In the world of business, side jobs, side hustles, and sideline businesses are not novel concepts. In the wake of the COVID-19 pandemic, many people around the world were forced to take on second jobs. Several changes have been made to the UAE’s business regulations and visa laws in an effort to diversify its income away from the oil and gas sectors. There is no barrier to starting your own business, even if you work full-time for another company in Dubai. Here’s everything you need to know about a business set up in Dubai with a local company registration agent.
No Objection Certificate And Why You Need It?
The UAE’s labour laws allow private company employee to start their own business while still working full-time by obtaining a No Objection Certificate (NOC) from their employer. There is one caveat: it is entirely up to the employer whether to approve or reject the NOC letter application requested by its employee.
A No Objection Certificate letter is a legal document that can be issued to an applicant by any agency, company, organisation, or institution. The purpose of the NOC letter is to indicate that the issuer has no objections or contractual obligations to the procedures or activities that an individual will undertake. An employee may request a letter of authorization from their employer’s human resources department for future endeavours and visa purposes.
Reasons To Get The NOC Letter In Dubai
It is critical to understand when, how, and to whom NOC letters can be applied and used. Prior to the recent changes to business laws, employees who wanted to start their own business while still working had to present a No Objection Certificate from their employer and visa sponsor to the Dubai Department of Economic Development (DED). This requirement was removed as a result of changes in business laws, allowing employees to take on part-time new jobs. However, a NOC letter from the primary employer is sometimes required for secondary employer and visa purposes. Other reasons for obtaining a NOC in Dubai include;
- Opening specific types of business bank accounts or internet accounts
- Used to obtain a UAE driving licence and purchase automobiles.
- Adding/renewing activities to your business
- Bringing on a business partner
- Establishing a branch of your company
- When transferring from one privately owned company to another
- To lift a labour prohibition
- Certain visa applications, immigration requirements, and other inquiries
Starting A Freelance Or Any Business In Dubai
Dubai allows full-time employees to start freelance businesses. In Dubai, freelancers can obtain a business license and permit either through the Department of Economic Development (DED) or from a free zone specifically designed for freelancers. Any other type of business that you wish to start in Dubai can be licensed through the free zones where you can get a license, regardless of whether it is commercial or trade.
The process of starting a new company while working in Dubai can be rewarding and lucrative if it is done properly. Business licences and company formation in the UAE are designed to be easy to navigate by the UAE government. In order to launch your new company smoothly and quickly, it is imperative that you understand the No Objection Certificate (NOC) and collaborate with the appropriate government agencies. While it should be possible, it will require some effort and knowledge of the region, its markets, and its customs and regulations.