A Dubai home business licence issued by the Department of Economy and Tourism (DET) permits entrepreneurs to legally operate from a residential address. Costs range from AED 1,070 to AED 12,500 depending on activity and visa needs. Approval typically takes 1–2 weeks, making it the fastest route for solopreneurs and micro-enterprises in the UAE.
What Is a Dubai Home-Based Business Licence?
A home business licence—formally called an e-Trader or home-office licence—allows you to legally operate a commercial activity from your residential address in Dubai. Issued by the Department of Economy and Tourism (DET), this licence is ideal for consultants, freelancers, designers, and service providers who don’t need physical retail space. Unlike traditional commercial offices, home-based setup is faster and costs significantly less. Learn more about full Dubai business setup options here.
Need to confirm your activity is eligible? WhatsApp +971 54 332 2846 now.
Home-Based vs. e-Trader: Which Licence Do You Need?
DET offers two principal structures for home-based work:
e-Trader Licence (DET-Mainland): Designed for solopreneurs and partners operating solo. No employee sponsorship allowed. Cost: AED 1,070–2,500 all-in (licence, card, registration). Processing: 3–7 days.
Home Office Licence (DET-Mainland with Service Agent): Permits 1–3 employees and visa sponsorship. More oversight; higher annual cost. Range: AED 3,000–12,500 depending on employee count and activity classification. Processing: 1–2 weeks.
Both require residential proof (Ejari contract or tenancy agreement) and Ministry of Human Resources & Emiratisation (MOHRE) approval if hiring staff.
2026 Cost Breakdown: What You’ll Actually Pay
| Licence Type | Solo Setup (AED) | With 1–3 Employees (AED) | Approval Authority |
|---|---|---|---|
| e-Trader | 1,070–2,500 | Not eligible | DET |
| Home Office | 2,000–5,000 | 3,500–12,500 | DET + MOHRE |
| Renewal (annual) | 800–1,500 | 1,500–6,000 | DET |
All figures include licence fees, ejari/tenancy verification, DET registration card, and one-time setup. VAT is not levied on business setup in the UAE. Annual renewal is due in your licence anniversary month.
Get a personalised cost quote in 10 minutes—message DBS on WhatsApp.
Which Activities Are Allowed Under a Home Licence?
DET permits a broad range of home-based activities, provided they don’t breach residential lease terms or local law. Eligible sectors include:
• Business consultancy, management consulting, strategy advisory
• Freelance writing, content creation, copywriting
• Graphic design, web design, digital illustration
• Virtual assistance, bookkeeping, accounting services
• Online retail (dropshipping, e-commerce reselling)
• Training and coaching (online or by appointment)
• Software development and IT support
• Translation and interpretation services
• Photography and video production (studio-based at home)
Prohibited: Medical practice, food manufacturing, vehicle repair, storage of hazardous goods, and activities requiring foot traffic or signage. Your lease must explicitly permit business use. Always confirm with your landlord and provide written consent to DET.
Unsure if your business qualifies? Consult DBS Dubai business setup consultants for free.
Visa Sponsorship & Employee Rules in 2026
Under an e-Trader licence, you cannot sponsor employee visas. You may only work solo or with an unpaid co-owner who holds their own visa.
Under a Home Office licence with MOHRE approval, you may sponsor 1–3 employees on a dependent or employment visa. Each sponsored visa requires:
• A signed employment contract (MOHRE-compliant template)
• Proof of salary bank transfer capability (minimum AED 3,000–5,000 per employee)
• Completion of MOHRE labour inspection and approval
• Annual health insurance cover (employer-funded)
• Valid tenancy agreement showing the residential address
Visa sponsorship quotas depend on your business activity classification and paid-up capital (typically AED 20,000–50,000 minimum for multi-employee licences). MOHRE processing adds 5–10 working days to your overall timeline.
Documents You’ll Need & Timeline
To apply for a home business licence via DET, prepare:
✓ Valid passport copy and UAE residence visa
✓ Tenancy agreement (Ejari contract) or owner’s NOC if home-owned
✓ Bank statement (last 3 months; not always required, but expedites vetting)
✓ Detailed business activity description (1–2 paragraphs)
✓ Completed DET application form (DBS supplies this)
✓ MOHRE pre-approval letter (if hiring staff)
✓ No objection from your villa/apartment management company
Timeline (no employee sponsorship): 1–2 weeks from submission to licence issuance.
Timeline (with employee visas): 2–3 weeks (includes MOHRE labour compliance review).
DBS handles document prep, DET submission, and liaison with MOHRE to compress timelines wherever possible.
Ready to start? WhatsApp +971 54 332 2846 to schedule your free setup call.
Mainland vs. Free Zone Home Licences
DET (mainland) home licences are the de facto standard and lowest-cost option for residential-based work. Free zones (Jebel Ali Free Zone, DMCC, DAFZA, etc.) do not traditionally issue home-office licences; they require a registered office or desk in their designated business park or co-working facility. Costs for free-zone desk rental start at AED 3,000–6,000 monthly, which exceeds annual mainland home-licence fees.
Choose DET mainland if: You are a sole trader or micro-enterprise; your business is service-based or digital; you prioritise cost efficiency.
Consider a free zone if: You need corporate prestige, multiple visa quotas, or operate in import–export (free-zone-specific activity).
Frequently asked questions
Can I legally run a business from home in Dubai?
Yes, absolutely. The Department of Economy and Tourism (DET) issues home-office and e-Trader licences permitting legal home-based operations. You must hold a valid Ejari tenancy contract, get landlord consent, and ensure your activity is DET-approved. Costs start at AED 1,070 all-in. Approval takes 1–2 weeks.
What home-based business licence options does DET offer in 2026?
DET offers two licences: (1) e-Trader—solo, no staff; AED 1,070–2,500; 3–7 days approval; (2) Home Office—up to 3 employees, visa sponsorship allowed; AED 3,000–12,500; 1–2 weeks approval with MOHRE. Both require Ejari and proof of residence. Choose based on whether you plan to hire.
How much does a home business licence cost in Dubai?
All-in cost ranges from AED 1,070–12,500 depending on licence type and employee plan. Solo e-Trader: AED 1,070–2,500. Home Office (no staff): AED 2,000–5,000. With 1–3 employees: AED 3,500–12,500. Annual renewal: AED 800–6,000. Includes DET registration, card, and administration.
What is the difference between an e-Trader and a home-based licence?
An e-Trader licence is for solo entrepreneurs only—no employee sponsorship permitted. Cost and processing are faster (AED 1,070–2,500; 3–7 days). A home-office licence allows 1–3 employees and visa sponsorship (AED 3,000–12,500; 1–2 weeks). Both require residential Ejari, but the home-office licence involves MOHRE labour approval.
Can I sponsor visas on a home-based business licence?
Only under a Home Office licence with MOHRE approval. You may sponsor 1–3 employee or dependent visas. e-Trader licence holders cannot sponsor staff visas. Each sponsored visa requires a signed employment contract, health insurance, salary capability proof (minimum AED 3,000–5,000), and valid Ejari. MOHRE adds 5–10 working days.
Which activities are allowed under a Dubai home business licence?
Permitted activities include consultancy, freelance writing, graphic design, virtual assistance, online retail, training, software development, translation, and photography. Prohibited: medical practice, food manufacturing, vehicle repair, hazardous storage, and foot-traffic retail. Confirm your landlord approves business use in writing and submit to DET.
How long does it take to get a home business licence in Dubai?
e-Trader licences: 3–7 working days from submission. Home Office licences without employee visas: 1–2 weeks. With visa sponsorship: 2–3 weeks (includes MOHRE labour compliance). DBS expedites by preparing all documents and liaising with DET and MOHRE. Timeline confirmed on WhatsApp within 10 minutes.
Get expert help in 20 minutes
Need clarity on your Dubai setup? Talk to DBS Documents Clearing LLC — 80,000+ entrepreneurs served since 2009. WhatsApp +971 54 332 2846 or email inquiry@dubaibusinessservices.com for a free 20-minute scoping call.
