Is selling from your Dubai home legal? Here’s DED’s response

Budding entrepreneurs usually start small with business dealings likely to happen from their homes. On the face of it, this may seem to many an innocent exercise, but before you venture out in such territories, make sure to check the legalities of these activities.

In comments sent to Emirates 24|7 in response to this website’s queries, Dubai’s Department of Economic Development (DED) maintains that any business/sale activities without a license remain illegal.

Recently, social media was abuzz with news that some homes in Dubai were raided by officials while residents were carrying out seemingly innocuous business activities from their homes, such as selling clothes, crafts and art work.

The officials, however, were well within their rights as business dealings of any nature carried out without a license from homes are not permitted in Dubai.

DED has confirmed to Emirates 24|7 that such business/sale activities from the premises of residential homes are not allowed in the city.

“Please be informed that these kinds of businesses need a trade license called Intelaq license and is given to UAE passport holders only,” the department explained in an e-mailed statement sent to Emirates 24|7.

With the help of this licence, UAE nationals can create home-based businesses for almost any type of professional, trade or artisan business.

The business must be reasonable for operation in a residential environment and must not harm the environment or the health of any person, and should not generate noise or other irritants that could negatively impact neighbours, as per official guidelines.

Each person can have only one trade or professional Intelaq license but can operate more than one related activity under this license. An Intelaq license does not allow the business owner to hire staff but may engage contractors.

The application fees for these licenses, which are issued on an annual basis, have been fixed at Dh1,000. The applicants must be UAE nationals residing in the Emirate of Dubai, at the time of application. They must also refrain from any activity outside the scope of the license.

The activity can be undertaken for three years from the date of issuing the license, which must be renewed annually. The Intelaq license will be converted to a business license after three years.

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