License for a Home-Based Business in Dubai: Things You Should Know

A home-based business is one of many things that covid has changed in our lives. Before covid most the people were regular employers, or even if they were doing business, most of them were doing business outside the home. However, now people are more prone toward home-based business because of its multiple benefits. Whether starting a side business or developing a full-fledged business, home-based businesses are more preferred and popular.

UAE is also one of those countries that have moved towards home-based, especially at the end of 2020. A home-based business in Dubai is preferred because of the lower taxes, and also it offers freedom and flexibility.

If you want to set up a home-based business in Dubai, the process is the same as in other countries, and you will need to have a license for a home-based business in Dubai. A new business owner usually does not know about the legal process of making a license.

So we have generated this article for people like you who are thinking of starting their home-based business. You need to know what the things they need and how to get a license for a homemade business in Dubai.

Need for A Trader License

A trader license is a legal document that ensures that your new business is legal and nothing is being done out of the law. A license is useful to give you the consultation that every new business person needs. Once you get the license, you also have the membership of the Dubai chamber, which is useful for any kind of commercial activities you want to do, whether it’s business or some kind of other activity.

Most banks give you facilities based on the Trader license like if you want to have a loan, you can get it based on this license. Because it is a paper that ensures you are doing a business and you will return the money to the bank.

You also get a custom client code from Dubai customs used if your business involves any kind of imports and exports through the Dubai trade. You will become eligible to hire three employees using your license because you will not be able to hire an employee without that.

You can benefit from temporary employment services using which you can participate in exhibitions and training workshops that are necessary to learn things about your business as you are yet new in the field. The license also gives you a huge benefit that your products get a display location in consumer points of sale in Dubai economy partners.

Criteria for Trader’s License

Before applying for a license, you must know about the Dubai e trader license requirements. Some requirements which you need to know before applying for a trader license are:

• You must not be younger than 21 because anyone younger would not be awarded the license.
• You need to have an Emirates ID to apply for the license if you want to get a license for a home-based business.
• Your business must exist in the Emirates of Dubai.
• You must provide a residential site from which you will be doing your business, or without that, you will not be able to get a license.
• If you want to do more than one business, you can have more than one license at a time.
• If you want to do similar activities for which you have a license, you can continue at least 10 activities with a single license.
• DED trader license is only valid for 1 year; you need to renew it.
• While requesting a license, you need to report your activity, trade name, and social media accounts.

Cost To Apply For DED Trader License

If you are looking for e trader license in Dubai cost, then here are some things you need to know:

• To register your business with the Dubai government, you will have to pay almost Dh1070. You also need to know that your business name will go through a strict consideration before being proved, no matter how much you pay.
• You cannot use a trading name already used by someone else, especially in the same field.
• You cannot include religious words like Allah, Lord, or God in your trade name, or else it will decline.
• No person’s name can be included in your trade name; in fact, it can include a partner or ownership name in the license.
• Any discriminating phrases that may induce hate speech are not allowed in a trading name.
• You can use your name along with the family name in the license.
• No one can use a translated trade name from one language to another. You will have to use the same words in Arabic and English for your trade name.
• No country name can be included in your trade name. Also, you cannot use any global political organization affiliation.
• Your trade name should not be similar to any global brand or a registered trademark like KFC.
• Your trade name must include your trade category like you can write ABC jewelers.
• You are not allowed to include any icons over spacer in your trade name.
• Do not use universal, Middle East, or international words at the start of your trade name.
• All trademarks are registered with the trademarks department of the ministry of economy.
• A company can use the trade name of another company providing the franchise.
• Your trade name can be canceled anytime if it appears similar to an already present trade name or if the trade name is not following the terms and conditions.

Process To Get A License In Dubai

Starting a home business in Dubai requires taking care of some things involving you to make some decisions before requesting a license for a home-based business in Dubai. The very first thing needs you to choose the activities you will be running under the license you want to get.

You must keep in mind that you cannot run any activities under the license which are not stated in the license because, in that case, you might be responsible for what you do. You can seek the advice of an expert to ask what activities will be allowed under your business cover.

Choosing the company name is another important step that needs attention. You must not choose a company name that does not follow the UAE’s naming criteria. You can consult with a company formation expert before applying for a license because you have to do it yourself, and if anything goes wrong, you may get into trouble.

Everything depends on whether you choose a free zone or mainland business because both have different rules for the license.

If you are applying for the mainland business, you will submit your application to the DED for approval which is an online process. While if you decide on a freeze zone setup, you have to submit your application to the chosen free zone because they are self-regulated. Free zones do not require any additional approvals, which makes the process of license issuing faster.

Before applying for a license, you must be aware of the rules and regulations of the company formation process in the UAE. You should take the help of an expert who can guide you through the process and help you apply for the most suitable license for you, depending on your budget and needs.

Benefits of Home-based

Before you apply for the license, you must look out for the benefits and disadvantages of a Home-based business. Because once you apply for the license, you will have to continue your business. You need to know that there are more advantages to having a home-based business. Some of them include:

• As you are doing business from your home, you will not have to establish an office or pay the rent if you do not establish your own office.
• To start your business, you will only need a trade license and a space in your home from where you will be operating your business.
• The rules of UAE for a business are very helpful for small businesses that enable businesses to establish within days without any hurdles.

Conclusion

Starting a home-based business needs multiple things involving a license for a home-based business in Dubai. But following the guidelines we have given you, you will not be having any difficulty with the license. A home-based business is a good thing to start because it offers multiple benefits and financial stability if things go right.

Let us know in the comments if you have understood the process well. Also, you can ask anything if you want to that will be helpful for other people too.

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