The UAE ensures that its workforce is happily employed and enjoys a work-life balance at good packages. The companies in Dubai follow an employee-first approach to ensure that their workforce is imbibed with enthusiasm and the will to become productive. However, many employees want to start a business while being employed to explore a legal side hustle.
To do so, all you need to do is obtain an NOC (no objection certificate) from your employer and apply for a trade license under your visa.
Note that it’s up to your employer’s discretion to accept or reject your NOC application. Now, you must be wondering, “Can I start my business while being employed if the NOC request is rejected?” The answer is YES. There are several free zones in the UAE that don’t require you to submit an NOC for launching your business while still being a legal employee in Dubai. The best way to go about it is by partnering with legal advisors who guide you throughout this process.
How to start a business in Dubai while being employed?
It is recommended to apply for an instant license to start a business while being employed in Emirates. Here are the steps you need to follow:
- You can visit a DED counter to get an instant license. However, if you wish to apply on your own, you need to obtain the UAE pass. For doing so, you need to register on the official portal using your Emirates ID. Once done, you need to visit the DED’s website and update your business profile. This is a critical step to ensure that the government bodies are aware of your legal status in the UAE.
- Next, you need to create your account on the DED’s website by providing the required details. You can take the help of Shuraa’s business consultants to make this process smooth and risk-free.
- You can then follow the step-by-step process on the DED website to acquire your instant license. You’ll need to provide the trading name of your company alongside the list of stakeholders and the business activities that you wish to carry out. Don’t forget to mention the details of the UAE sponsor that you’ve partnered with.
- Post that, you will have to sign the electronic MoA and submit it for the department’s approval. You can do this this manually as well.
- You’ll also need to provide the approval of your business partners. A message of consent is sent automatically to all your partners.
- The last step is to generate the payment voucher for your license. Once the voucher is active, make the necessary payment and you’re done.
Why obtain an NOC?
Whether your employing company is situated in a free zone or mainland, or your venture will be located on either, it is suggested that you obtain an NOC. The certificate from your existing sponsor would provide you with an immunity in case any future dispute arises.
How to open your company without the NOC?
Companies have their requirements and aren’t bound to approve your NOC request. While many employers in the UAE allow their employees to enjoy a legal side-business, some reject the application due to compliance and security policies. However, you don’t have to worry. You can still launch your company in Dubai by following the methods given below:
Utilize the visa of your spouse
If you’re in the UAE with your family and your NOC application isn’t approved by your employer, you can use your spouse’s visa to open your dream company. Remember, it’s illegal to start a business in Dubai if you’re already employed, and you open your company with the same visa. Therefore, you should utilize the visa of your spouse and name his/her as the Managing Director of the new business.
Apply for a DED instant license
You can obtain an instant license from the DED to do your business activities under special guidelines maintained by the government. In such a case, you don’t need to submit any physical documents, and it’s better to get in touch with the business setup consultants in Dubai to obtain the instant license.
To start a business while being employed, choose the appropriate free zone
You can start a business while being employed even if your NOC is rejected and you don’t have a spouse in the UAE. How? Open your company in any of the free zones mentioned below:
- SHAMS (Sharjah Media City) free zone
- Creative City Fujairah
- Ajman free zone
- Umm-al-Quwain (UAQ) free zone
- Fujairah free trade zone
You can choose any of these free zones depending on your business activities and functional requirements. The best part is that none of these regions require a no-objection certificate from the employed people to launch their venture in the UAE. Furthermore, freelancers don’t need to acquire the NOC from their clients to start a business in Dubai. They can continue to work for their customers and run their license-based business in parallel without any trouble.
Shuraa – your reliable business partner
Starting a business while being employed is legal in the UAE, given you follow the guidelines to do so. You can’t violate the laws by opening a company without obtaining the NOC from your employer in the restricted regions. However, when you consult with Shuraa Business Setup, all your worries come to an end. The business experts at Shuraa provide end-to-end assistance for the seamless establishment of your business. Therefore, if you want to start a business while being employed in the UAE, your first step is to get in touch with us.