The United Arab Emirates (UAE) was previously renowned for its oil and petrochemical products but the business possibilities seem endless now; this is primarily down to the fact that UAE has ramped up its efforts to diversify.
Home-based businesses have seen huge growth in recent times across the globe and UAE is no different either. To showcase the importance of home-based businesses, over 8 million people have been running businesses from home in the United States and UAE is following in the same suit as well.
In addition to the freedom and flexibility, the UAE home businesses also benefit from the low tax environment and simplified company incorporation processes as well. Setting up a home based business in Dubai follows the same processes as a regular business.
Here are some things which you need to keep in mind before you get started with home based businesses.
Pros and Cons of Home Based Business in Dubai
Starting any busy can be a tedious and daunting process. However, it is always important to weigh the pros and cons against each other and come to a rational solution.
Speaking about the positives, there are not many overheads involved when it comes to home businesses. First of all, there is no need to pay rent for your office. In addition to that, when you are working from the house, there are no travel costs to get to your place of work. In order to secure these perks, all you will need is a trade license and a suitable place from your house to conduct your business.
Starting a business in Dubai provides the benefit of having an incredibly supportive environment. The UAE rulers are very committed to supporting and nurturing small businesses and startups; this is primarily done to boost the economy of the entire nation in the long term.
Dubai-store is the first local online marketplace that caters specifically to home-based businesses and SMEs. This goes on to prove that the culture is starting to evolve and Dubai is at the forefront of adopting this change.
When it comes to discussing the negative aspects, there are a couple of them discuss. If you are running a business that requires you to meet a lot of clients then meeting them at the home office might not be suitable. Similarly, most organizations prefer suppliers and vendors to work from formal business premises, though this is increasingly uncommon.
Types of Home Based Business in Dubai
If you lacking funds or simply want to operate a business from home then there are a number of opportunities for you to explore. Here are some options you can choose from:
Teacher / Tutor
Teaching was a popular option for many people who wanted to earn money without investing. This option is great especially if you are particularly good at any subject. With the recent change in the trends due to the COVID-19 pandemic, most tutors are now utilizing online services such as Zoom to teach children. You can also potentially teach children across the globe as well by offering services online.
Social Media Influencer
The rise of Instagram and Tik Tok has paved the way for many people to become social media influencers and earn tons of money. Being a social media influencer has become a standard job for many and people work 8-10 hours for it like any other job as well. Through this, you promote content for various brands and businesses that pay you money. However, you will need to have a large following to reap the rewards to the max.
Video Blog
You can also start a video blog that focuses on unboxing things. There are plenty of channels on YouTube which are making tons of money utilizing the same ideology. Some people tend to review tech products, others do a compilation of Top Ten videos in various fields such as actors, movies, and so on. There is a lot of variety and you can take inspiration from other channels and start something of your own the same way.
Graphic Designing / Web Development
Skills are perhaps the easiest way to earn money online. Services such as Fiverr, and Freelancer connect you with people who are seeking different things. If you are good at graphics designing or web development then you are in luck! There is a huge demand for these two fields in the industry. By completing projects, you can boost your profile and get even more projects for the future. You will make a lot of money along the way as well.
Selling through E-Commerce
Entrepreneurs are earning a lot of money by creating e-commerce stores. Like other things, there is a lot of variety to choose from; you can either create a niche store or a general one depending on your ability to source the products. From handcrafted goods to tech products, everything sells. If you have the aptitude to handle the sourcing of the products, doing inventory, and managing orders then this is a highly profitable business you should look at.
Freelancing
Freelancing, in general, is a very simple and profitable thing to adopt. As mentioned earlier, services such as Fiverr and Freelancer connect you with different clients and you can sell what you have to offer. You can either write content, do photoshop projects, development-related projects, video editing, music editing, and so much more. There is a lot of variety to choose from.
Home Based Business Legal Requirements in Dubai
If you decide to establish a company to conduct your business then the process is not only straightforward but also very simple. The process has been designed with the intention to provide ease since not all the applicants involve business-related people.
Here is everything that will be required of you:
- An establishment card from the FAIC
- Membership numbers in both the Chamber of Commerce & Ministry of Human Resources and Emiratization (MoHRE)
- Ability to hire employees, up to 3 work permits will be available
- Renewal of commercial / trade license for over 1000 commercial activities
- Trade name registration
Trade License for Home Based Business in Dubai
The Department of Economic Development (DED) is responsible for generating the Trade License, which enables you to run your small business, SMEs, or a home-run business. Through the Trade License, you can integrate startups and business activities that operate online or on social networking sites within the economic department’s database.
Some benefits, apart from being allowed to operate your business, here are some additional benefits according to the DED:
- It provides the necessary consultations to start a business
- You get Dubai Chairman membership for commercial activities
- You also get benefits from bank facilities
- You get a “Customer Client Code”, which is provided by Dubai Customs and facilities import and export
- An establishment card will be issued to you, allowing you to hire three employees
- You will get temporary employment services
- You will be able to participate in exhibitions, conferences, and training workshops
- Your products will be displayed at the consumer points of sale in the premises of Dubai Economy partners
- Dubai Economy partners will also provide options for a workspace
Criteria of Trade License Registration
Applying for Trade License is imperative for running a home business. However, applying for the Trade License does not come so easily. You need to fulfill some conditions for getting a DED Trade License, and are as following:
- Projects or startups should exist in the Emirates of Dubai
- The project owner must be of 21 years of age
- The trader must have an Emirates ID to complete the registration
- The license is issued for residential sites only
- The trader is allowed more than one license
- The trader is allowed 10 activities per license maximum within the same group descriptions
- DED Trader license is valid for one year and is renewable
- The activity, trade name and social media accounts can be amended as per the requests
Not every business will require you to have a trade license, however. There are some options which we will discuss later in the article which you can choose and not apply for a trade license.
Applying for Trade License
The Trade License requires you to pay the registration fees and the license has to be renewed annually as well.
The DED has some strict requirements when it comes to registration the name of the Trade License. For instance, words such as ‘Allah’, ‘Lord’, or ‘God’ are prohibited. Similarly, you will need to consult the authorities before finalizing your name.
Moreover, any trade name that has already been reserved for a similar kind of activity as yours will not be deemed eligible.
It is also worth mentioning that the trade name should not include the name of an individual. Instead, it can have the name of the partner/ownership on the license.
The trade name is also not supposed to contain profanity and terms associated with discrimination.
These are the type of restrictions the DED has put in order to ensure that businesses remain safe, secure, and free from any wrongdoings from the get-go.
It is highly advised to contact the relevant authorities before finalizing the name as you might be unaware of other restrictions as well.
Riz & Mona Services
If you’re looking to start home based business in Dubai or across the UAE, Just book a free appointment with us and we’ll assist you in every step. Contact us on Whatsapp: +971 54 582 1012 or email: info@rizmona.com.
