Question 1

Q‑1. Can an expat get a home business license in Dubai? What activities are permitted?

Accepted Answer

Yes, expatriates can apply for a home business license in Dubai, such as the E‑Trader license issued by the Dubai Department of Economy and Tourism (DET). A valid Dubai residency visa is mandatory. Expats are typically permitted to engage in digital and professional services like social media management, online coaching, consulting, and graphic design. However, selling physical products is restricted under this license for expatriates.

Question 2

Q‑2. How much does a home business license cost in the UAE?

Accepted Answer

The cost of a home business license depends on the license type and the issuing Emirate. For example, Dubai’s E‑Trader license costs approximately AED 1,070 to AED 1,800 per year. The Intelaq license (for UAE and GCC nationals) is around AED 1,050, and Tajer Abu Dhabi starts at AED 790. Freelance permits in free zones are costlier, typically starting at AED 7,500 annually, excluding visa fees.

Question 3

Q‑3. What is the DED E‑Trader license?

Accepted Answer

The DED E‑Trader license, now under the Dubai Department of Economy and Tourism (DET), allows individuals to conduct business activities online without needing a physical office space. It targets entrepreneurs who use websites and social media platforms to sell services or promote their work. The license is ideal for freelancers and home-based businesses and provides benefits like opening a business bank account and accepting online payments.

Question 4

Q‑4. How long is a home business trade license valid, and how is it renewed?

Accepted Answer

Most home-based business trade licenses in the UAE are valid for one year and can be renewed annually. Renewal is generally completed online through platforms like “Invest in Dubai” for Dubai-based licenses or the TAMM portal for Abu Dhabi. Required documents usually include a valid tenancy contract (Ejari in Dubai), a copy of the current trade license, Emirates ID, and payment of the renewal fee.

Question 5

Q‑5. What are the penalties for not renewing a home business license on time?

Accepted Answer

Failing to renew a trade license on time can lead to accumulating fines and administrative consequences. Dubai imposes a fine of AED 250 per month of delay. Continued non-renewal may result in the suspension of business activities, blacklisting, and potential legal actions. These penalties can increase significantly over time, affecting visa status and access to business services, making timely renewal essential for business continuity.

Question 6

Q‑6. How do I cancel my home business trade license if I close my business?

Accepted Answer

Canceling a trade license is a formal, multi-step process:

Settle all outstanding dues with government authorities and service providers.
Close corporate bank accounts linked to the business.
Cancel all employee visas and labor cards under the company.
Obtain No Objection Certificates (NOCs) from relevant departments (e.g., immigration, customs, utilities).
For LLCs, publish a closure notice in a local newspaper to invite objections.
Prepare and submit board resolutions approving the company’s closure.
File the final liquidation application with the relevant Economic Department (e.g., DED, DET, SEDD).

Question 7

Q‑7. How can I verify if a home‑based business in the UAE is licensed?

Accepted Answer

You can verify if a business is licensed in the UAE by checking government portals. The National Economic Register (ner.economy.ae) provides a centralized search tool for all UAE-licensed businesses. For Dubai, the DET (formerly DED) e-Services platform offers verification for licenses, including E‑Trader. These portals allow the public to confirm a business’s legal status, license type, and whether it is permitted to operate within its declared activity.

Question 8

Q‑8. Do I need a physical office space for a home business license?

Accepted Answer

No, many UAE home business licenses are specifically designed to be operated without a physical office. Licenses such as E‑Trader (Dubai), Intelaq (Dubai), and Tajer Abu Dhabi (initially for up to three years) allow individuals to work from home legally. This significantly reduces overhead costs and enables flexibility, particularly for entrepreneurs in e-commerce, freelancing, and digital services who do not require a physical storefront or office.

Question 9

Q‑9. Can I hire staff with a home business license?

Accepted Answer

Staff hiring depends on the type of license. For example, the Dubai E‑Trader license is intended for solo entrepreneurs and does not permit hiring employees. However, other licenses like the Intelaq license, allow limited staffing, up to three employees. In cases where business growth requires a larger team, entrepreneurs may need to upgrade to a different license category that supports additional visa quotas and staff sponsorship.

Home-Based Business Trade License UAE

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