We all know that starting a home-based business is a creative and fun way to make an income. This option of earning has boomed in the UAE after the COVID-19 pandemic. If you are also thinking of starting your own business, you will need to get a home-based business license in Dubai, UAE. The government of Emirates has also amped up the issuance of the license to support such small and medium enterprises (SMEs).
This guide will teach you how you can obtain Dubai home-based business license including the process and requirements. As a bonus, we will also provide you with top trending home business ideas that you can do right away.
Documents Required to Issue Home Business License in Dubai, UAE
Home-based business registration requires some documentation. You must provide the following documents at the time of submitting an application:
- Valid UAE Pass account
- Valid Emirates ID and your partner’s valid Emirates ID
- UAE Pass digital signature
- Local partner with drafted signed and approved Memorandum of Association (for expats only)
- Company facts, investor information, address, and trade name
- 1 or 2 years are needed to file a tenancy agreement to DED.
- In the case of housewife or employment status, a NOC from the Federal Authority for Identity and Citizenship (FAIC) is required (for ex-pats only)
- Within 60 days of the issuance of the license, change the visa status to investor residency (for ex-pats only)
With the assistance of our experts at Riz and Mona, you will be able to gather and organize the necessary paperwork.
Why You Should Obtain Home Based Business License in Dubai, UAE
The home-based business license (known as E-Trader License / Bashr) has opened doors for aspiring home business owners and homemakers to legally establish a home-based business in Dubai.
This license offers you the following things to benefit your business:
- Renewal of trade or commercial license for more than 1000 commercial business operations.
- Benefit from facilities of the corporate banks.
- An establishment card issued by the Federal Authority For Identity and Citizenship (FAIC).
- Membership numbers in the Ministry of Human Resources and Emiratization (MoHRE) and Chamber of Commerce.
- Registration of a trading name.
- Receive a ‘Customs Client Code’, given by Dubai Customs and facilitates export and import, through dubaitrade.ae.
- The option to hire workforce, availability of up to 3 work permits.
- Gives the necessary consultations to open a new business
- Ability to participate in training workshops, exhibitions, and conferences.
Benefits of Starting a Home Business in Dubai
There are multiple benefits of starting a home-based business in the UAE including the following:
100% Ownership
Having a home business license in Dubai gives you full control over the operations and finances of your company.
Flexibility
You are not bound to work under a fixed structure when you are your own boss. You can benefit from the luxury of setting your routine. Time management can help you boost productivity by figuring out your own routine.
Freedom
Do you have experience working with large teams and tough managers? You know how difficult it can be to accommodate differing opinions and adjust to different approaches. In Dubai, you can conduct your home-based business in any way you want without any pressure from a manager.
Comfort
Thanks to a home-based business, the 9 to 5 grind doesn’t have to be a part of your life anymore. The stress of snoozing alarms, choosing outfits every day, being stuck in forever-lasting traffic, and sitting for long hours takes a toll on you. You can be saved from it upon starting your own business from home.
Legal Structure of the Home-Based Business License
Home-based business licenses may be granted on the basis of the type of business operations planned. In Dubai, obtaining legal licenses is easy for several types of home-based enterprises, such as professional services. Others, like online trading, must adhere to particular standards set by the government.
The legal structures that are available for the home-based business permit are either a Limited Liability Company (LLC) for foreigners who need a local sponsor or a Sole Establishment, for UAE locals only. Riz and Mona business consultants will assist you with renewing or amending your current business trade license in accordance with the new home license if you already have one.
After receiving an e-trader license, home-based enterprises in Dubai are able to conduct any trading business operations. Certified professionals having a Lifestyle Coaching license and are registered with the Dubai Health Authority (DHA) are allowed to offer their wellbeing services online. A freelance license also enables qualified people to legally deliver their skills.
The cost of a home-based business license in Dubai is different for UAE nationals and ex-pats starting an LCC. Get in touch with business experts like Riz and Mona to find out exactly how much your home business license will cost.
Choosing a Business Activity For Your Home Business
Under the Bashr or business license for a home-based business, more than 1200 business activities are permissible. Here are a few recommendations that you can choose for opening a home-based business.
Professional Industry
- Painters and Calligraphy
- Hairstyling and Makeup
- Handicrafts
- Tailor and more
Consultancy Industry
- Lifestyle Coaching
- Marketing Services
- Advertising
- Business Services and more
Services Industry
- Videography Services
- Photography services and more
Best Home-Based Business Ideas for 2022
Once you have obtained your trade license for a home-based business, you are good to go. The following are the top trending business ideas of 2022 that you can start from the comfort of your home:
1. Online Counseling
In order to provide any health-related services, such as nutritional counseling, lifestyle coaching, and psychological counseling, you must be registered with the Dubai Health Authority (DHA) and have a business license to practice locally from your house. Then, by getting a “Lifestyle Coaching” license from the Department of Economic Development (DED), you can provide online consultations.
2. Fashion Boutique
The demand for branded clothing and accessories is extremely high in Dubai all around the year. You can maximize your profit margins by understanding market trends and finding a cost-effective supply chain by sitting at your home.
3. Various Online Services
You can provide PR, HR, marketing, and IT services while sitting at your home. All you need to do is get a management consultancy license from the Department of Economic Development (DED). you can also apply for a freelance permit if you plan to provide content writing, graphics designing, web development, and other niche services.
4. Teaching or Tutoring
Anyone with knowledge or experience in any profession can provide it as a service to those who want to learn that skill. You decide the worth of your service, whether it be to teach yoga, the capacity to play an instrument, or business advice.
You may also teach others online through video streaming platforms such as Zoom or Skype.
5. Handicrafts Business
You may utilize popular social media platforms such as Instagram or Facebook to display products, connect with potential customers, and sell your handmade products to make money, whether you make crafts, handcrafted jewelry, or paintings. But you will be needing to acquire a DED e-trader license.
Is the Home Based Business license limited to Dubai?
You are in luck because the home-based business license is not limited to Dubai only. This license covers Sharjah, Ras Al Khaimah, Abu Dhabi, Fujairah, and Ajman in addition to Dubai. It will soon be made available in Umm Al Quwain and several free zones of the UAE. Nevertheless, the Abu Dhabi Department of Economic Development (ADDED) initially introduced and issued the home-based business license.
You can seek the guidance of professional business setup consultants in the UAE such as Riz and Mona to apply for a home-based business license in Dubai. We will not only handle your application but also help you in setting up your home business without any trouble.
FAQs – Frequently Asked Questions
Can you operate a business from home in Dubai?
Yes, you can operate a business from home in Dubai. Upon receiving an e-trader license, home-based businesses in Dubai are able to conduct any trading operations. While a freelance permit also lets qualified professionals provide their services in a more effective manner.
How can I get a home business license in Dubai?
To get a home business license in Dubai:
- Visit the DED trader website to apply for the e-trader license in Dubai.
- Create a DED trader account, register yourself, and pay the charges.
- when registering for the license, submit the information about your accounts on social media platforms
- Wait for the confirmation message.
Do you need a license to start a business in Dubai?
Yes, you need some major licenses for business setup/company setup in Dubai, UAE which is as follows:
Getting a trade license usually takes one week or more after getting your initial approval. Business activity and external documentation play a major role in this process.
Can a home business start without a license?
No, you cannot start a home business without a license in Dubai, You will be required to get a home-based business license and trader license in Dubai, UAE before starting a business from your home.
Can I have a business in my home?
Yes, you can have a business in your home in Dubai. There are multiple options to choose as your new home-based business in the Emirates.
How Riz and Mona Can Help You
Find the ideal way to establish your brand new home-based business in Dubai by contacting Riz and Mona. Getting a home business license in Dubai is easier with the help of our legal corporate advisors. In addition, they will assist with many numerous formalities associated with running a home business legally in Dubai.
Furthermore, we at Riz and Mona can assist you in obtaining a home-based business license in the United Arab Emirates in a simple and smooth way. With the help of our business experts, you can quickly launch your firm as we have a lot of experience in this field. Contact us and we’d be pleased to assist you in every possible way.
