If you are an artistic person who loves to make handmade products at home, there is good news for you. You can start a business by selling your handmade products in Dubai and the rest of the UAE.
But there is a proper process to follow before you are eligible to do so. Plus, there exist some rules and regulations that you should abide by before selling anything. In this ultimate guide, we will cover all the aspects of registering your business and the rules and regulations that you should follow in order to start your homemade products business in Dubai, UAE. So, without wasting any more time, let’s get started.
Homemade Products Business Ideas in Dubai
If we talk about selling homemade items for business, you must be wondering what products shall I make? Well, we have got some options for you. You can consider them if you have the skill and experience and are good at making them at home. These options are:
- Handmade soap business
- Homemade chocolate business
- Homemade candle business
- Homemade body butter business
There can be various other options, but if you are in Dubai, or in any other part of the UAE, these business opportunities are the best ones that you can opt for.
Requirements for Starting Homemade Products Business in Dubai
The process to operate your homemade products business is extremely simple and easy. Simply, you need to submit some documents at the time of application submission and you are good to go.
Following are the documents that you should have with you when submitting your business registration application:
- Trade name registration
- An establishment card from the FAIC
- Ability to hire employees, up to 3 work permits will be available
- Membership numbers in both the Chamber of Commerce & MoHRE (Ministry of Human Resources and Emiratisation)
- Renewal of trade or commercial license for over 1000 commercial activities
You will also be required to have tenancy contract permits and other relevant approvals that your business needs. If you are selling online through e-commerce platforms, you will be requiring an e-commerce license. We talked about it later in the article.
Criteria of Trade License Registration
You have to apply for a trade license, it is essential for legally operating your home-based business. But, applying for this license is not that easy. There are some conditions that you need to fulfill for obtaining a DED Trade License. These conditions are as follows:
- The DED trader license is renewable and is valid for one year
- Startups or projects must exist in the Emirates of Dubai
- The trader is allowed more than one license
- The license is given for residential sites only
- The trader must have an Emirates ID to complete the registration
- The trader is allowed 10 activities per license maximum within the same group descriptions
- The project owner must be of 21 years of age
- The social media accounts, business activity, and trade name can be amended as per the requests
Acquire Trade License for Homemade Products Business in Dubai
The DED (Department of Economic Development) is held accountable for issuing the trade license, which lets you operate your homemade small business. Thanks to this license, you are able to integrate business activities and startups that run online or on social media platforms within the database of the DED.
Other than being legally allowed to run your homemade product business, a few of the additional benefits according to the DED are as follows:
- An establishment card will be issued to you, letting you hire three employees
- The DED partners will also offer options for a workspace
- It offers the essential consultations to start a homemade products business
- You will be able to participate in conferences, exhibitions, and training workshops
- You also avail advantages of bank facilities.
- You get a “Customer Client Code”, which is given by Dubai Customs and Facilities Import and Export
- Your homemade items will be displayed at the consumer points of sale on the premises of the DED partners
- You will be given temporary employment services
- You will be given Dubai Chairman membership for commercial activities
If you are an artisan or crafter who wants to sell your homemade items in Dubai, the cheapest, and easy option available out there for you is to get an e-commerce license. You can sell through online networking sites and e-commerce platforms such as Amazon.
When registering your business, you have to select a jurisdiction. You can either run your business in a free zone or on the mainland of Dubai. And the e-commerce license will be provided by the DED if you have chosen the mainland, and by your relevant authority if you have decided to register with the free zone.
You don’t have to worry about getting an e-commerce license if you are a UAE nationality holder. As a resident of the UAE, you can operate your business by selling homemade items from your residential home with a trade license known as Intelaq License. This trade license is given only to those who hold a UAE passport and are planning to start their homemade products-based business.
Steps to Acquire E-commerce License in Dubai, UAE
The principles of setting up an online business in Dubai and operating it could be tedious and confusing. Even before you get your products or services aligned to sell on the website, you must know how to get an e-commerce license in Dubai.
To get an e-commerce license in Dubai, you need to follow the below steps:
- Decide on a legal structure
- Choose a business location
- Register the company’s trade name
- Dubai e-commerce license application submission
- Apply for the initial approval certificate
- Draft the local service agent agreement or MOA
- Rent a physical office space
- Register with customs authorities and ports (in case of imports and exports)
- Collect the license from the Department of Economic Development (DED)
- Open a corporate bank account
Cost of E-commerce License in Dubai, UAE
The cost of an e-commerce license in the UAE depends on whether you would like to choose a trading or professional activity. According to your choice, the cost of this license in Dubai will differ.
Anyways, the typical costs to be paid to establish a business based on selling homemade items in Dubai include:
- DED registration charges
- Additional partner visa charges, if required
- Physical office space rent
- Additional partner charges, if required
- Sponsorship cost for UAE local partner
- Any other government fees
- Investor visa cost
- Charges for the company’s stamp
- Foreign name fees, if any
- Investor’s Emirates ID and medical costs
- Medical insurance fee of investor
- Immigration card cost
Penalties for Selling Homemade Items for Business Without Trade License
Owners of small home businesses that lack a trade license are legally allowed to sell their homemade products online, at an event, or at a market – given that the organization behind it is fully licensed by relevant government bodies.
By signing up to sell homemade products at one of the regular crafter markets of Dubai or online, you can sell your handmade items in Dubai without their trade license. You are allowed to do so if you sell only via these routes.
Netizens who are quite active on social media can easily discover and find the arts of various crafters living in Dubai or anywhere in the UAE. Those guys usually post ads on Instagram or Facebook to market their homemade products.
Advertisements are fine but you should be aware of the fact that there are rules and laws issued by the government that govern and regulate the selling of homemade items in the UAE.
But not all are aware that there are laws and procedures in place that govern the selling of handmade goods in the UAE. Without having required licenses such as trade licenses, permits, and essential documents, it is illegal to sell anything from home. The law of the country is clear; any small business whether it is a professional business or a hobby business, functional within Dubai or UAE must hold a trade license. If you are selling online, you should hold an e-commerce license.
If you don’t have one and are still operating your business, chances are you will be penalized and asked to pay heavy fines or even imprisonment.
Start Your Homemade Goods Business in Dubai with Riz and Mona
If you’re a crafter and planning on starting a homemade items business in Dubai or anywhere in the UAE, Just book a free appointment with us and we’ll help you out in all the steps of the process. Contact us on Whatsapp: +971 54 582 1012 or email: info@rizmona.com.
