When You Need Only a Freelance Permit, a Full Trade Licence – Or Both
Independent professionals, side-gig workers and small entrepreneurs in Dubai often encounter terms such as “freelance visa Dubai MOHRE”, “trade licence Dubai” or “business licence Dubai for freelancers”, without a clear understanding of what each option actually covers. The confusion is understandable, as different authorities handle federal work permits, emirate-level licences and tax requirements, and they use different terminology.
This article explains, in practical terms, what a MOHRE freelance/self-employment permit is, what a Dubai business (trade/economic) licence is, and how each one interacts with residence visas and UAE tax obligations. Using official descriptions from mohre.gov.ae, u.ae, Dubai’s Department of Economy and Tourism (DET) and the Federal Tax Authority (FTA), we then walk through typical scenarios so you can see which structure generally suits your situation—and when people may hold both.
Understanding The MOHRE Freelance/Self‑Employment Permit
The self-employment permit is a specific federal work permit type issued by the Ministry of Human Resources and Emiratisation (MOHRE). According to the MOHRE, this freelance/self-employment permit allows an individual to engage in self-employment independently, without being sponsored by an employer and without a standard employment contract. In practice, this means you contract directly with clients for your services, rather than being hired into their staff structure.
Under a MOHRE freelance permit, the person earns income directly by providing services for a specified period, task or project to individuals or establishments. The holder is not regarded as an employee of those clients. The relationship is different from a classic employer/employee arrangement. There is no standard MOHRE employment contract with the client, and the freelancer controls how they perform their work within the agreed scope.
Freelance/self-employment permit is only about the right of the natural person to work. It is one of several UAE work permit types, but it does not itself constitute a commercial, professional, industrial or tourism business licence, and it does not create a separate legal entity. You operate in your own name as an individual, rather than through a company registered with an economic department or free zone.
For residence purposes, the UAE offers a Green Residence visa category for freelancers and self-employed individuals. Eligibility is assessed based on criteria set by the competent authorities and may include holding a valid freelance or self-employment permit issued through MoHRE, meeting qualification requirements, and demonstrating sufficient income or financial solvency for the intended period of stay.
Specific thresholds—such as minimum income levels or educational qualifications—are subject to change and may vary depending on the applicant’s profile and the sub-category of the Green Residence visa. A separate commercial business licence is not generally listed as a core requirement for this residence category, but applicants should always verify the current criteria through official channels before applying.
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What A Dubai Business Licence Actually Covers
A Dubai business licence – often called a trade or economic licence – is different in nature. It is an authorisation issued by a competent licensing authority that allows a business to conduct specified economic activities. In the Dubai mainland, this authority is the Dubai Department of Economy and Tourism (DET); in free zones, it is the relevant free‑zone authority. The licence is attached to an establishment or company, not to a work permit type.
In the mainland, a Dubai business licence is always linked to a chosen legal form, such as a “sole establishment licence Dubai”, a “limited liability company licence Dubai”, or a partnership. The activities and licence details are recorded in official registers. The UAE’s “verify business licences” service, which includes the DET’s search tools, lets the public check registered trade names and licences, confirming that these are formal government records distinct from any MOHRE work arrangements.
The Dubai DET operates the “Invest in Dubai” portal, where investors can choose a legal type, select business activities, upload documents and obtain or renew licences. This process relates to setting up and running a licensed business in Dubai, not to obtaining a self-employment work permit issued by the MOHRE. Once established, the entity may, under MOHRE rules, apply for work permits for its employees and support investor or partner residence visas, depending on ownership and structure.
Even home‑based businesses fall under this economic-licensing framework. For example, the “Intilaq home-based business licence Dubai” scheme still involves obtaining an Intilaq licence from the Dubai DET. Intilaq is a category of business licence with its own conditions; it is not a freelance/self-employment permit and does not substitute for MOHRE work authorisation when employees are involved. In summary, a Dubai business licence governs the business activities and legal form, while the MOHRE permits govern who is allowed to work and on what basis.
Key Differences: Freelance Permit vs Business Licence in Dubai
The MOHRE freelance/self-employment permit and a Dubai business licence operate on fundamentally different levels, even though both allow a person to carry out economic activity.
The freelance/self-employment permit is issued by the Federal Ministry of Human Resources and Emiratisation (MOHRE). It is one of several federal work-permit types and applies strictly to an individual natural person. It grants that individual the right to work independently in the UAE private sector without entering into a standard employment contract with a single employer. The permit does not create a legal entity, nor does it allow the holder to employ staff under that permit. In dealings with clients, the freelancer is legally recognised not as an employee, but as an independent service provider.
In terms of residency, this permit can be used—together with education and income or solvency evidence—to apply for the Green Residence visa for freelancers and self-employed persons, or it can be combined with other residence routes.
By contrast, a Dubai business licence is issued either by the Dubai Department of Economy and Tourism (DET) for mainland companies or by the relevant free-zone authority for businesses established in a free zone. A business licence governs the economic activities a business is authorised to conduct and defines the legal form under which it operates—such as a sole establishment, LLC or partnership. It creates an officially registered economic entity with a trade name and licensed activities.
A licensed establishment or company can, under MOHRE rules, hire employees, obtain work permits for its staff and sponsor investor or partner visas. Business licences cover a broad spectrum of activities on the mainland — professional, service-based and commercial — and are used when the owner needs a formal business structure, intends to trade or plans to employ a team.
In summary, the freelance/self-employment permit regulates the individual’s work status, while the business licence regulates the activities and legal existence of a business entity. Freelancers usually rely on the MOHRE permit to provide their own services independently, whereas entrepreneurs intending to trade, scale operations or hire staff require a Dubai business licence.
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Which Option Suits Your Situation? Practical Scenarios
Choosing between a MOHRE freelance permit Dubai route and a Dubai business licence is less about labels and more about how you intend to work. Some people are best served by a purely individual self-employment model, others by a fully licensed entity, and some eventually hold both—for example, operating personally in some areas while also building a company for larger projects or employees.
Consider, first, the independent consultant or creative professional. If you plan to provide your own services personally to several clients – such as business consulting, design work, coaching or similar – and you do not intend to employ others, the MOHRE’s definition of a freelance/self-employment permit matches this model well. You would contract directly with each client, would not be counted in their employee headcount, and, if eligible, could combine the MOHRE freelance/self‑employment permit with a Green Visa residence permit for freelancers and self‑employed persons, without necessarily registering a separate company.
By contrast, an entrepreneur who wants to sell goods, operate a physical or online shop, or build a recognisable brand with employees would consider activity categories that the u.ae associates with economic licensing. In these cases, setting up a licensed business through the Dubai DET or a free zone, for example, as a mainland LLC or a free zone company, and obtaining a trade licence recognized by the Dubai authorities, is the relevant path. That licensed entity can then, in line with the MOHRE rules, obtain work permits for staff and support investor or partner residence visas for its owners.
There is also a distinct route for people on family sponsorship who merely want occasional or part-time additional work. Individuals on a family‑sponsored residence visa who wish to work must obtain a part-time work permit from the MOHRE, with a no‑objection certificate (NOC) from their sponsor, and an employer who applies for that permit. This arrangement implies an employer/employee relationship with the establishment using the permit. It is separate from both the freelance/self-employment permit and from operating a licensed business as an investor.
In many real-life cases, people transition between these models over time. A freelancer may later decide to set up a licensed business for expansion, but the available structures depend on the activity and ownership rules. On the mainland, forming an LLC may still require UAE participation or prior approval under the foreign-direct-investment framework, so not every freelance activity can be converted directly into a 100% foreign-owned LLC. Likewise, a business owner may add a MOHRE self-employment permit for specific work they perform personally.
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Visas, VAT And Corporate Tax: What Both Options Have In Common
While a MOHRE freelance or self-employment permit and a Dubai business licence serve different regulatory purposes, they intersect in practice through the UAE’s federal residence and tax systems. Residence status for non-citizens working in Dubai is governed at the federal level and follows a dual structure: a work authorisation (such as a MOHRE work permit or self-employment permit, where applicable) and a residence visa issued through the General Directorate of Residency and Foreigners Affairs (GDRFA) or the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP).
These federal residence elements apply across all emirates, regardless of whether the individual is a freelancer, an employee, or a business owner. By contrast, trade and business licences are issued at the emirate level and regulate commercial activity rather than immigration status.
From a tax perspective, the Federal Tax Authority (FTA) emphasises that VAT registration obligations are based on business activity and turnover, not on whether you hold a trade licence. VAT registration is mandatory once a natural or legal person conducting business in the UAE exceeds AED 375,000 in taxable supplies and imports over the previous 12 months, or is expected to cross that level in the next 30 days. Voluntary registration is possible from AED 187,500. The FTA explicitly states that these rules apply even where the person has no trade licence, so both freelancers and licensed entities need to monitor their figures.
Corporate tax works on a similar principle. The FTA has indicated that natural persons conducting a Business or Business Activity in the UAE may fall within the corporate tax regime once their annual revenue exceeds AED 1 million in a calendar year. Higher‑earning holders of a MOHRE freelance permit and higher‑earning companies with a Dubai business licence, therefore, both need to consider whether corporate tax registration and compliance apply to them when they reach that level of activity.
The key point is that neither a freelance/self-employment permit nor a business licence, by itself, determines whether VAT or corporate tax registration is required. Instead, the decisive factor is whether you, as a natural person or through a legal entity, are conducting business in the UAE and meet the revenue thresholds set out in the tax legislation and FTA guidance.
FAQ: Freelance Permit And Business Licence In Dubai
Which Is Better: Freelance Permit Or Business License In Dubai?
There is no universal “better” option. A MOHRE freelance/self-employment permit is generally aligned with individuals who want to work independently, without being employees of their clients, and without necessarily creating a separate company. A Dubai business licence is generally aligned with running a broader operation under a trade name, especially where you plan to hire staff, sell goods, or establish a more structured organisation. Your planned activities, scale and long‑term goals should guide the choice, and some people eventually use both structures.
When Do I Need A Business Licence Instead Of A Freelance Permit In Dubai?
A business licence authorises economic activities under a specific legal form, issued by an economic department or free zone. If you plan to operate a shop, trade in goods, run a branded online store, or employ a team under a company name, those activities typically fall within the scope of a licensed establishment rather than a purely personal freelance arrangement. In such cases, setting up a licensed entity through the Dubai DET or a free zone is usually the relevant path, with MOHRE work permits then used for any employees.
Can I Work As A Freelancer In Dubai Without A Trade Licence?
You can work as a freelancer in Dubai with the MOHRE self-employment permit alone. This federal permit lets you provide your own services without setting up a company or holding a Dubai trade licence. Keep in mind that some free-zone “freelance permits” are different — they are treated as business licences by the free zone and create a licensed establishment there. If your activity grows into trading, hiring staff or operating like a company, you would then need an economic licence.
Does A MOHRE Freelance Permit Replace A Business Licence In Dubai?
No. The MOHRE explicitly treats the freelance/self-employment permit as a work permit type for natural persons, not as a commercial, professional, industrial or tourism business licence. It governs your own right to work independently and clarifies that you are not an employee of your clients. A Dubai business licence, by contrast, is issued by an economic authority to an establishment or company, attached to a legal form and activities, and allows that entity to operate and, where permitted, employ staff. The two instruments address different aspects and can coexist.
Do Freelancers Need To Register For VAT In The UAE?
Freelancers may need VAT registration in the same way as small businesses. The Federal Tax Authority explains that VAT applies to any natural or legal person conducting business in the UAE, even without a trade licence. If your taxable supplies and imports exceed AED 375,000 over the past 12 months, or are expected to exceed that amount in the next 30 days. Registration is generally mandatory; voluntary registration is available from AED 187,500. Holding a MOHRE freelance permit or a trade licence does not in itself trigger VAT; the trigger is your business activity and revenue level.
How Does Corporate Tax Work For Freelancers In The UAE Over AED 1 Million Revenue?
The FTA has indicated that natural persons conducting a Business or Business Activity in the UAE may fall within the corporate tax regime once their revenue exceeds AED 1 million in a calendar year. This means that a high‑earning freelancer with a MOHRE self-employment permit and no company, and a high‑earning licensed business on the mainland or in a free zone, can both face similar corporate tax registration obligations once they cross that threshold. The exact impact depends on the detailed corporate tax rules in force at the time, so it is prudent to monitor your revenue and seek specialist tax guidance where necessary.
How To Choose Between the MOHRE Self-Employment Permit And the Dubai Trade Licence?
A useful way to decide is to ask three questions. First, do you intend to work alone, personally delivering services, or to build a team and brand? Second, are your activities primarily services provided by you, or do they involve trading in goods and running a physical or online shop? Third, where are you in terms of residence and sponsorship—for example, do you plan to use the Green residence visa self-employed route, or to hold investor/partner status in a company? Mapping your answers against the formal definitions from the MOHRE will usually make the most suitable structure more transparent.
What If I Am On A Family Visa And Want To Take Extra Work?
For individuals on a family‑sponsored residence visa, obtaining a part-time work permit from the MOHRE with a no‑objection certificate (NOC) from the family sponsor and an employer willing to hire you. This MOHRE part-time work permit family visa route establishes an employer/employee relationship with that establishment. It is not the same as becoming self-employed on a MOHRE freelance permit, and it is separate from starting a licensed business as an investor or partner.
Can A Licenced Company Also Use A Freelance Or Self-Employment Permit?
Yes, in some cases, an individual who owns or manages a licensed company may also hold a MOHRE self-employment permit, UAE-wide, for specific personal consulting or professional work. In contrast, the company itself operates under its Dubai business licence. The two frameworks are separate: the company, as an establishment, can obtain MOHRE work permits for employees and is recorded in the trade licence register; the self-employment permit continues to govern the individual’s own independent work where they are not an employee of their clients.
Explained by
Shaimaa Sayed Qasem
Department of Dubai Economic Services at EGSH
Shaimaa Sayed Qasem is a dedicated service provider at the Department of Dubai Economic Services at EGSH, with seven years of experience delivering business services, supporting clients and ensuring compliance with regulatory requirements.
