Can you start a business in Dubai while being employed in Dubai?
Can you start a business in Dubai while being employed in Dubai?
The UAE guarantees that its workforce is content in their jobs and has a healthy work-life balance. To guarantee that their staff is infused with excitement and the desire to become productive, firms in Dubai use an employee-first strategy. Many employees, on the other hand, desire to start a business while working full-time.
The employer’s NOC is required to do so. After obtaining the NOC one can apply for a trade license under their visa.
The employer can accept or reject your application for NOC however you can still start a business. Many free zones do not require submission of a NOC to start a business while still staying a legal employee in Dubai.
How to start a business in Dubai while being employed?
While working, it is advised that you apply for an instant license to start your firm. Here are the fundamental stages to getting your business off the ground.
1. You can get an instant license at a DED desk. You’ll need the UAE pass if you want to apply on your own. Use your Emirates ID to register on the official portal. Then go to the DED website and get your business credentials updated. This is required to make the government bodies aware of your legal status in the Emirates.
2. Register on the DED website and fill out the needed information. To make the process go more smoothly, you may hire a business consulting agency.
3. To acquire your immediate license, follow the steps outlined on the DED website. The company’s trade name, the names of its stakeholders, and your business activities must all be supplied.
4. Sign the electronic/manual MoA and submit it for approval to the department.
5. It is necessary to obtain the approval of business partners. All of your business partners will receive a text message.
6. To pay for your license, create a payment voucher. Once it’s up and running, make the required fees and the procedure is complete.
Why is it important to obtain a NOC?
It is recommended that you get a NOC whether your firm is based in a free zone or on the mainland, or if your enterprise will be located in either. A certificate will grant you immunity in the event of a future dispute.
How to obtain a NOC?
An employee who wishes to acquire a NOC must complete the procedures below:
- Submit a request via the Dubai Trade Portal.
- Provide the necessary papers.
- Pay the AED 500 NOC issuing cost.
- Obtain Department of Economic Development permission for a NOC.
The NOC must be stored in the current company’s records once it has been approved.
Essential documents to obtain a NOC
The following documentation must be provided to get a NOC from the existing company:
- Copies of all partners’ passports
- a copy of the company’s reservation of name
- Articles of Association (AOA) and Memorandum of Association (MOA) copy
- AED 50,000 bank or cash guarantee
If one receives a NOC from the present firm, he or she will be able to start a business in any area of the UAE. If this is not the case, there are still free zones that do not require a NOC. So the question isn’t whether an employee has a NOC or not. The true question is whether or not one is prepared to take the reins as an investor.
Opening a company without a NOC
No company is bound to approve your NOC. Even though most employers approve the NOCs of their employees, some do not. This is due to compliance and security reasons. However, it is still possible to open a company in Dubai by following the steps mentioned below.
1. Use your spouse’s visa
If your NOC isn’t approved and you are in UAE with your family or spouse, you can use their visa and name them as the managing director of the company as it is illegal to open a business with the same visa in Dubai if you are already employed.
2. Apply for a DED instant license
You can apply for an instant license to carry out your business under special government-maintained guidelines. No physical documents are required in this case.
3. Choose the appropriate Freezone
You can open a company in one of the following free zones-
- SHAMS Freezone
- Creative city Fujariah
- Ajman Freezone
- Um-Al Quwain Freezone
- Fujairah free trade zone
These free zones do not require a NOC certificate from employed people to start their business ventures.
Freelancers do not require NOC from their clients. They can run their own business in parallel to working with their clients.
How Radiant Biz helps you
In matters like business setup, people tend to get confused and get in chaos due to several rules and requirements. This is the time when people tend to look for an expert. A lot of chaos can be avoided if guidance is taken from the very beginning. Every venture may have unique requirements like location, customer convenience, logistical feasibility, and banking services.
We at Radiant Biz strive to understand these unique precepts and provide expert and reliable consultation to our clients with updated laws and governing regulations, awareness of their rights, and cost-effective business solutions tailor-made to their business needs and budget.
