Most agencies in the UAE start in one of three ways: a freelance permit, a mainland licence or a free zone company. All three still work, but the trade-offs moved in 2025, when Dubai began letting free zone companies work onshore with a permit, and in 2026, when small business relief for corporate tax was extended.
Freelance permits
- MOHRE issues a freelance work permit, one of 13 permit types, for people working independently without an employer as sponsor.
- GoFreelance in Dubai costs AED 7,500 a year and covers Dubai Media City, Dubai Internet City, Dubai Knowledge Park and Dubai Design District, with hot-desk access. A visa costs AED 4,600 for one year or AED 5,042 for two, plus AED 2,000 for an establishment card.
- twofour54 in Abu Dhabi offers a sole proprietor freelancer licence for media, gaming and entertainment, issued by the Creative Media Authority.
- Ajman Free Zone has a sole professional licence covering 40 categories, with one residence visa.
Mainland
Since early 2021, 100% foreign ownership has been allowed for most mainland activities, with exceptions for activities of strategic impact such as defence, telecoms, banking and insurance. Advertising is not on the restricted list. A mainland company can work with clients across its emirate without extra permits.
Free zones, and the 2025 change
Free zone companies were traditionally barred from doing business with clients onshore in Dubai. Dubai Executive Council Resolution 11 of 2025 changed that with two routes: a branch licence valid for a year, or a temporary permit for up to six months, with separate financial records for onshore work. The resolution sets fees of AED 10,000 a year for a branch licence and AED 5,000 for a temporary permit.
In October 2025 Dubai launched the Free Zone Mainland Operating Permit on the Invest in Dubai platform, for companies holding a Dubai Unified Licence. Its first phase covers non-regulated activities including design, consultancy and professional services, costs AED 5,000 for six months, and opens government tenders and contracts previously reserved for mainland companies. Income from mainland work is taxed at 9% and kept in separate records. Working in another emirate still needs that emirate's licences.
What each choice means for tax
- The 0% free zone rate applies only to qualifying income, mainly from other free zone businesses that actually receive the service, or from a fixed list of activities such as manufacturing, commodity trading and logistics. Marketing and creative services are not on the list, so fees from mainland or foreign clients generally do not qualify. Non-qualifying income above the lower of 5% of revenue or AED 5 million loses the status for that year and the next four.
- Small business relief covers revenue up to AED 3 million and has been extended to tax periods ending on or before 31 December 2029. Qualifying free zone persons cannot use it, and it must be elected each period.
- Freelancers working as individuals are taxable only if business turnover exceeds AED 1 million in a calendar year, and must then register by 31 March of the following year. Late registration costs AED 10,000.
- VAT registration is mandatory above AED 375,000 of taxable supplies and voluntary above AED 187,500.
Which suits which agency
- A solo creative testing the market: a freelance permit is the cheapest start, and corporate tax only applies above AED 1 million of turnover.
- An agency selling mostly to Dubai brands and government: a mainland licence avoids extra permits for onshore work.
- An agency with international clients and a free zone it likes: a free zone company still works, but do not assume 0% tax on agency fees, and add the mainland permit if Dubai clients follow.
- Anyone bidding for government work: check what the tender requires before you choose.
Fees vary by activity and change often, so confirm current costs with the authority before you commit. The corporate tax calculator on this site estimates the tax on a given profit, including small business relief.
