NOC in the UAE

NOC letter from sponsor UAE [2022 Guide]

When setting up in any new jurisdiction, there are plenty of administrative tasks to tackle. And the UAE is no exception. As well as applying for business licences, ID cards and visas, entrepreneurs may also require a No Objection Certificate (NOC) in order to start trading.

In this article, we’ll look at the NOC in more detail, including:

  • No Objection Certificate UAE – meaning
  • Why do you need a No Objection Certificate?
  • When is an NOC in the UAE required?
  • Do you need an NOC to work in the UAE?
  • Do you need an NOC in UAE to lift the labour ban?
  • Do you need an NOC for part-time work in the UAE?
  • Do you need an NOC to start your business while being employed?
  • Why start your company with BIZ?

No Objection Certificate UAE – meaning

A No Objection Certificate – or NOC – is legal document issued in the UAE. It can be issued by an agency, organisation, or other institution.

As the name suggests, an NOC informs parties that the issuer has no objection with the holder conducting a certain action. In most cases, NOCs are issued by employers or sponsors informing government agencies that the holder is free to undertake an activity that may impact the issuer.

Why do you need a No Objection Certificate?

As I’ve already touched upon, NOCs are required to undertake certain activities. It is not a complex or long-winded document. It simply makes clear that the issuer – be it your employer or sponsor – makes no objection to you carrying out one or more of the actions detailed below.

When is an NOC in the UAE required?

 An NOC certificate may be required if you wish to conduct any of the following activities: 

  • Starting a business in the UAE
  • Setting up as freelancer in the UAE
  • Launching a side-gig in the UAE
  • Renewing your business licence
  • Adding or removing a business activity from your UAE business licence
  • Adding a partner to your UAE business
  • Starting a new job in the UAE
  • Opening a branch of your business in the UAE mainland
  • Opening a bank account in the UAE
  • Opening a new internet account
  • Obtaining a UAE driving licence
  • Buying a new car
  • Lifting the labour ban (more detail below)
  • Accessing immigration services

Do you need an NOC to work in the UAE?

Not always. As a foreign worker, you may require an NOC in the UAE when taking on certain roles, transferring to the sponsorship of a new employer or starting your own business while employed.

NOCs may also be required when applying for visas for other countries when you hold a residency visa in the UAE.

With so many potential reasons to require an NOC, it is best to get in contact with the team at Business Incorporation Zone (BIZ) if you think you require one. We will take the time to understand your circumstances before advising on the best way forward.

Do you need an NOC in UAE to lift the labour ban?

Yes. If you wish to re-enter employment after receiving a labour ban, you will need an NOC from your employer.

Labour bans can be applied to individuals who violate UAE labour law or the conditions of their employment contract. According to the official UAE Government Portal, employers can apply to the  Ministry of Human Resources and Emiratisation to impose a labour ban if an employee:

  • Illegally terminated the employment contract or did not observe the provisions of the UAE Labour Law. For example, not respecting the notice period mentioned in his non-limited contract or terminating his limited contract before the end of its duration.
  • Committed any of the violations listed in article 120 of the UAE Labour Law.
  • Worked with another company without obtaining a work permit from MoHRE.
  • Stayed in the UAE after the termination of his employment contract, for any reason, for more than two months without legal justification. 

Do you need an NOC for part-time work in the UAE?

No. This was the case until recently, however changes to labour law mean that employees are free to take on part-time work, in addition to other employment, without requiring a No Objection Certificate.

Do you need an NOC to start your business while being employed?

If you plan to start a new business in the UAE mainland while under employment, then you will usually require an NOC from your current employer.

However, there are now many free zones in the UAE that do not require entrepreneurs to provide NOCs before starting their business. Once again, the best course of action is to contact the team at BIZ. After a short consultation, we advise on the most appropriate business setup in Dubai to suit your needs.

Why start your company with BIZ?

At Business Incorporation Zone, we pride ourselves on giving you the clearest path to business ownership in the UAE. Whether that means advising on whether you need an NOC certificate, helping you apply for your general trading licence or assisting with visas and bank account opening, we are your perfect partner.

We make the UAE company formation process fast, simple and enjoyable. And, as we know that every business is unique, we’ll always take the time to understand what you need from us before advising on the best way forward.

That’s why our business setup solutions are never off the peg. We tailor our services and licence packages to your needs to give you everything you need to succeed. Our services don’t stop after startup, either. We’re always on hand with our business support to help your enterprise thrive long after launch.

Plus, thanks to our BIZ Pay As You Go service, starting a company in the UAE is simpler, faster and more affordable than ever before. If you’re ready to get started, get in touch with our expert team today on 800 BIZ (249), email [email protected], or pop in and visit us at our offices in Dubai and Fujairah.

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