Do you need a freelance licence or a company?
One question decides it: are you selling your own time, or something other people produce? Selling your own skill means a freelance licence, which is cheaper to renew every year. Reselling, hiring or several activities means a company.
The actual difference
| Freelance licence | Company (FZ-LLC or LLC) | |
|---|---|---|
| Who it is for | One person selling their own skill | A business that hires, resells, or needs several activities |
| Published cost | From AED 6,100 (RAKEZ) · AED 7,500 (GoFreelance) — see the full cost breakdown | Varies widely by zone and activity; most zones quote rather than publish |
| Activities | Usually one, from a defined professional list | Multiple activities on one licence |
| Hiring staff | Not the purpose; visa quota is minimal | Visa quota scales with the package and office |
| Shareholders | You alone | Partners and corporate shareholders possible |
| Residence visa | Yes — the licence sponsors you | Yes — and more of them |
| Admin burden | Light | Accounting, audit requirements in some zones, renewals per activity |
The question that actually decides it
Not budget. Not prestige. It is this: are you selling your own time, or are you selling something other people produce?
- Selling your own skill — design, development, consulting, media, teaching — a freelance licence is built for exactly that, and the cheaper renewal matters because you pay it every year.
- Reselling goods, hiring people, taking on partners, or invoicing under several activities — you need a company, and trying to stretch a freelance permit around it creates problems with clients' banks and at audit.
And if you clear AED 15,000 a month or hold a degree, look at the Green Visa before either: 5 years self-sponsored beats renewing a short permit, whichever licence you hold.
What Dubai businesses are actually registered as
A useful sanity check before choosing an activity: these are the most-registered activities on Dubai's commercial register. Construction trades dominate, which tells you the licence system is built around operating businesses, not only knowledge work.
| Registered activity | Licences |
|---|---|
| Marketing Management | 9,728 |
| Floor & Wall Tiling Works | 3,581 |
| Carpentry & wood Flooring Works | 3,046 |
| Online Seller | 3,028 |
| Air-Conditioning, Ventilations & Air Filtration Systems Installation & Maintenance | 2,848 |
| Painting Contracting | 2,842 |
| Plaster Works | 2,754 |
| Plumbing & Sanitary Installation | 2,746 |
| False Ceiling & Light Partitions Installation | 2,730 |
| Electromechanical Equipment Installation and Maintenance | 2,554 |
| Wallpaper Fixing Works | 2,280 |
| Electrical Fittings & Fixtures Repairing & Maintenance | 2,003 |
| Building Cleaning Services | 1,606 |
| Engraving & Ornamentation Works | 1,489 |
By sector
| Sector | Licences | Share |
|---|---|---|
| Trading & retail | 37,050 | 40% |
| IT & media | 16,001 | 17% |
| Consulting & professional services | 15,981 | 17% |
| Construction & real estate | 14,920 | 16% |
| Logistics & transport | 4,641 | 5% |
| Manufacturing & crafts | 1,124 | 1% |
| Food & beverage | 1,110 | 1% |
| Health & medical | 401 | 0% |
| Beauty & wellness | 364 | 0% |
Counts from Dubai's published commercial register, grouped by sector. Shares are of the 91,592 licences that fall into these named sectors; a large residual sits in uncategorised activities and is excluded rather than guessed at.
Before you pay anyone
| Ask | Why |
|---|---|
| Is my exact activity on your approved list? | Invoicing outside your licensed activity is the problem that surfaces later, at a bank or an audit |
| What is the renewal price, not year one? | Year-one pricing is promotional in both routes |
| Is the establishment card included? | Without it there is no visa, and it is the most commonly omitted line |
| Are you the free zone or an agent? | Zones deal with applicants directly; an agent adds a margin for convenience |
| What does it cost to switch later? | Moving from freelance permit to company, or between zones, is a new setup, not an upgrade |
- Setting up a company for a one-person consulting practice, then paying company-scale renewals for years.
- Choosing a licence whose activity list does not cover the work actually invoiced.
- Comparing zones on year-one price and discovering renewals reverse the ranking.
- Assuming the licence grants residence. It does not; the visa is a separate application.
Verify at the source
- Dubai Department of Economy and Tourism — mainland licensing
- GoFreelance (TECOM, Dubai)
- RAKEZ freelancer permit
- ICP Smart Services — residence visa
Frequently asked questions
Is a freelance licence cheaper than a company in Dubai?
Yes, usually by a wide margin, and the gap matters most at renewal because you pay it annually. Published freelance prices start at AED 6,100 (RAKEZ) and AED 7,500 (GoFreelance); most free zones do not publish company prices at all and quote instead.
Can I hire staff on a freelance licence?
It is not designed for that. A freelance permit covers one person selling their own skill, with a minimal visa quota. Hiring means a company, where the visa quota scales with the package.
Can I switch from a freelance licence to a company later?
Yes, but treat it as a new setup rather than an upgrade — new licence, new costs, and in some cases a different zone. Ask what switching costs before you commit to either route.
What are the most common business activities in Dubai?
On Dubai's commercial register, marketing management is the single most-registered activity, followed by construction trades such as tiling, carpentry, painting and plumbing. Trading and retail is the largest sector, ahead of IT and media and professional consulting.
Sources & verification. Figures on this page were cross-checked on 2026-10-01 against UAE government portals (u.ae, ICP) and current legal-advisory publications. This site is an independent guide by Growtoday Holdings FZE, Dubai — not a government website and not legal advice. Requirements vary by emirate, nationality and case; confirm with ICP/GDRFA or a licensed advisor before making decisions.
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