Open a company or apply for a freelance visa in the UAE: how to choose the best solution?
The choice between starting a company or applying for a freelance visa in the UAE depends on many factors, including the nature of the activity, expansion plans and business structure. International law firm Antwort Law has prepared a detailed comparison of these two options to help you make the best decision.
Two main advantages of opening a company in the UAE compared to applying for a freelance visa:
1) Ability to hire employees: Companies can hire employees and attract contractors, which allows them to expand their team and scale their business.
A freelance visa does not allow you to hire workers or attract large numbers of contractors, which limits your business expansion opportunities. They are also forced to complete all tasks themselves, which can reduce efficiency and limit growth.
2) Brand Building: A company can register its name, logo and trademark, which helps develop the brand and increase customer trust.
Freelancers have limited branding options since they work under their own name and cannot register a trademark or logo. Lack of a brand can reduce the trust of customers and partners, which can negatively affect sales and business development.
Two main disadvantages of opening a company in the UAE compared to obtaining a freelance visa:
1) More complex registration process: Opening a company requires more time and effort compared to applying for a freelance visa, including registration, obtaining licenses and compliance with legal requirements. The process of obtaining a freelance visa and license is much simpler and faster than registering a company. More complex registration process:
2) High costs: registering a company, obtaining licenses, renting an office and hiring employees can require significant financial investments. It is also necessary to take into account fixed costs in the future: paying rent, employee salaries and other operating expenses can significantly increase the company's budget. Applying for a freelance visa requires less financial investment compared to opening a company.
3) Freelancers can work remotely and are not required to rent office space.
The choice between opening a company and obtaining a freelance visa in the UAE depends on your business goals, business structure and plans for the future. If you are planning on scaling, branding and local operations, starting a company will be the best decision. If you work independently and need flexibility and cost-effectiveness, a freelance visa will be the best choice.
Antwort Law is ready to help you with the selection and preparation of all necessary documents so that you can successfully run your business in the UAE. Contact us for detailed advice and professional support at every stage of your entrepreneurial journey.
Lidia Ivanova
International Lawyer
Antwort Law