How to Relocate Your UK Sole Trader Business to Dubai: A Detailed Guide

For UK freelancers and self-employed professionals, relocating to Dubai can be life-changing—both financially and professionally. But moving your sole trader business abroad is not as simple as booking a flight and getting a new address. This section introduces the key differences between UK and UAE self-employment structures, outlines why Dubai is a preferred destination, and explains what this guide will help you achieve: a full migration of your income, tax residency, licensing, and invoicing from the UK to the UAE, while staying compliant in both jurisdictions.

Unlike the UK, where you register directly with HMRC, in Dubai you must set up a licensed legal entity. Most sole traders moving from the UK choose between two main options: a freelance permit or a Free Zone Establishment (FZE). A freelance permit is available in select Free Zones such as Shams, RAKEZ, and Dubai Media City. It’s ideal for individuals working in fields like content creation, education, consulting, media, or tech. However, freelance licenses often restrict you to a single visa and may not allow you to operate under a brand name. A Free Zone Establishment, on the other hand, offers more flexibility. It allows you to operate under a business name, employ staff, and scale operations. This route is better suited for sole traders planning to grow, sign business-to-business contracts, or work across multiple sectors. Costs for setup range from AED 12,000 to AED 22,000 depending on visa quota, office space requirements, and Free Zone jurisdiction. We’ll explore how to compare these options based on your field, clients, and growth plans.

Once your license is approved, the next stage is securing your legal residency in Dubai through a self-sponsored visa. This process involves applying for an electronic entry permit (valid for 60 days), undertaking a UAE medical fitness test (blood and chest X-ray), completing biometric registration for your Emirates ID, and receiving visa stamping in your passport. The Emirates ID is your gateway to every essential service: banking, leasing property, telecoms, and healthcare. Some Free Zones allow you to do the business license remotely but require in-person attendance for medical and ID stages. The entire process typically takes 2–4 weeks. If your spouse or children are relocating with you, you’ll need to sponsor their visas separately, and this requires you to rent a property and show a minimum income threshold (often AED 4,000+ per month).

Once your license is approved, the next stage is securing your legal residency in Dubai through a self-sponsored visa. This process involves applying for an electronic entry permit (valid for 60 days), undertaking a UAE medical fitness test (blood and chest X-ray), completing biometric registration for your Emirates ID, and receiving visa stamping in your passport. The Emirates ID is your gateway to every essential service: banking, leasing property, telecoms, and healthcare. Some Free Zones allow you to do the business license remotely but require in-person attendance for medical and ID stages. The entire process typically takes 2–4 weeks. If your spouse or children are relocating with you, you’ll need to sponsor their visas separately, and this requires you to rent a property and show a minimum income threshold (often AED 4,000+ per month).

With your Emirates ID in hand, you can open a corporate bank account in the UAE. Major banks like Wio, Mashreq Neo Biz, and Emirates NBD offer packages for Free Zone entities, but each requires a valid trade license, Emirates ID, office lease or proof of virtual office, and business activity alignment (some banks reject high-risk sectors). Expect compliance checks and an onboarding process that can take up to 3–6 weeks. You’ll then invoice your clients using your Dubai trade license details, receive payments into your UAE bank, and pay for services globally. Note that some platforms (Stripe, PayPal) require business verification updates. You may need to update billing locations or switch to UAE entities for smoother withdrawals.

Every Dubai business must be renewed annually. Renewal includes the business license, visa, and Emirates ID. Expect to pay license renewal: AED 10,000–14,000, visa renewal: AED 3,000–5,000, Emirates ID: AED 1,070. Other costs may include PO Box renewal, PRO services, and health insurance (mandatory). Late renewals result in fines and visa suspension. Also, while Dubai offers great advantages, you’re taking on responsibilities around compliance, reporting, and legal presence. Failure to maintain your business license can result in account freezing or deportation. In summary, relocating to Dubai as a UK sole trader is entirely feasible, but must be executed carefully. From picking the right license to complying with UAE residency requirements and managing your exit from HMRC systems, every detail matters. Done correctly, this move can eliminate income tax liability, elevate your brand internationally, and offer a more entrepreneur-friendly ecosystem to operate from.