Freelance Permit vs Company Licence for a UAE Solo Consultant

Freelance permit or company licence for a solo consultant in the UAE? Compare visas, hiring, bank access and the AED 1,000,000 corporate tax turnover line.

8 October 2026Qawi7 min read

Key takeaways

A freelance permit suits a solo consultant who works alone, sells only the services the permit lists, and has no plans to hire; a company licence suits one who wants employees, a wider list of activities or a business that can be sold later.
The UAE's official work permit list includes a freelance work permit for people who work independently without an employer sponsor or an active employment contract (u.ae, checked October 2026).
A solo consultant's business income is outside corporate tax until turnover exceeds AED 1,000,000 in a calendar year, but this applies to a freelancer who is a natural person; a company is a separate taxpayer from its first day.
A freelancer who crosses AED 1,000,000 of turnover must register for corporate tax by 31 March of the following year, and missing that date carries a penalty of AED 10,000 (FTA, checked October 2026).
VAT works the same way for both routes: registration is mandatory above AED 375,000 of taxable supplies and optional from AED 187,500 (FTA, checked October 2026).
The cheaper structure on day one isn't always the cheaper one in year three, because moving from a permit to a company later means a new application, and possibly new bank onboarding.

What is the difference between a freelance permit and a company licence?

A freelance permit lets you, as an individual, offer a defined set of services without an employer and without setting up a company; a company licence creates a legal entity that holds the licence, can open corporate accounts and can sponsor staff. The u.ae work permit page lists a freelance work permit as one of the permit types, issued to individuals who want to work independently, including foreign nationals on self-sponsored residence visas.

Free zones run their own versions. The Creative Media Authority offers a "Sole Proprietor (Freelancer)" licence through twofour54 in Abu Dhabi, and its application form limits activities to listed gaming and general media roles such as photographer or producer. A permit's activity list is the first thing to check, because consulting isn't on every list.

Point	Freelance permit	Company licence (free zone or mainland)
Who holds it	You, as an individual	A legal entity you own
Activities	Usually a short, issuer-defined list	Chosen at setup; SHAMS, for one, allows up to five on one licence
Visas	Depends on the issuer; confirm in writing	Quota set by the licence and office space; SHAMS states up to 50 visas per licence
Hiring staff	Often not part of the permit; confirm with the issuer	Yes, through the establishment
Corporate tax	Only if turnover exceeds AED 1,000,000 in a calendar year	Company is a taxpayer; registration required
Sale or transfer	Personal to you	Shares can be transferred

Sources for the table: u.ae, Creative Media Authority, SHAMS website, Cabinet Decision No. 49 of 2023; all checked October 2026. Fees for permits and licences vary by issuer and change, so ask the issuing authority for a written quote rather than relying on a published headline figure.

Which route is better for a solo consultant?

For a consultant who works alone for a handful of clients and wants the lowest setup effort, a freelance permit is usually the better start; for one who expects to hire, sign large contracts or sell the business, a company licence is better. The permit's advantage is simplicity: no share capital, no memorandum of association and no entity to run. Its limits are that it's personal to you and its activity list is set by the issuer.

A company licence earns its cost when a client's procurement team asks for a company contract, when you need more than one activity on the same licence, or when you want a second person on your payroll. One counter-case: if your income is modest, your clients pay you personally and nobody needs a corporate counterparty, a company adds filings without adding anything you'd use.

If you're weighing a free zone for the company route, the question of which zone fits a consulting practice is covered in Qawi's guides on SHAMS and on choosing between free zones.

Do freelancers pay corporate tax in the UAE?

A freelancer who is a natural person pays corporate tax only if total turnover from the business exceeds AED 1,000,000 in a calendar year. Cabinet Decision No. 49 of 2023, effective 1 June 2023, sets that line, and it excludes wages, personal investment income and real estate investment income from the test regardless of amount.

AED 1,000,000: calendar-year turnover above which a natural person's business income becomes subject to UAE corporate tax. Source: Cabinet Decision No. 49 of 2023, Article 2, checked 8 October 2026.

A company has no equivalent person-level carve-out. Under Federal Decree-Law No. 47 of 2022 a company is a taxable person and registers with the FTA through EmaraTax, with a zero rate on the first AED 375,000 of taxable income and 9% above it (we couldn't confirm the rate bands from a current FTA or Ministry of Finance page on this check, so confirm them on tax.gov.ae before you rely on them). For a consultant billing under AED 1,000,000 a year, the permit route can therefore avoid corporate tax registration altogether, while the company route still needs it.

Turnover means gross income, not profit. Say a consultant invoices AED 1,150,000 in a year with AED 300,000 of costs: the profit is AED 850,000, but the turnover is above the line, so registration is triggered.

When do I need to register for corporate tax or VAT?

A natural person must register for corporate tax by 31 March of the year after turnover first exceeds AED 1,000,000; the FTA states an administrative penalty of AED 10,000 for missing that deadline. For 2024, the deadline was 31 March 2025 and the return was due by 30 September 2025.

Add up your gross business turnover for the calendar year, excluding wages and personal investment income.
If it exceeds AED 1,000,000, log in to EmaraTax and register for corporate tax before 31 March of the following year.
Separately, test your taxable supplies over the previous 12 months against the VAT thresholds below.
If VAT registration is required, apply on EmaraTax and start charging VAT from your effective registration date.

Tax	Threshold	Basis
Corporate tax (natural person)	Turnover above AED 1,000,000 in a calendar year	Cabinet Decision No. 49 of 2023
VAT, mandatory	Taxable supplies and imports above AED 375,000 in the previous 12 months, or expected within the next 30 days	FTA
VAT, voluntary	Above AED 187,500 of supplies, imports or taxable expenses	FTA

As of October 2026. If you'd rather not track these dates by hand, the free UAE compliance calendar lists them for your company: a free calendar of your company's UAE tax and compliance deadlines, personalised from a few questions, as a PDF and calendar file.

What do most guides not tell you?

The permit price is rarely the whole price. A June 2018 Khaleej Times report on Dubai's GoFreelance launch quoted an annual fee of AED 7,500 for the permit, with a three-year visa at AED 3,250 extra. We haven't verified that either figure is current, so treat it as a reminder to ask for the visa and renewal costs separately.
Activity lists decide eligibility. A permit for media or education roles won't cover a management or tax consultant, so match your service description to the issuer's list before paying anything.
Banks look at the structure. Whether a given bank will open an account for a permit holder, and on what terms, is the bank's decision; ask before you commit to either route.
Turnover includes everything the business bills, not just consulting. Reselling software or taking commissions on the side counts towards the AED 1,000,000 test.

Can a freelancer get a long-term visa?

A freelancer or self-employed person is one of the eligible categories for the UAE Green visa, which u.ae describes as a renewable residence visa valid for 5 years and held without a sponsor. The u.ae page doesn't state an income requirement, so check the ICP service page for the current criteria before you plan around it.

Which deadlines apply to your company?

Whichever route you choose, the dates that matter are renewal, VAT, corporate tax and any audit requirement. The free UAE compliance calendar lists the ones that apply to your company, personalised from a few questions, as a PDF and calendar file.

Frequently asked questions

Can I get a Golden Visa through my company? Eligibility depends on the specific Golden Visa category and the issuing authority's current criteria, not on holding a licence alone. Check the criteria on u.ae and with the issuing authority before you assume a company licence qualifies.

Can I get an investor visa through my company? The u.ae Green visa page lists investors and business partners as one eligible category, alongside freelancers and skilled workers. Whether you qualify depends on the current conditions set out on the ICP service page.

How many visas can I get with a free zone licence? It depends on the free zone and the licence terms; SHAMS, for example, states up to 50 visas per licence, allocated according to business needs and structure. Ask your free zone for the quota in writing.

Can an offshore company open a UAE bank account? That's up to each bank and its onboarding policy, not a rule set by the licence. Ask the bank before you set up the offshore structure.

About Qawi · Qawi is a corporate services firm licensed in the Sharjah Media City (SHAMS) free zone, handling company formation, visas and PRO, bookkeeping, VAT and corporate tax for UAE businesses. Guides are researched from FTA, Ministry of Finance and free zone sources. Qawi on LinkedIn

Sources

Last checked: 8 October 2026

This is general information, not tax or legal advice for your specific situation.