# self employed or small business start up?



## hether24 (Jul 24, 2010)

Hi all, 

I know 'self employed' has been discussed on the forum previously, mainly in relation to getting a residency visa.. J however will already have a residency visa via my husband who will be employed there. We move out in Dec. 

I am exploring a business model which involves the importing and selling of new technology. Can I be self employed or do I have to register as a small (one man) business, I dont know? 

Ive read small businesses require a 'trading licence' or is it possisble to be self employed and trade with other businesses in the uae without a 'trading licence' If you require a trading licence anyone received one and how? Or is the free trade zone the only option? Or would I need to explore appointing a uae national as an agent? 

Many questions.. sorry i'm just learning. Any help much appreciated!


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## dizzyizzy (Mar 30, 2008)

Hi hether,

Is illegal to do business in the UAE without the appropriate permits so yes, you will need to register your company and obtain a trading license. You can either find a local to sponsor you or you can register on a free zone. Free zone is more expensive to set up but ensures you have 100% ownership of your business. The free zone registration has been covered in the forum before, if you do a search you'll find some information on this. Search for "RAK free zone" and you will find some information that was posted not long ago.

Good luck


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## Elphaba (Jan 24, 2008)

In fact a freezone company is not more expensive to set up, especially of you set it up in Sharjah or RAK. The options however, depend partly of the nature of the business and where you are permitted to be based. (My husband has a RAK freezon company and we have been through all the options.)

To operate as a trader you must have the apppropriate licence to import goods and in fact not all freezones allow that. You can have a trading company in RAK, although the cost will depend on what good - and how many - you intend to import. If you are planning to sell B2C then you would also need premises from which to sell. if B2B only, you will have a freezone business address.

As a minimum you are looking at set up costs, including one visa, of around AED 25-30k. Business licences have to be renewed each year, naturally for a fee.

As Izzy suggests, please do a search as there have been numerous threads and discussions on this subject previously.
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## Mr Rossi (May 16, 2009)

There is an office for RAK freezone on floor 7 of the Fairmont in Dubai.


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## hether24 (Jul 24, 2010)

Thanks all that’s really helpful! As suggested I’ve done a bit more searching & reading on freezones.. it certainly the best option! 

In summary:
1. I need a permit to trade!!
2. Best option is freezone (as want to own 100%) 
3. Only some freezones allow imports..?

The nature of the business is importing and selling B2B. 

My husband and I will be based in Abu Dhabi, therefore one question I’ve not found the answer to so far: Can you have a virtual business address say in one of Dubai’s freezone and trade in Abu Dhabi also? I would be hoping to trade in both emirates? 

I’ve also looked into Abu Dhabi freezones! There are not as many as there are in Dubai. 

The main one is Abu Dhabi’s Airport Freezone. It offers its services to a broad range of business sectors, including mine. 

So far I’ve identified: 
1. They offer trade licences where the holder can import and export goods tax free!
2. No virtual offices offered, you have to lease an office space. So costs are up!
3. Type of application, one of 3 options: 
- Branch of a incorporated Company outside or inside UAE, think I could do this as my friend / business partner here in the UK has a successful business here, I want to introduce this business into the UAE market.
- FZE, would be ideal, however minimum capital 300,000 AED. May be a stretch! I would be my own company as a ‘distributor’ taking a % 
- FZCO, I’m not a limited company so don’t know how this would work, also require minimum 500,000 AED. 

Any thoughts on this much appreciated? 

Some links below that have been helpful in my search regarding Abu Dhabi and freezones! 

http://www.abudhabidutyfree.co.ae/

United Arab Emirates Freezone Authorities - Abu Dhabi Airport Free Zone Authority

About Emirates Free Zone Abu Dhabi - Dubai - Sharjah - Ajman - Ras Al Khaimah


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## hether24 (Jul 24, 2010)

Sorry.. i've just read that

_''Strictly speaking companies with trade and industrial licenses can only conduct business within the Free Zone or abroad. To sell their products in the UAE, a UAE official agent is required by law. For service based businesses no agent is required''_

source: United Arab Emirates Freezone Authorities - Dubai Free Zones

Sorry to come across dim - but does this mean I would not be able to trade B2B with shops, stores, anyone who is not in the freezone? And of course answers the question that if you are based in a Dubai freezone you cannot trade in AD and vise versa 

Thanks again!


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## Mr Rossi (May 16, 2009)

If you are a sole trader or SME most of the Dubai freezones will be out of your reach, they're expensive and prohibitive.


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## Elphaba (Jan 24, 2008)

hether24 said:


> Sorry.. i've just read that
> 
> _''Strictly speaking companies with trade and industrial licenses can only conduct business within the Free Zone or abroad. To sell their products in the UAE, a UAE official agent is required by law. For service based businesses no agent is required''_
> 
> ...


These rules are not generally enforced and certainly are more relaxed than they were a few years ago. If however, you are dealing in actual goods, you may have issues is taking them out of the freezones into which they were imported.
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## Hash4272 (Sep 26, 2010)

well seeing that your from UK, i am not sure if its the same, ... i am from USA i have 17 registered companies in USA, out of those i have 5 of them registered here all i needed was an office for each in one of the free zones, i registered my companies like this ... my original documentation for USA company, attested by the Embassy of UAE in USA, then same documents attested by Chamber of Commerce here in Dubai, once that was done i had registered my company in Dubai i received my license according to the company operations, you probably want to look into this.


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## hether24 (Jul 24, 2010)

Thanks Hash, Elphaba, feeling much better now, things are looking up! Will certainly explore the route you went down hash! Thanks again.


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