons of this freelance visa permit. 

The Pros:

• The initial investment required to start your career as a freelancer is quite low. With the comfort of working from your own home, you do not need any office space. Thus, there is no need to acquire premises. This saves money. There are many options of free economic zones (FEZs) that issue the freelance permit visa- e.g. Media City Dubai, Dubai Knowledge Park, Dubai Internet City and Dubai Design District.
• The setting up process as opposed to the process of setting up a full-fledged company is much simpler. There is no need to have a separate company name. Your name acts is the company name, the brand when you are freelancing.
• The government of Dubai is keen on encouraging the freelancing community and provides wonderful support as it also inspires other businesses to engage the services of freelancers.
• One of the most wonderful advantages of being a freelancer is the fact that freelancers are not subjected to frequent audits like most companies.
• Freelancers unlike all businesses need not file full-fledged, structured financial reports etc. at a regular frequency.
• The most important benefit of becoming a freelancer is that you can work any time anywhere. Which gives you enough flexibility to ensure that you have a great work-life balance.

The cons:

• Freelance permit visas are issued from FEZs. This means that they can operate only in that particular FEZ. However freelancers get permit visas from FEZs that are skill specific and so, this might not be that big a deal.
• The freelance visa permit is only for one person- you. You cannot hire under you. For that you need to get a trade license.
• As it is not an established business, a freelancer cannot open a corporate bank account and do not have Tax Registration Number (TRN) that are mostly required by bigger companies to be engaged. However, you can still get business from small to medium-scale businesses who do not require TRN. Read more on: Dubai’s new Property Visa a good news for all property buyers and investors

Things to Know Before Applying for a Freelancer Visa 

1. Eligibility

Not everyone will have the right to apply for a freelance visa since one is usually issued for skilled individuals in industries like media, design, education, and technology. You'll usually have to provide proof of your skills or work experience. 

2. Validity and Renewal

Freelance visas will have a validity period of between one and three years, depending on the package you selected. To continue working legally, you will have to renew your freelance visa before it expires. 

3. Cost

Freelance visas are not as expensive as applying for a business visa to set up a company. However, you still should anticipate some costs involved when applying for a freelance visa.

4. Income & Taxation

Dubai has low personal income taxes, so as a freelancer, you will have low taxes. However, you may not be able to win contracts for businesses that will want you to have a Tax Registration Number (TRN).

5. Networking Opportunities

The fact that many free zones hold events and workshops to connect freelancers can be an opportunity to meet potential clients and other talent in your field.

6. Health Insurance Requirements

It is a legal requirement for individuals living and working in Dubai to possess valid health insurance. This also includes freelancers. Make sure you have a plan in place before or directly after you receive your visa. 

Successful Tips for Freelancing in Dubai

1. Build a Strong Portfolio: If you are a freelancer, your future clients will look at your portfolio before hiring you. You should have a portfolio that shows your best work. Additionally, it gives an insight into your capabilities and achievements.  
2. Set Your Prices Accordingly: Learn what the market prices in your industry are. If you set a low price, then it can damage your income. And a high price can limit your opportunity to get clients.
3. Be Organized: You should have to keep track of your contracts, invoices, and deadlines. This will serve as an advantage to maintain your integrity and reputation in the market and hopefully avoid missed payments and late submittals.
4. Network: If you want to make new connections, then you should become a part of the Free Zone events, workshops, and online meet-ups. Many freelance workers find their best clients through personal referrals.
5. Keep learning: Working in Dubai can be competitive. You have to upgrade your skills through courses or training so you can continue to stay active in your industry.

Frequently Asked Questions (FAQs) About Pros And Cons Of the Freelance Visa Permit In Dubai

1. Who can apply for a freelance visa in Dubai?

Generally, people who work in the fields of media, design, education, technology, or similar (there are free zones for each) can potentially apply for a freelance Visa if they can demonstrate the skills.

2. For how long is a freelance visa valid?

Generally, 1 to 3 years. You will need to renew your freelance Visa before it expires to continue working in Dubai.

3. Can I work for multiple clients if I have a freelance visa?

Yes. You can have contracts with more than one client at the same time.

4. I have a freelance visa, Can I hire someone?

No. Your visa is for you. To hire people, you need to open a company and get a trade license.

5. Do I need an office for a freelance visa?

No. You can work anywhere or from home.

If after going through this list of pros and cons you do decide to get a freelance permit visa for yourself in Dubai, we at Flyingcolour® can help simplify this seemingly daunting task. Flyingcolour Business setup consultants has been helping clients since the past 20+ years. Please feel free to mail your queries at info@flyingcolour.com or contact us at +971 4 4542366.