Dubai is a global business hub which offers immense business opportunities to entrepreneurs and businesses. The Emirate celebrates entrepreneurship of all kinds, starting from small businesses to large corporations. Business-friendly policies, dynamic location, tax-friendly initiatives, and a vibrant economy make it an ideal place for business setup in Dubai.
With the trend of home-based business in Dubai on the rise due to the ease of doing business and low operational costs. This is an opportune time. If you are looking to start one, it is essential to understand the legal requirements and steps involved with availing a business license.
Back to topWhy Start a Home-Based Business in Dubai?
When it comes to starting a small business like say home-based business in Dubai, you need to carefully analyse the reasons. Some of them are listed below:
- Be part of the world’s fifth fastest-growing city and benefit from the rapid economic growth
- Availability of skilled workforce from across the globe
- Cost-effective labour laws
- Seamless documentation and legal procedures
- Tax-free zones for most businesses to maximize profits
- Low operational costs
- Flexibility to set your hours and operate at your own pace
- Easy access to both regional and international markets
Types of License for Home-based Business in Dubai
To successfully incorporate a business in Dubai, you need to understand what kind of business licenses are required. As Dubai offers different types of license based on the chosen business activity, it is important to be fully aware of them.
For a home-based business in Dubai, you must obtain the following business licenses issued from the Dubai Department of Economic Development:
Professional License
This license is great for foreign entrepreneurs who are planning a small business setup in Dubai. It is beneficial if you plan to offer professional services like IT consultancy, legal advisory, accounting and bookkeeping services from home.
Commercial License
This license is essential if you are planning to run a small manufacturing unit or engage in wholesale distribution from home. It enables you in the trading of goods and services.
E-Trader License
If you are planning to run an online business from home, an E-Trader license is required. Easily available to Emiratis and GCC nationals residing in Dubai, it is also available to expats but with certain restrictions. The license enables expats to offer services and not engage in the selling of goods.
Freelancer License
Business registration in Dubai for freelancers is quite simple. All you have to do is acquire a freelancer license. It allows you to operate as a sole trader with low overheads, and the flexibility of working from home.
Back to topStep-by-Step Guide to Obtain License for Home-Based Business in Dubai
Starting a home-based business is a great prospect, however, it requires careful planning and adherence to regulatory standards. Here is a step-by-step guide on how to avail a license to get started.
Step 1 -Choose Business Activity
To obtain a business license in Dubai, you must first choose the business type. As the type of business license varies from activity to activity, it is important to select the activity at the start.
Step 2 - Select Business Structure
In Dubai, you have the option to choose one from the following business structures - sole proprietorship, Limited Liability Company (LLC), and freelancer.
Step 3 - Register Trade Name
The next step involves registering the trade name. It must adhere to Dubai’s naming conventions by not being offensive and conflicting with any existing registered trademarks. You can check whether the trade name is within the regulations as well as its availability through the Dubai Department of Economic Development (DED) website.
Step 4 - Apply for Business License
Once the trade name is registered, you can apply for the relevant business license in Dubai. You can apply for the license either online or by visiting the Dubai DED office. The authority handles all the registration and licensing procedures.
Step 5 - Submit Documents
To complete the application, you must provide certain documents, like copies of passport, Emirates ID, document containing information related to the company and investors, residency proof, and No Objection Certificate (NOC) from the sponsor (for expats).
Step 6 - Pay Fees and Obtain the License
Once you have submitted all the documents, payment of fees needs to be done. The fee varies depending on the type and size of business as well as the jurisdiction. Once the payment is completed, Dubai DED will issue the business license.
Whether you are offering professional services, freelancing, or trading online, Dubai is the perfect place to turn your business dreams into reality. If you are an entrepreneur who wants to get a license to set up a home-based business in Dubai, business setup consultants of Commitbiz are here to help. They can guide you through the entire business process. Connect us to begin your entrepreneurial journey.
Back to topCan an E-Trader license be registered under the name of more than one person?
No, the E-Trader license can be registered only under the name of a single owner.
Can I establish a business through an online portal?
The Government of UAE provides an integrated online platform called ‘Basher’ for establishing a business. It is linked to the local and federal government entities concerned with licensing and economic activities . Using the platform, a business can be established within minutes.
Is an Emirates ID necessary for foreign investors when setting up business in Dubai?
As a foreign investor, an Emirates ID card is not strictly necessary to initiate the process of setting up a business in Dubai. However, you will need to obtain one eventually as part of the process of establishing your residency and legally operating the business.
