Freelance permit vs company in the UAE (2026): emirate by emirate

A freelance permit licenses an individual to provide services in specific activities. Examples are media, tech, education and design under GoFreelance, or the categories each free zone publishes. The holder invoices in their own name. Typically, the permit holder:

• can sponsor their own residence visa
• cannot hire or sponsor staff. GoFreelance's FAQ says plainly: 'your freelance license does not allow you to hire or sponsor staff'.

A company is a separate legal person: a free zone FZ-LLC or FZE, or a mainland LLC. It can:

• employ people and sponsor their visas
• trade goods where licensed, and hold contracts in its own name
• usually open a corporate bank account more easily
• give the owner limited liability

It also carries more administration, such as a lease or flexi-desk, corporate tax returns from day one, and in many free zones audited accounts.

The choice is usually decided by three questions. Will you hire in the next year? Do your clients, especially corporates and government, accept invoices from a permit holder? Is your activity on a freelance list at all? If the answer to the first is yes, or the third is no, you need a company.

These are fees published by the authority itself. Check the authority before paying, because each says fees can change.

• Dubai, GoFreelance (TECOM: Dubai Media City, Internet City, Knowledge Park, Design District): freelance package AED 7,500 a year (the FAQ says AED 7,520). Establishment card AED 2,000. Employment visa AED 4,600 for one year or AED 5,042 for two years. Medical, Emirates ID and health insurance are extra.
• Ras Al Khaimah, RAKEZ: RAKEZ's own article says the freelance permit 'starts from AED 6,100'. The article is dated June 2023, and the page was updated December 2025.
• Sharjah, SHAMS (Sharjah Media City): shams.ae pages show different figures. Media licence packages start from AED 5,750 without a visa, and visa-inclusive freelance packages are priced higher. We could not confirm one current freelance price, so get an itemised quote.
• Ajman Free Zone: AFZ describes a sole professional or freelance licence across 40 categories, with one residence visa and family sponsorship. It does not publish a price on that page; it points to its cost calculator.
• Abu Dhabi, ADDED freelancer licence: issued through TAMM, with 100 activities as of August 2024. We could not read a fee on TAMM, so check the service page.

For company-route costs, see cheapest free zones 2026.

Corporate tax. A permit holder is a natural person. Under Cabinet Decision No. 49 of 2023, a natural person's business is inside corporate tax only if turnover from business activities exceeds AED 1 million in a calendar year. Salary and personal investment income do not count. Above the line, the person registers and taxable income is taxed at 0% up to AED 375,000 and 9% above.

A company is a taxable person from incorporation, whatever its income. It must register, keep accounts and file a return every year, even with a small profit or a loss. A free zone company may qualify for 0% on qualifying income if it meets the Qualifying Free Zone Person conditions.

Both routes can elect Small Business Relief if revenue is AED 3 million or less, subject to the conditions and the relief's end date. Check the current FTA position before relying on it.

VAT is the same for both. Registration is mandatory when taxable supplies exceed AED 375,000 in the past 12 months, or are expected to in the next 30 days. Voluntary registration is possible from AED 187,500. A registered permit holder files VAT returns in their own name.

Worked example: a designer bills AED 900,000 in a calendar year. On a permit, they are below AED 1 million, so there is no corporate tax registration, but VAT registration is mandatory. In a company, they file a corporate tax return, and VAT applies in the same way.

Signs it is time to move to a company:

• You need to hire. A permit cannot sponsor staff. Contractors are the only workaround, and they bring their own licensing questions.
• Turnover is approaching AED 1 million. You will be in corporate tax either way, and you lose the main tax difference between the routes. A company also lets you separate business and personal assets and liability.
• Clients or tenders require a company. Some corporate procurement teams and government tenders want a trade licence held by a legal entity.
• Your activity has changed. Working outside the activities on your permit breaches licensing rules, whatever the tax position.
• Banking friction. Some banks onboard companies more readily than individuals on permits.

Moving from permit to company is a licensing change. If you transfer the business into a new company, think about the timing of the transfer, VAT registration and contracts. Our guide to permit vs sole establishment covers the case where you stay a natural person.

1. Confirm your activity appears on the freelance list of the authority you are considering.
2. Get an itemised quote from the authority for permit, establishment card, visa, medical, Emirates ID and insurance, and keep it dated.
3. Ask your two largest prospective clients whether they accept permit-holder invoices.
4. Project 12 months of turnover against AED 375,000 (VAT) and AED 1 million (corporate tax for individuals).
5. Decide whether you will hire within a year. If yes, price the company route now.
6. Check bank account options for the route you choose.
7. Set up bookkeeping from day one, separating business and personal spending even on a permit.
8. Diary the renewal date, because permit renewals are annual at full fee.

For a full GoFreelance cost build-up, see freelancer setup in Dubai 2026. For indicative first-year totals for each route, see freelance permit vs company cost.