In this era, the first question popups in everyone’s mind who is in UAE is can I start a business while working full time in UAE? The answer is YES, in this article you will understand how and what are the things to focus on.
You’ve got a promising business idea, yet you can’t afford to quit your stable job just yet.Â
At Company Setup Consultants, we make entrepreneurship accessible while you stay employed. The process is easier than you think—our team knows the ins and outs of business setup here in the UAE
Keep reading to learn more details about the legal processes you need to follow.
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Is It Possible To Start Business With A Full Time Job?
You can start a business while working full-time in the UAE.Â
Here’s how: First, get a NOC from your employer, as required by UAE labor law. Then, apply for a trade license from the DED for your business type. You can opt for a free zone for full ownership and tax benefits. Follow anti-money laundering rules and register for VAT if your income qualifies.Â
Also, make sure you comply with visa and residency rules for yourself and your business partners.
Getting Started With A No Objection Certificate (NOC)
To start a business while working full-time in the UAE, you need to get a No Objection Certificate (NOC) from your current employer. This document shows that your employer is okay with you starting your own business.
What Is NOC?
A No Objection Certificate (NOC) is an official document from your current employer stating they have no objections to you starting your own business. The UAE government requires this certificate as part of the business licensing process to ensure your new business doesn’t interfere with your job.
How To Get An NOC
Below is a comprehensive look at the whole process involved with getting an NOC.
Apply for NOC via Dubai Trade Portal
You can do this simply in just 4 steps.
- Go to Dubai Trade Portal and log in.Â
- If you don’t have an account, create one.
- Navigate to the section for NOC requests.
- Fill out the form with your personal details and information about your proposed business.
Submit Required Documents for NOC
Now, you’ll need to start preparing the documents. Get the following:Â
- DED trade name reservation certificate and transaction number.
- Undertaking letter from the local owner (needs to be in the approved format).
- Local owner’s employment certificate or ID copy.
- Local owner’s passport and Emirates ID copies.
When you have them ready, just pay and upload them into the Trade Portal’s webpage.
Pay for NOC Issuance
This is the final step. Pay the AED 500 issuance fee via the portal using a credit or debit card. The Department of Economic Development (DED) will review your application and documents, a process that may take a few days. Upon approval, you will receive notification via email. Once issued, save the NOC document in your company’s records for future business processes.
Things You’ll Need To Submit To Your Employer For Your NOC
- Passport copies for all partners involved in the new company.
- A document confirming the reservation of the new company’s name.
- Copies of the new company’s Memorandum of Association (MOA) and Articles of Association (AOA).
- Proof of a bank or cash guarantee amounting to AED 50,000.
- An Undertaking Letter signed by the UAE partner.
Next Steps After NOC Approval
Once you have your NOC, you can move forward with setting up your business. Here’s what to do next:
- Choose a Business Activity: Decide what type of business you want to start. Make sure it complies with UAE regulations.
- Register Your Company: Register your business with the relevant authorities. This includes choosing a trade name and getting initial approvals.
- Apply for Necessary Licenses and Permits: Apply for the required licenses and permits from the DED or the relevant free zone authority. This involves:
- Getting initial approval.
- Registering your trade name.
- Preparing legal documents.
- Securing a physical office space or virtual office address.
- Submitting all documents for final approval.
What To Do When NOC Gets Denied?
If your NOC application is denied, you have other options:
- Use Free Zones: Many free zones in the UAE let you start a business without an NOC. They offer benefits like 100% ownership and tax exemptions. According to our R&D Team, business setup in Ras Al Khaimah and the Dubai Silicon Oasis freezone is particularly easy.
To summarize, you’ll need to do the following to start a business in a free zone:
- Choose a free zone that fits your business activity.
- Register your business by submitting an application and required documents.
- Lease office space in the free zone.
- Receive your business license from the free zone authority.
- Use Spouse Visa: If you are on a spouse visa, you might not need an NOC to start a business. Check if your spouse visa allows you to do business activities.
- Get DED Instant License: The DED offers an instant license that lets you start your business right away without an NOC. The process is simple:
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- Apply for the instant license through the DED website or in person.
- Pay the required fees.
- Get your business license on the same day.
- Partner with a UAE National: Team up with a UAE national who can help you set up the business. This can bypass the need for an NOC.
- Seek Legal Advice: Talk to a legal expert to explore other options and navigate the business setup process without an NOC.
- Explore Online Business Models: Consider starting an online business, which might have fewer legal requirements and can be easier to set up.
Give Business Setup Consultants A Go
Now that you know how to start your business while keeping your current job in the UAE, take the next step towards your entrepreneurial dream!Â
The UAE has many cities that offer affordable business setups.
Need a hand? You can call us at +971 582595164 or +971 45187213, or email us at info@companysetup.ae. Let’s build your business together!