This post is for you if you work in the UAE on your employer's visa and want a side business. You will learn what the law says, when an NOC matters, and what the first licence costs. I quote the official pages, so you can check every rule yourself.
Fees as of October 2026. Last updated 13 October 2026. Government fees are each authority's published starting price, checked on 13 October 2026.
| Option | Government fee (AED) | My service fee (AED) | Total (AED) |
|---|---|---|---|
| Ajman (ANCFZ), no visa | 4,888 | 600 | 5,488 |
| Ajman (ANCFZ), 1 visa (for later) | 10,800 | 1,500 | 12,300 |
| RAKEZ | 6,000 | 1,000 to 5,000 | 7,000 to 11,000 |
| Meydan, licence only | 12,520 | 2,500 | 15,020 |
- Ajman (ANCFZ), no visa
- Government fee (AED)
- 4,888
- My service fee (AED)
- 600
- Total (AED)
- 5,488
- Ajman (ANCFZ), 1 visa (for later)
- Government fee (AED)
- 10,800
- My service fee (AED)
- 1,500
- Total (AED)
- 12,300
- RAKEZ
- Government fee (AED)
- 6,000
- My service fee (AED)
- 1,000 to 5,000
- Total (AED)
- 7,000 to 11,000
- Meydan, licence only
- Government fee (AED)
- 12,520
- My service fee (AED)
- 2,500
- Total (AED)
- 15,020
Fee sources, checked 13 October 2026: ANCFZ, RAKEZ, Meydan.
For RAKEZ, my service fee is AED 1,000 to 5,000, depending on your package. Ask me for your exact number on WhatsApp.
Yes, if your contract allows
Yes, in many cases. The first limit is not the free zone. It is your own employment contract.
A common worry is that a job visa blocks you from owning a company. The free zones I checked don't describe it that way. Meydan Free Zone says you can start a business while employed, "as long as your job contract doesn't restrict it". Your contract and the law still apply. So the honest answer is: yes, if your contract allows it.
Some employers forbid outside business in the contract. Some ask you to get written approval first. Some say nothing. You need to know which one you have before you spend a dirham.
What does UAE labour law say?
Two rules matter most. One is about competing with your employer. The other is about working for others.
The non-compete rule
The UAE government portal explains Article 10 of the Labour Law. Employers may add a non-compete clause (a promise not to compete) to your contract. It must be limited by time, place and type of work. It can last up to two years after the contract ends.
So if your side business is in your employer's field, read that clause twice.
Duties while you are still employed
The Labour Law also lists your duties as a worker. Article 16 says a worker must keep the employer's secrets. It also says: "Not working for others, in violation of the provisions hereof and other applicable legislation in this regard". You can read it in the Federal Decree-Law No. 33 of 2021 text on u.ae. That file is an English translation, marked as not official.
In plain words: keep your employer's information private, give your employer the hours in your contract, and don't work for anyone else unless the law allows it. The part-time permit section below covers that.
Do you need an employer NOC?
It depends on who issues your licence. There is no single answer for every authority.
An NOC is a letter from your sponsor saying they have no objection. Here is what two free zones say on their own sites:
| Authority | What its own site says |
|---|---|
| Meydan Free Zone | No employer NOC needed to get licensed, "even if you're still on an employment visa" |
| RAKEZ | A person can be the manager (a named company role) of more than one company, but needs "a No Objection Certificate (NOC) from his current sponsor" first |
- Meydan Free Zone
- What its own site says
- No employer NOC needed to get licensed, "even if you're still on an employment visa"
- RAKEZ
- What its own site says
- A person can be the manager (a named company role) of more than one company, but needs "a No Objection Certificate (NOC) from his current sponsor" first
Sources: Meydan's NOC guide, RAKEZ FAQs.
Meydan's guide adds that an NOC is "generally required only if you plan to switch" to an investor visa. Even Meydan says labour law still applies to you.
For Ajman (ANCFZ), the published FZE document list asks for a passport copy, a photo, and your residence visa and Emirates ID if you live here. It does not list an employer NOC. Rules can change, so I check with the authority before you pay.
My advice: even when the zone does not ask for an NOC, your contract might. Those are two separate questions.
Can I stay on my employer's visa?
Usually, yes. Owning a licence and holding a visa are separate things.
RAKEZ says shareholders "have the option to either apply for RAKEZ visa or be on a non-RAKEZ visa." Meydan says you can launch without switching visas. So you can own the company and keep the visa your employer gave you.
Later, you may want your company to sponsor your own visa. That is a visa change, and it is a bigger step. Talk to me before you start it. Each visa holder also needs an Emirates ID, and a medical test if aged 18 or over.
Working for your own company
Owning shares is one question. Taking a second job is another.
The UAE government portal says a work-visa holder can take a second job "upon getting a part-time work permit from MoHRE". The u.ae list of work permits says a worker may work for more than one employer "after obtaining approval from the Ministry".
What about a freelance permit? The same page says it is for people working "without being sponsored by an employer in the UAE". If your employer sponsors you, it is not built for your case.
So if you plan to put yourself on your company's payroll, ask MOHRE first. I won't guess on that for you.
The cheapest legal way to start
On my list, it is Ajman (ANCFZ) with no visa: AED 4,888 in government fees and AED 600 for my work. That is AED 5,488 in total. It includes no visa, which suits someone who already has one.
The ANCFZ zero visa package lists up to 10 activities and a lease agreement. An activity is the type of work your licence allows, like "IT consulting". If you only need a few, this covers you.
If you prefer a Dubai free zone that says it needs no employer NOC, Meydan's licence costs AED 12,520 in government fees. My fee is AED 2,500, so AED 15,020 in total. More options are in my cheapest free zone comparison.
The licence is not the whole story. Renewal comes every year. Add a visa only when you need it, and see my Dubai business setup cost breakdown for the full bill.
What should I check before I apply?
Do these five things in this order. None of them cost money.
- Read your contract. Look for "exclusive", "outside work", "conflict of interest" and "non-compete".
- Ask HR by email if anything is unclear. Keep the written reply.
- Pick an activity outside your employer's field.
- Ask the free zone in writing if it needs an employer NOC.
- Keep the business off your work laptop and out of your work hours.
Then send me your activity. I check it against the zone's list and tell you the government fee and my fee on separate lines. My business setup service covers the filing from there.
When is it better to wait?
Wait if your contract forbids outside business and HR says no. Wait if your idea competes with your employer. Wait if you plan to take your employer's clients with you.
In those cases, a licence today can cost you more than AED 5,488. It can cost you the job. Honestly, I'd rather lose the fee than see that happen.
Once you leave, read the non-compete clause again. It can still apply for up to two years after the contract ends.
Still not sure
Send me your activity on WhatsApp, and I will check it against the zone's list. To see the fee split for your setup first, try my cost calculator.
This is general information, not tax or legal advice. For your personal case, speak to a registered tax advisor or a UAE employment lawyer.
I set up companies in Dubai and the northern emirates. My fee and the government fee are always quoted separately.
