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How to Get a Home Business License in Dubai

How to Get a Home Business License in Dubai – Step-by-Step Guide by A&A Associate
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Starting your own venture from your living room is no longer just a dream, it’s a massive trend in Dubai. The city’s push for digital entrepreneurship has made it incredibly easy and affordable to get a home business license in UAE. This guide breaks down what you need to do to turn your great home idea into an official, operating business.

Is it Legal to Start a Home Business in Dubai?

It is completely legal to have a home-based business in Dubai, as long as you have the relevant license for it. Operating a business out of your home without a permit can get you penalized.  The primary and most affordable permit for solo digital ventures is the “e-trader license”, issued by the Department of Economy and Tourism (DET) for mainland businesses. This license legalizes online sales and services conducted through social media platforms and websites. E-trader businesses mainly sell using Instagram, TikTok, and Facebook. You can also use WhatsApp Business or make a personal website. The safest ways to get paid are by using secure payment apps (gateways) or accepting Cash on Delivery (COD). If your business starts making a lot of money, you might need to upgrade your license.

Who Can Get a Home-Based Business License in Dubai?

  • UAE or GCC nationals 
  • Expats
  • Freelancers and online sellers
  • Homemakers 
  • Entrepreneurs looking to start small-scale ventures

To qualify, applicants must:

 

  • Be at least 21 years old
  • Have a Dubai residence visa and Emirates ID
  • Apply as the sole owner 



Group

Type of home business license

UAE or GCC nationals

E-trader license, Intelaq license 

Expats

E-trader license, Free zone company 

Freelancers or online sellers

E-trader license

Homemakers & entrepreneurs

E-trader license, Intelaq license (for Emiratis)

What are the Benefits of a Home Business Setup in Dubai?

  • Affordable setup: You don’t need a physical office or storefront for running your home business. That makes it a cost-effective license for entrepreneurs.
  • Complete business ownership: Individuals with a home business license have full ownership of their business, meaning they are in charge of all the decisions. 
  • Minimal tax obligations: There is no income tax in the UAE corporate tax is only levied on businesses with taxable income over AED 375,000. 
  • Flexible hours: When you’re in charge of your own schedule, you can choose your own working hours. This makes home businesses ideal for individuals who work other jobs or have family responsibilities.

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What are the Activities Allowed Under a Home Business License?

There is a difference between the business activities that expats and Emiratis can carry out with a home business license. Expats are not allowed to sell products under this license. They can only offer services like:

  • Virtual coaching
  • Online consulting
  • Creation and sale of online courses or educational content
  • Digital marketing (web development, graphic design, SEO, social media)
  • Social media content creation 
  • Online tutoring 

 

Emiratis can apply for the Intelaq license, an exclusive home business license to UAE and GCC nationals that is issued by the Dubai SME. After five years of holding this license, it should be converted into a commercial trade license. These are some of the activities under the Intelaq license: 

 

  • Foodstuff trading (cakes, sweets, dairy, dates)
  • Fashion and apparel trading 
  • Reselling cosmetics or clothing 
  • Real estate brokerage 
  • Consultancy (Finance, business, HR)
  • Event planning 

How to Get a Home Business License in Dubai?

Working with the expert business setup consultants at A&A Associate can make the process of getting a trade license in Dubai much easier. 

1. Pick a Business Activity

You can choose any of the permitted business activities for home business registration in Dubai. If you’re applying as an expat, you cannot sell any physical products.

2. Create a DET Account  

You can log in with your UAE PASS or create an account on the DET website with your phone number or Emirates ID.  

3. Apply for a Trade License 

You can reserve a trade name for your business on the same platform, upload some personal identification documents, and pay the fees. The application generally can take up to five business days to be processed.

4. Open a Bank Account 

Every registered business in the UAE needs a corporate bank account. Having a separate, local  bank account for your business allows you to better track your expenses and fulfill your tax obligations. 

What is the Cost of a Dubai Home Business Permit?

It costs AED 1,370 to apply for a home business license in Dubai. You will pay this when you apply for a license and will need to pay it for every year you renew the license.

 

Base fee (includes initial license fee, knowledge and innovation fees)

AED 1,070

Dubai Chamber of Commerce fee (mandatory membership) 

AED 300

Need a Home Business License in UAE? A&A Associate Can Help!

A&A Associate is the UAE’s largest business setup advisory. Our expert consultants provide end-to-end support to entrepreneurs looking for business setup in Dubai. We can help you apply for a home business license in Dubai or anywhere in the UAE as well as open a bank account. Get in touch for a free consultation!

Streamline Your Business Setup Process

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Frequently Asked Questions

Can Expats Run a Business From Home in Dubai?

Expats can start a home business in Dubai by getting the e-trader license. However, expats are not allowed to use this license to sell actual physical products, it’s for services only.

Do I Need a Trade Name for a Home Business License in Dubai?

You do need to choose and register a trade name; it’s a required part of making your business official. You can easily reserve the name you want right on the DET website when you’re applying for the license.

Can I Start a Home Business in a Free Zone?

Setting up a company in a free zone is a popular alternative, especially if you’re an expat. You usually get a free zone license combined with a flexi-desk address, which allows you to run your operations remotely.

Can I Get a Freelance Visa With a Home Business License?

The home business license doesn’t come with its own visa. It’s just a work permit for your home business, assuming you already live in Dubai with a dependent or employment visa. If you’re looking to move to Dubai to start a business from your home, you will need to apply for a freelance visa first.

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Nithila Kumar
With over four years of writing experience, Nithila Ashok Kumar has established a strong expertise in the personal finance, tax, accounting, and business industries. Having worked with companies across the USA, UAE, and India, she specializes in simplifying complex information into content that informs and engages readers.

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