Pros and cons of a RAKEZ freelancer license

10/05/2018

   

Description

RAKEZ has recently launched a freelancer license. If you are a journalist, computer science trainer or event coordinator you can now apply for a RAKEZ freelancer license. 

What is a freelancer?

A freelancer is a professional who will operate as an independent contractor. He is a sole practitioner and shall conduct business in his own personal name. 

What are the disadvantages of a RAKEZ freelancer license?

With a RAKEZ freelancer permit, there will not be any Certificate of Incorporation (CoI), Memorandum of Association (MoA) or partners list. Therefore, the liability will not be limited, and the freelancer will be personal liable for any debts.

A RAKEZ freelancer license will only show one activity and is eligible for one visa only. A freelancer shall not be entitled to appoint staff, obtain additional visas or open any corporate bank account. 

Furthermore, a freelancer is only allowed to hold one freelancer permit at a time and no other RAKEZ licenses. If a freelancer wishes to upgrade his freelancer permit to a full company package, the freelancer permit must be cancelled first. 

What are the benefits of freelancer license issued by RAKEZ?

The RAKEZ freelancer permit could be a terrific opportunity for professionals like writers, translators and trainers to get a license. The registration fees for the license and flexi desk are below 9,000 AED. The freelancer permit needs to be renewed every year. The yearly renewal fees are approx. 8,000 AED. 

The RAKEZ freelancer license entitles for one visa. If the freelancer wants to apply for a visa, the fees are only slightly different. The registration fees including flexi desk and visa are approx. 13,500 AED, but the yearly renewal fees are approx. 9,000 AED only. Therefore, the RAKEZ freelancer permit could be a cost-efficient way to work as a freelancer in the UAE.