Perhaps you are one of those people who has what it takes to have a company of your own and still work in the company of someone else. However, if you want to start a business while being employed in Dubai, you can do so by meeting certain requirements. Although the process can be challenging, with our help you can achieve your goal of being an entrepreneur.
In this article, you will be able to know the necessary steps so that you can establish your company, even if you work for another. Likewise, we show you how to obtain specific documents and carry out the necessary procedures to start your business. Next, you can find each of the mentioned aspects in detail:
- Can you start a business while being employed in Dubai?
- What are the steps you must follow to start a business while being employed in Dubai?
- The MOA and the AOA
- What happens if you do not get the NOC from your current employer?
- How can you get an instant license in Dubai?
- How can we help you start a business while you are employed in Dubai?
1. Can you start a business while being employed in Dubai?
The simple answer to this question is yes, you can start a business while being employed in Dubai. However, you will need a No Objection Certificate (NOC) from your employer, unless you set up your business in certain free zones. Surely, can be hard to obtain this certificate from your employer, depending on various aspects.
In some companies, depending on the type of work you will be doing, the employer may reject your application. In many cases, it can refuse to deliver the NOC for reasons of competition, security, and trade secrets, among others. For example, they may consider that you may take away some of his current clients and refuse to hand over the NOC.
On the other hand, your boss can more easily provide you with the certificate if your company does not work in the same field. Therefore, obtaining the NOC of your employer will depend on many aspects, which does not mean that you will not obtain it. Though, there are alternatives for you to start a company of your own in the UAE.
2. What are the steps you must follow to start a business while being employed in Dubai?
As we mentioned above, the first thing you need to start a business while being employed in Dubai is to get the NOC. In addition, you must obtain a business license before you can begin your new company. In the case of the NOC, it is at the discretion of the employer since the company does not need to grant it.
2.1 What is a NOC and what are its conditions?
It is a letter in which the issuer has no objection regarding the procedure that the applicant is going to carry out. As well, this is not a document that has any kind of complexity, on the contrary, it is a simple certificate. You just need to clearly state everything you need to make the process easy to execute.
However, it must include important information such as an official letterhead of the company where the interested party works. At the same time, it includes the date of issue, address, and the personal data of the applicant, among other data. You must address this request to the different departments of the UAE and must specify the reasons for its wording.
2.2 Characteristics of a NOC in the United Arab Emirates
Commonly, the No Objection Certificate has the characteristics that are detailed below:
- Your employer or sponsor in Dubai must issue it.
- You must write the document in Arabic as well as in English.
- The employer is the one who decides whether or not to deliver the No Objection Certificate. This is because the law does not require that your employer deliver the said certificate.
If the employer refuses to give you the NOC, you can obtain a work ban. However, the employer can request the lifting of the prohibition based on your salary offer and professional qualification.
2.3 How to make the formal request for the NOC
Below, you can see the steps you need to take to request a No Objection Certificate:
- Apply for the NOC through the official website of Dubai Trade.
- Submit the necessary documentation.
- Pay the certificate application fee of AED 500.
- Obtain final approval from the Emirates Department of Economic Development (DED).
- When obtaining the No Objection Certificate, you must keep it in the private registry of the company.
The documents required to make the request are:
- Copies of the passports of all the partners of the company you want to form.
- Guarantee of having a minimum capital of AED 50,000.
- Copy of the name reservation of the new company.
- Endorsement letter signed by the UAE partner.
- A copy of the Memorandum of Association (MOA) and Articles of Association (AOA) of the company you are going to form.
This way, once you get your No Objection Certificate, you can start your business anywhere in the UAE.
3. The MOA and the AOA
To get the NOC that allows you to start a business while you work for another companyyou need the MOAs and AOAs. In the case of the former, it determines both the scope and the limitations of the business. In addition, the MOA defines the rights of the members of the company and the relationship with them.
On the other hand, the Articles of Association are what determine the business management rules.
3.1 What does a Memorandum of Association contain?
UAE legislation establishes that an MOA must have the following clauses:
- The company name clause: this contains the name of the company with the appropriate suffix.
- The clause that determines the object with which the company deals, can be modified as the company grows.
- The following is the one that determines the place where the company will carry out its activities while defining the geographical limits.
- The capital of the company, how many shares it owns, and how they will be divided.
- The responsibilities of each of the members of the business with the limitations (unlimited, limited, or owned by the government). As well, like that of the shareholders related to the number of shares owned by each one. Of course, this only applies if the company has limited shares.
4. What happens if you do not get the NOC from your current employer?
Now, what if you want to start a business while being employed in Dubai and your employer did not grant the NOC? Many employers are willing to allow their employees to have a side business but others do not allow it. This is commonly due to the security and compliance policies they have put in place.
However, this does not mean that you cannot establish your own company in Dubai or another Emirate. As a result, by not having a No Objection Certificate, you can choose the following:
4.1 Using the visa of your spouse
You should know that you cannot start a business in Dubai if you are already working in another company, using the same visa. As a result, if your employer has denied you the NOC, you can open your business using the visa of your spouse. In this case, this person must hold the position of General Director of your new business.
4.2 Choose to establish your new business in a free zone
If the previous option does not apply to you, you can choose to open your business in a specific free zone. There are several free zones in the United Arab Emirates where you can establish your business, for example:
- Sharjah Media City.
- Fujairah Creative City.
- Umm-al-Quwain (UAQ).
- Fujairah Free Trade Zone.
Any of them is good, depending on the business you want to carry out and the functionality needs. Also, freelancers do not need to apply for a NOC from their clients to start a business in Dubai. This means that they can continue working for the contracting company and have their own business without difficulties.
4.3 Request an instant license
You can start a business while being employed in Dubai with such a license issued by DED. In this case, you will be able to carry out your commercial activities according to the guidelines dictated by the government. For this option, you do not need to send any type of physical documentation.
5. How can you get an instant license in Dubai?
To start a business while you work in another company, you will need an instant license issued by DED. For this, simply follow the steps below:
- The first thing you need to do to get this license is to visit a DED counter. However, if you want to go through the process yourself, you must obtain the UAE Pass. After completing this process, you must update the business profile of your company on the DED website. This is important for the UAE government to verify your legal status in the Emirates.
- The next step is to create an account on the web portal of that department according to the requirements.
- Next, you must carry out the necessary steps to obtain your instant license on the same website. Thus, you must provide the name of the business, the list of shareholders of the same, and the commercial activity that it will carry out. In addition, you must include the details of your sponsor in the United Arab Emirates.
- After this, you must sign the electronic MOA and submit it for approval by the Department of Economic Development.
- Your partners will receive an instant consent message so they can make the approval.
- Finally, you must generate proof of payment of the commercial license and pay the corresponding fees.
With this last step, you will be ready to obtain your license and begin your commercial activities.
5.1 UAE PASS
To carry out this process, you must do the following:
- Download the UAE PASS app on your smartphone.
- Scan your Emirates ID to start the verification process.
- The next step is to check all the information and establish a numerical code (pin), which you must not share with anyone.
- Go to a UAE PASS kiosk for final verification.
- Insert your Emirates ID into the self-service machine and follow the instructions.
- Finally, scan your fingerprint to obtain the entry credentials for the UAE PASS.
6. How can we help you start a business while you are employed in Dubai?
Starting a business in the UAE, while working for a company, involves your employer giving you a NOC. In case you do not receive the said certificate, you can choose to create it with a spouse visa, or in a free zone. You can also do it with an instant license, and it is best to have experts to help you with this. That is what we do!
Our organization provides you with the best help you may need to start your business smoothly, our Professional Employment Organization solutions will help you enhance your operations right away.
Furthermore, we have the best professionals in Human Resources management and payroll outsourcing at your disposal when you need them. Likewise, if you want the best Middle East Immigration services, we have what you need.
Need more information on how you can start a business while being employed in Dubai? On PEO Middle East, we can answer any questions you may have, so contact us by phone at +971 43 316 688. You also have at your disposal the email [email protected] so you can write to us whenever you want.
Furthermore, you can also submit your CV or resume to thetalentpoint.com website. On this site you can apply to work in our organization. Similarly, you can send an email with your CV to [email protected]. We will make sure to review your information and connect you with the best job opportunity in the UAE!