If you’re doing contract work for a firm here, do you have to set up your own entity? Or can you just be paid into a bank account?

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It depends on the nature of your contract and engagement with the firm I think. You’re asking 2 questions in 1. “Do I need my own entity” and “can I get paid into my personal account”

Option 1 (most common) is going through a broker in which case the broker doesn’t care and will just send you the money wherever you ask them to. However, if you use a personal account you must have a Freelancer license or something to be in the clear. On the other hand, if you have an entity setup and ask the broker to transfer money to your personal, the bank will whip you because you can’t use it for business activity and will have to open a business bank account.

Option 2 (going directly with firm) almost always requires a business to be setup so that you can establish a business relationship and a solid agreement and they also don’t care which bank account to send money to.

I’m honestly not sure what are the pros/cons of having a freelancer license vs a business entity though, and would be great to see responses about that.

smartlike

I do have my own business setup in UAE. You need to have a license, which will depend based on the activity of the company. This will also impose a certain name. Once you’re sorted with the business license and visa ~2weeks (unless you already have a sponsorship, in which case you will likely have to get a NOC), you can apply for a business bank account. Easiest is WIO, but still takes 3weeks. For ENBD, it I am not wrong you need to deposit 100k AED. I don’t really know, I went for WIO.

Search for DED cafes and see one around you. You’ll find a gov representative to help you or answer your questions. Or find a PRO who won’t scam you and he’ll sort you out quickly.

GL

likesmart

I know so many freelancers who do business without a license and get paid to their personal bank account, and for years.

If its a short gig, and the company you’ll do the work for is fine, then you probably dont need a business setup.

helpful

Despite the fact this is clearly illegal and can lead to real issues - especially now with reinforced AML checks and VAT / Corporate tax aspects. I would not risk to be honest…

Thanks- roughly what was cost of setup to get? Rana he? All these advertised services and wondering if it’s cheaper to do on your own.

Around 15-20k AED first year and not sure for renewal. Use IFZA directly

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