Sole Establishment and Freelance Permit in the UAE

In the UAE, there are two official ways to conduct professional activities without partners: registering as a Sole Establishment and obtaining a Freelance Permit in a free zone. Both options are legal, allow you to obtain a residency visa and open a bank account, but differ in requirements and capabilities.

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Sole Establishment

Registration with DED (mainland, for example in Dubai).
Suitable for professional licenses: IT, consulting, medicine, PR.
Can hire employees and sign contracts.
Foreigners need a Local Service Agent (LSA).
Business account is opened, company receives TRN.
Liability is full (with personal assets).

Suitable for: licensed professionals, doctors, architects, corporate consultants.

Freelance Permit

Registration in free zone (SHAMS, RAKEZ, Dubai Media City, etc.).
No office or share capital required.
Operate as an individual but with visa rights.
No need for LSA.
Minimal reporting and checks.
Taxes are paid only after reaching the threshold.

Suitable for: designers, marketers, copywriters, developers, teachers.

Want to work for yourself in the UAE?

MIRAD will help you choose and launch a Sole Establishment or Freelance Permit with a visa, account, and full legal compliance.

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Comparison of Sole Establishment vs Freelance Permit

Criterion	Sole Establishment	Freelance Permit
Where registered	Mainland (DED)	Free Zone
Legal structure	Business without separate legal entity	Individual with permit
Is LSA needed (foreigner)	✅ Yes	❌ No
Can hire staff	✅ Yes	⚠️ No
Bank account	✅ Business Account	✅ Possible but not always easy
Residency visa	✅ Through license	✅ Through freelance visa
Reporting and obligations	Medium	Minimal

What MIRAD Does

Select the optimal format: Sole Establishment or Freelance Permit.
Register turnkey in DED or Free Zone.
Appoint LSA (if needed), open a bank account.
Process visa and Emirates ID.
Advise on taxes, contracts, and business opportunities.

Get an analysis of your business tasks and a solution from an expert

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Get a free consultation with our Dubai team and choose the best UAE setup path for you as a Canadian client.

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