Setting up a home-based business in Dubai is an efficient, low-cost way to enter the UAE’s thriving entrepreneurial landscape. Whether you are a UAE national, an expatriate living in Dubai, or an international entrepreneur, there are multiple pathways to secure a home business licence. These range from the Intelaq Licence (for Emiratis and GCC nationals) to the E-Trader licence (for Dubai residents of any nationality), to Freelance Visas and Free Zone Company setups with a Flexi-Desk option. This guide explains everything you need to know about choosing the right route—covering eligibility, application steps, permitted activities, and the benefits and limitations of each licensing option.
What is a Home Business Licence?
A home business licence allows individuals to legally operate a small business from their residence without renting a commercial office. This type of licence is ideal for freelancers, consultants, artisans, and service providers. Operating a business in Dubai without a licence is illegal, making this step essential.
The Intelaq Licence (For UAE and GCC Nationals)
The Intelaq licence, issued by Dubai SME, is designed for UAE and GCC nationals residing in Dubai. It supports home-based startups and small-scale businesses, making it a popular choice for entrepreneurs who prefer minimal overhead costs and a straightforward setup process.
Eligibility
- Applicants must be Emiratis or nationals of a GCC country (Gulf Cooperation Council).
- The entrepreneur must reside in Dubai and the house or home office must be located in Dubai.
- The enterprise must be 100% owned and managed by the qualifying national(s); it is essentially a sole proprietorship (or a single-owner establishment).
- The applicant cannot have more than two Intelaq licences, and should not hold more than 5 other trade licences in the UAE.
Permitted Business Activities
Intelaq licences cover a wide range of business activities, but they are generally in fields that are feasible to carry out from a home environment (mostly service-oriented or creative businesses). Some of the common activities permitted under an Intelaq home licence include:
Consultancy and Training Services – e.g. business consulting, IT consulting, online coaching or tutoring, etc.
Fashion and Apparel Design – designing clothes or costumes, tailoring from home, traditional dressmaking, etc.
Interior Design and Decoration – offering interior decorating advice, home decor design services, etc.
Event Planning and Party Organising – planning small-scale events, children’s parties, and corporate functions (the planning/admin from home; events themselves are on-site at venues).
Publicity and Marketing Services – freelance PR services, advertising consultancy, social media management, graphic design, and other creative services that can be done on a computer.
Real Estate Brokerage or Agencies – property management or brokerage services (allowed for Emiratis) operating from a home office.
Handicrafts and Design – jewellery design, artisan crafts, artwork sales, etc., as long as production doesn’t require industrial facilities (small craft production at home is fine).
Technology and IT Services – e.g. app development, web design, IT support that you can run from a home workstation.
Intelaq Licence Benefits
Very low cost (AED 1,050 / USD 285).
No commercial office is required (operate entirely from home).
Can sponsor up to three employees (Establishment Card needed).
Ideal for small-scale, service-oriented businesses.
Backed by Dubai SME support (training, fee waivers).
Intelaq Licence Limitations
Restricted to UAE/GCC nationals.
No partners or external investors allowed (sole proprietorship only).
Some activities (e.g. home-based food) are limited to five years before upgrading to commercial premises.
Maximum of three staff – not suitable for businesses requiring larger teams.
The residential address cannot serve as a retail outlet (no walk-in customers or signage).
How to Apply for the Intelaq Home Business Licence
1. Register on the Portal
New Intelaq licence applications are submitted via the Invest in Dubai online portal. After clicking on this link, scroll down to the bottom of the page where it says ‘Invest in Dubai portal’. This will lead you to sign in or create an account (using UAE Pass or by signing up with your Emirates ID details).
2. Enter Business Details
Fill in the online application with your personal details, proposed trade name, and business activity selection. The system will have a list of allowed Intelaq activities; choose the one that matches your business (e.g. “Fashion Design – Intelaq” or “Marketing Services – Intelaq”).
3. Attach Documents
Upload scanned copies of your Emirates ID card, passport, NOC from your landlord (if you are renting) and documentation of your home address in Dubai (a tenancy contract (Ejari) if you rent, or the title deed if you own the property). In many cases, Dubai SME will also ask for a location sketch or Makani number of the home, or a premises map, to identify where the business will operate.
4. Name Reservation and Initial Approval
A representative from Dubai SME will reach out to you to discuss your business idea. Following this, you will receive an approval letter to issue the Interlaq licence and reserve your trade name. You may pay a small fee for your trade name reservation (unless waived under SME incentives).
5. Pay the Licence Fee
Once approved, you will be prompted to pay the licence issuance fee. The cost for an Intelaq licence is AED 1,050 per year (for new issuance and renewals). Dubai SME often waives many local fees for Intelaq entrepreneurs, so the amount is kept very low as an encouragement. You can make payments via direct debit through Dubai Islamic Bank, Commercial Bank of Dubai, or Emirates Islamic. For cash or cheque payments, please visit Aafaq Islamic Finance, Commercial Bank of Dubai, or Emirates Islamic.
6. Collect the Licence
After payment, your trade licence will be issued. Since Intelaq is a form of professional licence (sole establishment) in the mainland, your licence will be a Department of Economy and Tourism in Dubai (DET) licence, marked under the Dubai SME Intelaq program. You can download the electronic licence and also get a printed licence if needed. The licence will show your trade name, your name as owner, the activity, and your home address as the business location.
7. Establishment Card (Optional)
Once you have the licence, you can request an Establishment Card (Immigration card) for the business if you intend to do any visa-related processes (hiring staff, etc.). The Establishment Card is issued by the General Directorate of Residency and Foreigners Affairs (GDRFA) and comes with a separate fee (AED 260). However, if you don’t intend on hiring or sponsoring anyone, you don’t need to apply for an Establishment Card.
Once these steps are complete, you are officially a business owner! You can now legally print business cards, market your services, and issue invoices under your business name – all from your home base.
Home Business Licence Options for Expats and International Entrepreneurs
Non-GCC individuals cannot apply for Intelaq, but there are several alternative pathways for operating a home-based business in Dubai:
1. E-Trader Licence (for Dubai residents).
2. Freelance Visa (issued through certain free zones).
3. Free Zone Company with a Flexi-Desk.
E-Trader Licence
The E-Trader licence, issued by Dubai Economy, allows Dubai residents to run an online or home-based business without a physical office. Keep in mind that no visa or employee sponsorship is included with the e-trader licence, so expatriates must already have residency in the UAE.
Business Structure:
- Sole proprietorship with no partners or employees.
Eligibility:
- Dubai resident aged 21+ with a valid Emirates ID and visa.
- Available to Emiratis, GCC nationals, and expats.
- No local partner is required.
Permitted Business Activities:
- Sell products online through social media platforms (Instagram shop, Facebook, TikTok) and personal websites, etc.
- Offer coaching, consulting, digital marketing, and other services online.
Where to Apply:
Fully online via the DED E-Trader portal.
Pay the licence fee and any initial approvals.
Licence typically issued within 1–3 days.
Fees:
- AED 1,370 (USD 373) in the first year, including Chamber membership.
- AED 1,070 (USD 291) for annual renewal.
Benefits:
No tenancy contract or Ejari is needed.
No NOC from your current visa sponsor is required by DED (though you should check your employment contract).
Fast, online application—ideal for testing a small business idea.
Low cost compared to forming a full company.
Limitations:
Cannot sponsor a visa for yourself or employees—must already have residency.
Expats are restricted primarily to service activities; product trading is limited.
Sole owner only; cannot add partners or scale with staff.
Lacks the formal structure of a standard DED or free zone licence.
Freelance Visa
Freelance visas are offered by various Dubai free zones—such as Dubai Media City, Dubai Knowledge Park, and Dubai Design District—and cater to professionals in media, design, technology, education, or similar fields.
Business Structure:
Professional licence under a free zone, with self-sponsorship for the freelancer.
Usually one-person entity.
Eligibility:
Expats with background or qualifications in the relevant sector.
Some free zones may require a portfolio or education certificates.
Permitted Activities:
Freelance services in approved sectors (e.g. graphic design, software development, journalism, tutoring).
Check each free zone’s activity list for details.
How/Where to Apply:
Directly through the free zone authority (e.g. TECOM for Media City).
Provide proof of qualifications/experience.
Upon approval, pay the licence and visa fees and complete medical/Emirates ID steps if switching visas.
Fees:
- Approx. AED 10,000 (USD 2,720) for the first year, including the licence and the visa.
Benefits:
- Self-sponsored visa—no separate employer needed.
- Can sponsor family members (depending on free zone policies).
- No dedicated office is required; many free zones permit home-working.
- Professional credibility of a free zone licence, potentially attracting corporate clients.
Limitations
- Higher costs than E-Trader or Intelaq.
- Usually restricted to specific activity categories (e.g. media, design, IT, education).
- Does not permit direct mainland retail; if you do business on the mainland, you may need a local service agent or secondary permit.
- Primarily suited for solo professionals.
Read our article here on the opportunities and challenges for freelancers in Dubai.
Free Zone Company with a Flexi-Desk
A Free Zone Company offers a full corporate structure, 100% foreign ownership, and the option to hire staff and sponsor multiple visas. A flexi-desk setup minimises overheads by providing a shared workspace instead of a full office.
Business Structure:
Limited Liability Company (LLC) or Sole Proprietorship under the chosen free zone.
Multi-partner ownership is allowed for LLCs.
Eligibility:
Open to any nationality.
Ideal for entrepreneurs needing visa quotas or planning to scale beyond a solo operation.
Permitted Activities:
A broad range of consulting, trading, e-commerce, and professional services.
Varies by free zone e.g. Dubai Silicon Oasis (DSO), Ras Al Khaimah (RAKEZ), Sharjah Media City (SHAMS), Umm Al Quwain (UAQ FTZ).
How/Where to Apply:
Submit documents to your chosen free zone authority.
Obtain initial approval, pay licence fees, and complete establishment procedures.
Typically requires passport copies of owners and managers, and sometimes a business plan.
Fees:
Usually AED 11,000–18,000 (USD 2,990–4,900) per year depending on free zone, visa quota, and package.
Benefits:
Visa sponsorship for owners and employees (flexible quotas).
100% foreign ownership (no local sponsor needed).
Flexi-desk lets you work primarily from home but still meet free zone rules.
Enhanced corporate credibility—suitable for larger clients or government bids.
Scalable—easily add more visas or activities without changing the licence structure.
Access to a wide range of business activities, including consultancy, digital services, e-commerce, and trading.
Access to business banking, invoicing, and government tenders (depending on the free zone).
Limitations:
Higher annual fees than simpler home licences (Intelaq, E-Trader).
More administrative steps, including potential business plan requirements.
Restricted direct mainland trading; need a local distributor or additional approvals.
You may still need NOC from a landlord if you officially use part of your residence (though flexi-desk covers most address requirements).
At Virtuzone, we specialise in helping entrepreneurs establish free zone companies across the UAE. Our expert consultants can guide you through the setup process, help you select the most cost-effective jurisdiction, and ensure compliance from day one. Whether you’re launching solo or building a scalable team, we’ll help you choose the right package to match your business goals.
Choosing the Right Licence for Your Home Business
Each business licence option in Dubai’s home-based ecosystem caters to different professional profiles, levels of investment, and growth ambitions. Choosing the right one depends on your nationality, visa status, industry, and whether you plan to stay small or scale.
Intelaq Licence – For UAE/GCC Nationals Starting Small at Home
The Intelaq licence is ideal for UAE or GCC nationals looking to launch a small, home-based business with minimal setup costs. It allows for up to three employees, making it suitable for those who may need limited staff support.
Why Choose This Licence?
You want to test a business idea without a large initial investment.
You prefer operating from your residential address.
You plan to offer services that don’t require a commercial space.
Case Study:
Amina, an Emirati based in Dubai, has a background in graphic design and wants to start offering branding and social media design services from home. She doesn’t want a physical office and plans to eventually hire a juniour designer and admin assistant. Intelaq suits her perfectly, providing a low-cost way to start legally and the flexibility to grow within the home setup.
E-Trader Licence – For Dubai Residents Starting Solo
The E-Trader licence is perfect for Dubai residents (regardless of nationality) who already have a valid visa and want to operate a simple, home-based or online business. It’s low-cost and quick to set up but doesn’t allow visa sponsorship for staff or self.
Why Choose This Licence?
You’re a resident expat with a valid visa (e.g. either from under employment or your spouse).
You want to sell services or products online.
You want a fast, low-risk entry into Dubai’s business ecosystem.
Case Study:
Karan, an Indian resident in Dubai on his wife’s visa, is a digital marketing expert. He wants to run SEO and paid ads services for SMEs via LinkedIn and Instagram. With no need to hire employees or lease an office, the E-Trader licence gives him a legal structure, and he can continue working from home without needing an investor visa.
Freelance Visa – For Creative/Tech Professionals Who Need Residency
The Freelance Visa is designed for individuals in media, education, technology, and similar fields who need to self-sponsor and want the benefits of a professional free zone licence. While more expensive than E-Trader or Intelaq, it offers greater flexibility and recognition.
Why Choose This Licence?
You don’t have existing UAE residency and you want to sponsor yourself.
You’re working in a field supported by Dubai’s creative and tech Free Zones.
You want to establish credibility with corporate clients.
Case Study:
Laura, a freelance UX designer from the UK, wants to relocate to Dubai and serve regional tech companies. Since she doesn’t yet have a visa, and her field aligns with Dubai Design District, she opts for a Freelance Visa. It allows her to live and work in Dubai legally, invoice clients professionally, and sponsor her husband on her residency.
Free Zone Company with Flexi-Desk – For Scalable, Professional Ventures
A Free Zone Company is best for those who plan to scale, need to sponsor multiple visas or want a formal company structure with 100% foreign ownership. While the costs are higher than other home business options, the flexi-desk solution keeps rental costs low and meets regulatory requirements.
Why Choose This Licence?
You want to build a team or hire staff under your company.
You require a more professional brand image for B2B services or tenders.
You’re seeking greater flexibility to expand activities or open a corporate bank account.
Case Study:
Samir, a Lebanese entrepreneur, wants to launch a boutique financial consultancy in Dubai and hire two analysts. He needs a proper company name, visa sponsorships, and access to corporate banking. A Meydan Free Zone company with a flexi-desk meets all his needs while keeping operational costs reasonable.
If you’re looking to start a business in Dubai, read our article on ‘15 small business ideas in the UAE‘ for inspiration. If you’re looking to set up your business from home with no intention of setting up a shop, you can read our article on ‘The Best Online Business Ideas in 2025‘.
Get Your Home Business Licence in Dubai Today
Starting a venture from home can be an exciting and cost-effective way to launch or expand your business. Whichever licence you choose, proper licensing will ensure you can legally trade, open bank accounts, and market your services with confidence.
At Virtuzone, we specialise in streamlining company formation and helping you navigate every step—so you can focus on growing your business. Whether you’re a solo consultant, a creative freelancer, or a fast-scaling free zone company, our experienced team is ready to guide you toward a cost-effective and compliant setup.
If you’re ready to start small and build big, get in touch with us today for a free consultation. We look forward to discussing your ambitions and tailoring the perfect home-based business solution for you.
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FAQs
Are There Grants or Government Stipends Available for the Intelaq Licence in the UAE?
Yes, the UAE offers various incentives for holders of the Intelaq licence, including potential eligibility for grants and government stipends. These benefits are designed to support Emirati entrepreneurs who operate home-based businesses. The Intelaq licence also provides additional advantages like lower setup and operating costs, making it a cost-effective option for new entrepreneurs.
Can I Upgrade My Home Business Licence to a Full Commercial Licence in the Future?
Yes. Many entrepreneurs start out with a home-based licence to keep costs low, then switch to a commercial licence once they need a larger space or wish to expand their operations. You can typically cancel your home business licence and apply for a new commercial licence through the Department of Economic Development or a free zone authority.
Do I Need Insurance for a Home-Based Business in Dubai?
While not always mandatory, it is prudent to consider insurance such as professional indemnity (for service providers) or public liability (if clients occasionally visit or you handle sensitive goods). Each business has unique risks, so consult an insurance broker for tailored coverage.
Is it Possible to Store Inventory or Receive Deliveries at My Home Address?
Generally, small-scale storage is permitted if it does not breach residential regulations or create disruptions (e.g. noise, safety hazards). However, large shipments or bulky inventories may require a proper warehouse or commercial facility.
Can I Operate My Home-Based Business Under a Brand Name That Differs From My Personal Name?
Yes. You can reserve a trade name that aligns with your brand when you apply for your licence. Just ensure the name complies with government naming guidelines (e.g. no offensive words, no references to official bodies).
How Does Home-Based Business Licensing Affect Banking and Loans?
You can open a corporate bank account for a duly licensed home business. Banks may request documents like your trade licence, Emirates ID, and proof of address. As for loans, approval depends on the bank’s lending criteria and your financial track record; having a legitimate licence can strengthen your application.
