Question: I am a stay-at-home mum and while I do not want to go into employment, I have skills I can use to earn some money working from home. I plan to do some social media work for small companies. Do I have to set up a proper business?
I have seen that setting up a business can easily cost more than Dh10,000 ($2,722), so that does not make it worthwhile for me. This will only be a few hours a week. JB, Dubai
Answer: To run any kind of business in the UAE, a trade licence is required. There are no exceptions, no matter the size or turnover of the business. The same applies to any hobby business where money changes hands.
Working in Dubai, and the wider UAE, without a valid trade licence, or with an expired one, can lead to serious penalties, including substantial fines. The fines start at around Dh5,000 for operating without a licence. There are daily fees for expired licences, which vary between Dh250 and Dh1,000 each month.
Other penalties include the suspension of the business, legal action and potential blacklisting of the individual. For larger companies, management can be deported as this is considered to be a serious breach of UAE law.
There are multiple options for trade licences, depending on the type of business, whether visas are required and how many, and location within the UAE.
As JB already has a Dubai residence visa, and is simply selling a service or consulting, she should be eligible to apply for a DED (Department of Economic Development) e-trader licence.
This is the easiest and cheapest option, with an annual fee of Dh1,070, plus a Dubai Chamber fee of Dh300.
An application can be made online or in person at the DED cafe in Palm Strip Mall, Jumeirah Beach Road, Jumeirah 1. I recommend visiting in person.
Provided the total gross income, or business turnover, is less than Dh375,000 a year, JB will not need to register for VAT or complete quarterly returns. She should still maintain accounting records and issue formal online invoices for her services, as this will become mandatory for all UAE businesses in the next few years.
Q: I was living in Sharjah for four years, but I was caught when I overstayed my visa for a year. I was then deported to Nigeria in 2021. There is no good work here, so I want to know if I am able to go back to the UAE and find another job. MA, Nigeria
A: There are two types of deportation that take place. One is a judicial deportation following a criminal case. The other is an administrative deportation, usually following a visa overstay. This happens when someone has overstayed for a long period, not a few days or weeks.
Someone who has been deported may only return to the UAE if they obtain special permission.
According to Article 28 of Law No 6 on Entry and Residence of Foreigners: “A foreigner who has been deported may not return to the country except with special permission from the director general of the Federal Authority for Identity and Citizenship.”
Only people who have been deported for an administrative reason can appeal to return by asking for the entry/travel ban to be overturned.
There are two types of deportation: a judicial deportation following a criminal case; the other is an administrative deportation, usually following a visa overstay
Keren Bobker
There are a few ways to apply. One way is through the website of the Ministry of Interior. An application can also be made to the Public Prosecution to cancel the deportation order. In each case, the individual can appoint a lawyer to submit a petition on their behalf.
The person must state reasons for their application and submit supporting documents. As well as their current, valid passport, this could include proof of regular employment and a good conduct certificate from the police in their home country confirming they do not have a criminal record.
The application is sent to a committee that decides whether to lift the order. Approval is not guaranteed and all applicants need to be aware of the limited success rate.
If the deportation has been issued only from Dubai, it may be possible to apply to overturn the ban online through the website of the Public Prosecution.
Contact Keren Bobker at keren@holbornassets.com or at www.financialuae.com
The advice provided in our columns does not constitute legal advice and is provided for information only
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
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Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
