Get a Holiday Home License in Dubai

by Sweta Bose 16, Mar 2023

holiday home license dubai

Like in many other major cities, the rental of vacation homes and short-term accommodations was once solely under the authority of powerful hoteliers and corporations. However, this is no longer the situation due to the growth of websites like Airbnb and comparable ones. 

Anyone who can now afford even one prospective rental property will be able to earn a sizable income. Continue reading to learn how to obtain a holiday home license in Dubai.

Due to the industry's potential profitability, it is expected that just Airbnb's market share in Dubai alone generates over USD 101 million annually. In pricey cities like Dubai, where real estate is extremely expensive, properties posted on websites like Airbnb frequently have nightly rates that are lower than those of conventional hotels. 

In reality, it is so well-liked that listings in the Emirate recently rose by nearly 70% year over year. In Dubai, it is illegal to advertise properties on websites like Airbnb without a license. 

The great news is that you can easily get this license and any other approvals and visas you might need with the proper assistance. 

How to Get a License for a Holiday Home in Dubai?

You must complete a few crucial measures in order to obtain your license for your holiday home business setup in Dubai. Working with a company formation expert can make the procedure easy and hassle-free.

Let's examine it piece by piece.

  1.  Describe Your Company's Operations

First things first: It's crucial to be certain of your selected business activities before beginning your enterprise in the United Arab Emirates. By skipping this process, you run the risk of incurring fines or even having your license suspended.

From the official list provided by the Dubai Department of Economic Development (DED), choose the events you want to participate in. A company that rents out vacation homes would come under this category.

  2.  Choose a Trade Name

The next step is choosing a name for your business. It's critical to be aware of the rules because the UAE is pretty strict about company names. 

In essence, you must refrain from using any words that might be construed as derogatory or profane. Any name that is already registered by a reputable organization must be avoided.

Make sure not to shorten your name if you're naming your business after yourself. Of course, you must also make sure that you may still register under the chosen company name. 

If you decide to work with a business formation professional, this element of the procedure, along with many others, goes considerably more smoothly.

  3.  Prepare the Essential Documents

You must submit an application for your trade license before you can begin. You must provide the following:

  • An application that is fully completed and error-free
  • Two color passport pictures
  • A copy of the putative owner(s)' passport, and 
  • Information about your property.

To start trade, you must also need permission from the DTCM (Department of Tourism and Commerce Marketing). The DTCM, which is a division of Dubai Tourism, is the organization in charge of planning and promoting Dubai's tourism industry.

Your property must be registered, and it will periodically be examined to make sure it complies with the regulations. Your rental property should show your DTCM certificate of registration.

  4.  Apply for Your Visa 

If you wish to operate a vacation rental business in Dubai, you will undoubtedly require a UAE visa. Working with a company formation professional here enables a quick and simple process. 

A business formation expert can assist you in finishing this process concurrently with your licensing application to speed up the process. If you currently have any employees, you may also apply for visas for family members or domestic help in addition to your UAE residence permit. 

Depending on the size of your company and the location you have selected to open up shop, you may be eligible for a certain number of visas.

  5.  Pay the License and Other Costs

Your final overall cost is ultimately determined by a number of fees. Prices might vary greatly. 

Therefore, the only approach to acquire an estimate that is truly accurate and customized for your particular business is to get in touch with us. We can provide you with the most recent pricing data.

In essence, you would be looking at a DTCM approval cost, a permit price, and an annual registration fee (which would be around AED 1,500). (Based on the number of rooms that you are renting – approximately AED 300 per room per year) *. 

Last but not least, there is a tourism fee that ranges from 10 to 15 AED for each bedroom*.

*Prices are subject to change. Kindly connect with us for confirmation.

Advantages of Starting a Holiday Home Company in Dubai

The advantages of renting a vacation house in Dubai are numerous. The scale of the market comes first; over 15 million people visit Dubai annually. 

Due to these and the numerous other occasions the Emirate frequently hosts throughout the year, Dubai is constantly prepared to host millions of tourists in need of lodging.

Are You Prepared to Set Up Your Holiday Home Company in Dubai?

This blog should have demonstrated that opening a vacation rental business in Dubai doesn't have to be a particularly difficult process if you have the necessary information. Nonetheless, some prior understanding of the procedure is necessary. 

Also, it's crucial to keep in mind that the application procedure is only simple if your license application is finished and error-free at the time of submission. We are a group of experts in company formation that are passionate about helping ambitious business owners and SMEs realize their aspirations.

In addition to managing your license application, Commitbiz can help you open corporate bank accounts and provide advice on the best financial institution to meet your unique needs. We can manage all government procedures, approvals, work permits, and the Dubai Visa Services needed to conduct business in the Emirate. 

In other words, our professionals can form your company on your behalf, apply for your license and visa, and handle all the necessary paperwork, freeing you up to focus on running your business. So, why wait? Contact us right away!

FAQs

Which authority issues a license for starting a holiday home in Dubai?

The DTCM (Department of Tourism and Commerce Marketing).

What are the primary documents required to obtain your holiday home license in Dubai?

The following documents are essential:

  • An application that is fully completed and error-free
  • Two color passport pictures
  • A copy of the putative owner(s)' passport, and
  • Information about your property.

Why is it necessary to describe the operations of a holiday home company in Dubai?

By skipping this process, you run the risk of incurring fines or even having your license suspended. From the official list provided by the Dubai Department of Economic Development (DED), choose the events you want to participate in.

A company that rents out vacation homes would come under this category.

Why is starting a holiday home in Dubai advantageous?

The advantages of renting a vacation house in Dubai are numerous. The scale of the market comes first; over 15 million people visit Dubai annually.

Due to these and the numerous other occasions the Emirate frequently hosts throughout the year, Dubai is constantly prepared to host millions of tourists in need of lodging.

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