The Russian-style "IP" (individual entrepreneur) form does not exist in the UAE, but there are several close options for those who work alone or with a small team.
Options
Sole proprietorship (individual entrepreneurship)
A business run by an individual. The owner is liable for obligations with all personal assets. It suits services and trades on the mainland. For foreigners, availability and conditions depend on the type of activity and the rules in force, so they must be confirmed.
Freelance permit
Issued in a number of free zones to self-employed professionals: designers, consultants, marketers, developers. It often includes a visa and a workspace. It suits you if you work alone and want a low entry threshold.
Single-shareholder company
Free zone: FZE (company with one shareholder). Mainland: an LLC with a single owner. This is a separate legal entity with limited liability; it is better suited to scaling and to dealing with banks.
Comparison
- Liability: in a company it is limited to the capital; in a sole proprietorship it is not
- Bank: banks assess companies and freelance permit holders differently; a legal entity usually has a better chance of getting a normal account
- Visas: a freelance permit gives one visa; a company gets visas according to its office quota
What to choose
- If you work alone and your work is services: consider a freelance permit
- If you need employees, partners or investors: a company
- If your clients are in the UAE: check mainland
- If your clients are abroad: a free zone is more often suitable
Taxes
Tax matters depend on the structure of the business and your country of residence. They are best discussed with a tax adviser.
We will select the form for your activity: company formation.