Is it legal to start a business while working in the UAE?

Apply for an instant license to start a business while working in the Emirates. Follow these steps:

• A DED counter can issue an instant license. If you apply alone, you need a UAE pass. You must register on the official portal with your Emirates ID. After that, edit your business profile on the DED website. This is essential to inform the UAE authorities of your legal status.
• Next, register on the DED website with the essential information.
• You can then get your immediate license by following the DED website's steps. You must list your company's trading name, stakeholders, and business operations. Include the UAE sponsor you partnered with.
• Sign and submit the electronic MoA for department approval. You can also manually do this.
• Additionally, your business partners must approve. All your partners receive an automatic consent notification.
• The final step is creating your license payment voucher. Once the voucher is activated, pay, and you're done.

In the UAE, it is a bit more complex when you start your business while working full-time, by going through a few key steps to ensure that everything is in compliance with the law, and ideally leading to successfully starting your new establishment.

NOC stands for a No Objection Certificate, which you can obtain from your present employer to start a business while being employed. This certificate is significant because, according to UAE labor laws, you are only allowed to work on another job or business outside your primary employment if you acquire your employer's permission. Not having an NOC can cause legal trouble and difficulties with your employer.

• Refer to your employment contract for any conditions regarding launching a business or taking on additional work.
• Discuss your business idea with your employer or HR. Clearly explain your plans, including when and how you will ensure that your new venture does not interfere with your primary job responsibilities.
• Submit a formal NOC application. Be prepared to provide details about your business, such as its type, how it will operate, and how you intend to balance both roles effectively.
• Confirm with your employer that the request has been processed and address any additional questions or concerns they might have.

• Copy of the applicant's passport (member or founder)
• Valid license to live in the UAE and a copy of your Emirates ID
• Certificate for reserving a trade name (if one is already taken)
• Initial approval from the relevant licensing authority

Employers have the legal right to deny or approve an NOC. This doesn’t mean the end of the road for your business. Here are other ways to start a business if your NOC is denied:

• Some free zones do not require NOCs for new businesses. Selecting the right free zone can help you start your own business.
• If you have a spouse with you in the UAE, you can start a company using their visa. It can also be a dependent, such as a family member. You can restructure your business by retaining the position of business partner or managing director.
• As mentioned above, apply for a DED Instant License.
• You can also, as a full-time employee, start a freelance business in the UAE, which does not require a NOC.

Launching a company while employed in the UAE is worthwhile because you can pursue your entrepreneurial dreams while benefiting from the security of your existing job. However, meeting the strict legal and regulatory demands can be both lengthy and complicated. To simplify this process, partner with Kiltons Business Setup Services.

Kiltons offers a full range of business incorporation services, from obtaining the required documentation and approvals to advising clients on available legal structures and licensing options. Their services cater to entrepreneurs ranging from startups to experienced professionals seeking to expand or transition their businesses online.

Our experienced team can help you navigate all the rules for company formation in Dubai without any hassle. With Kiltons Business Setup Services, you can focus on growing your business and fulfilling your entrepreneurial dreams with confidence and peace of mind.