# Anyone self employed in Dubai?



## B-Bear (Jan 29, 2010)

Hi All,

I am wondering if any of you guys are self employed in Dubai or if you run a small business from home, maybe sales or consultancy of some kind.

Do you need a work permit? How do you get a work permit, if not via a sponsoring employer?

Any help, advice or details of experience would really be greatly appreciated.

Many thanks in advance
B-Bear


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## Gavtek (Aug 23, 2009)

Best bet is to set up a Free Zone company to work under with yourself as Managing Director.


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## B-Bear (Jan 29, 2010)

*Free Zone*



Gavtek said:


> Best bet is to set up a Free Zone company to work under with yourself as Managing Director.


Thanks Gavtek. - I have heard of this. Is this where I would approach somewhere like Jebel Ali Free Zone with a business plan and then they take a percentage of my profit?

If I do approach such a free zone, do I then have to have an office within the free zone, or can it be anywhere else in Dubai?

Many thanks.


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## Elphaba (Jan 24, 2008)

B-Bear said:


> Thanks Gavtek. - I have heard of this. Is this where I would approach somewhere like Jebel Ali Free Zone with a business plan and then they take a percentage of my profit?
> 
> If I do approach such a free zone, do I then have to have an office within the free zone, or can it be anywhere else in Dubai?
> 
> Many thanks.


JAFZ is more for larger trading companies. Depending on the type of company you would require, it is likely that RAK FZ would be cheapest. In a Free zone (FZ) you have 100% ownership, but you are looking at minimum set up costs of AED 25k.

The alternative is to set up a LLC as that is where you require a local sponsor who would own half the company. Generally not the route you'd want, unless you need their influence in a particular way

Once the company has been set up, you become employee number one and get a residency visa and work permit.

-


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## Gavtek (Aug 23, 2009)

They don't take any of your profit, all you have to pay them is for things like visa processing, trade license, etc. You probably would need an office there though. One possibility may be to go to RAK Free Zone for registration and just work from home.


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## B-Bear (Jan 29, 2010)

*RAK Free zone*



Gavtek said:


> They don't take any of your profit, all you have to pay them is for things like visa processing, trade license, etc. You probably would need an office there though. One possibility may be to go to RAK Free Zone for registration and just work from home.


Hey Gavtek & Elphaba,

That's great advice. I think AED25K sounds reasonable if they are not taking any profit. - I'll make some further enquiries in that area. 

Many thanks to both - it has been extremely helpful.

Cheers


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## Elphaba (Jan 24, 2008)

B-Bear said:


> Hey Gavtek & Elphaba,
> 
> That's great advice. I think AED25K sounds reasonable if they are not taking any profit. - I'll make some further enquiries in that area.
> 
> ...


I have done this, so feel free to ask any questions. 

-


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## B-Bear (Jan 29, 2010)

*self employed*



Elphaba said:


> I have done this, so feel free to ask any questions.
> 
> -


Hi Elphaba, do you mind if I PM you?


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## Anna returning (Aug 17, 2009)

B-Bear said:


> Hi All,
> 
> I am wondering if any of you guys are self employed in Dubai or if you run a small business from home, maybe sales or consultancy of some kind.
> 
> ...


I've also set up as a FZ LLC in Knowledge Village, which is part of TECOM. Cost me more like 45K because I was doing it fresh from UK, which it sounds like you're doing too. 
Would be useful to know if those who say it was around 25K were already in Dubai, and maybe didn't need as much in terms of admin/docs etc? I'm not sure.
There is now a 'virtual' FZ. I know someone who's set up a Wealth Management business this way recently BUT the monthly fee you pay them for your 'virtual' presence is more than I pay for my office-that-I-don't-use. Bottom line is do your research  And good luck!


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## Xpat (Nov 12, 2008)

Hi Bear self employed here.. if you want to sell service then FZ is great if you want to sell products from your own store then non-freezone is must


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## oh! (Feb 24, 2010)

Yeah, every FZ allows a certain type of business only, be it a physical office or a virtual one. Again virtual may have monthly charges or annual ones, Plus with virtual you may or may not get permission to sponsor your spouse (Please check this, I know someone who got stuck like this). 

Type of Zones: DIC (Dubai Internet city) is for net/computer related businesses, DMC (Dubai Media city) is for Media and advertising related, JLT falls under DMCC so you can have a trading license here, Studio city is for productions, IMPZ is mainly for print media productions but anything related can also get in here. JAFZA is much bigger and almost everything and anything is there but I guess mostly companies with warehousing or production requirements are based out of there and ofcourse those who have been here since Jebel Ali had been formed.

Don't really know what the Airport free zone is for but I have seen a lot security firms there besides aviation ofcourse. DIFC is for financial and I guess legal..

so there are a lot of Free Zones and I think all FZs have different fee structures (am I right?).

The other cheaper alternative is that you get into the FZ of a smaller state like Ajman or RAK (RAK as mentioned above is the cheapest). However, do make sure that you take the option where you are allowed to operate from another state. because I heard it through the grapevine that RAK may have recently started putting in the clause that with every license you have to have an office in RAK as well.

I guess a lot will depend on what area of business are you looking at


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## Elphaba (Jan 24, 2008)

Anna returning said:


> I've also set up as a FZ LLC in Knowledge Village, which is part of TECOM. Cost me more like 45K because I was doing it fresh from UK, which it sounds like you're doing too.
> Would be useful to know if those who say it was around 25K were already in Dubai, and maybe didn't need as much in terms of admin/docs etc? I'm not sure.
> There is now a 'virtual' FZ. I know someone who's set up a Wealth Management business this way recently BUT the monthly fee you pay them for your 'virtual' presence is more than I pay for my office-that-I-don't-use. Bottom line is do your research  And good luck!


A non-Dubai FZ (such as in RAK) is much better value for money 

-


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## Elphaba (Jan 24, 2008)

oh! said:


> Yeah, every FZ allows a certain type of business only, be it a physical office or a virtual one. Again virtual may have monthly charges or annual ones, Plus with virtual you may or may not get permission to sponsor your spouse (Please check this, I know someone who got stuck like this).
> 
> Type of Zones: DIC (Dubai Internet city) is for net/computer related businesses, DMC (Dubai Media city) is for Media and advertising related, JLT falls under DMCC so you can have a trading license here, Studio city is for productions, IMPZ is mainly for print media productions but anything related can also get in here. JAFZA is much bigger and almost everything and anything is there but I guess mostly companies with warehousing or production requirements are based out of there and ofcourse those who have been here since Jebel Ali had been formed.
> 
> ...


That has always been the case - with every FZ across the UAE. Just because you have a serviced office or facilities doesn't mean you have to work from there.

-


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## Andy Capp (Oct 5, 2008)

Virtuazone, VirtuZone do it for the following (in Fujeriah)...



> Take a look at the attached. It gives all the pricing you need to know. Basically:
> 
> Registration Fee (one time only)
> 4,000
> ...


From an e-mail...


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## B-Bear (Jan 29, 2010)

*self employed*



Xpat said:


> Hi Bear self employed here.. if you want to sell service then FZ is great if you want to sell products from your own store then non-freezone is must


Thanks Xpat. I've checked the RAK FZ website and it is possible to obtain a commercial / service license for just under AED 28K but it does not give detail about what this means. 

On the selling side, how about if I am buying from within UAE and then exporting or alternatively if I am buying in UAE and also importing and then selling in UAE from my home and not a store? do you know the regulations around this.

Thanks


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## Andy Capp (Oct 5, 2008)

basically as an FZC you're not allowed to sell imported products unless through an LLC, however in practise you sell to anyone and pay a 5% import tax on the sales price of the goods. You can't sell retail (B2C) as an FZC, only B2B.


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## B-Bear (Jan 29, 2010)

*Self employed*

Thanks to everyone who has posted a thread here. 

There's some great information I can take on board for further evaluation and I am now getting a better understanding of the possible costs.

Your input has been greatly appreciated.

Thanks again.
B-Bear

:clap2:


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## Anna returning (Aug 17, 2009)

Elphaba said:


> A non-Dubai FZ (such as in RAK) is much better value for money
> 
> -


Once set up, do you know (or does anyone know?) if you can move your business to another FZ??
I'm guessing even if you can, it would have to be when the license comes up for renewal?


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