Can I host 'open house' events for my unlicensed business in the UAE?


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I have a small business and in the past year I have sold the items I make via a few markets. I don't want to pay for a full licence as it is a sideline, but I would like to know if I can sell some things from my house. I'd like to do some 'open houses' for friends and friends of friends, so do I still need to get any kind of permission as it isn't a shop? Surely I can do what I want from my own home?  SD, Dubai
The law regarding selling of goods, and indeed operating any kind of business, in the UAE is clear. Simply put, it is illegal to trade in the UAE without the proper documentation and licences. Businesses are permitted to sell via specific markets, whether in person or via a website, provided the organisation behind it is properly licenced to do so. This allows some small businesses to sell under the licence of the online store or market, but only via those routes. Any other kind of sale or business requires a proper trade licence, either via a free zone or set up as a LLC. A few other occupations can obtain freelance licences. In all cases, however, it is illegal for residents to sell from their homes and that includes any kind of 'open house'. Any businesses that sell goods or services via social media or from their own home, without the proper permissions, run the risk of substantial fines, of up to Dh50,000, or even imprisonment, for operating a business illegally.
 
I have lived in the UAE for around five years but on my last exit I didn't cancel my visa and have been out of the country for more than six months. I now need to get police clearance from the UAE. Kindly advise if my employer has filed any absconding case and will it have any negative effects on my police clearance certificate. Also, am I able to return? AW, Pakistan
It appears that AW left the UAE without the agreement or knowledge of this employer. It is therefore highly likely that an absconding case was opened against him, partly because employers often need to do this to get the deposit repaid by the Ministry of Human Resources and Emiratisation (MoHRE). He will also be subject to an employment ban in accordance with Article 128 of UAE Labour Law which states: "should the non-national worker leave work without a valid cause prior to the end of the contract with definite term, he may not get another employment even with the permission of the employer for a year from the date of abandonment of the work. No employer may knowingly recruit the worker or retain in his service during such period". This newspaper is unable to confirm whether an employer has registered a case and individuals much check this with MoHRE itself.
Residency visas must always be properly cancelled and so if the employer did not complete this process, on re-entry to the UAE AW will be detained by immigration officials until the visa is cancelled in the system. There will be a fee for this, although this will not be large and it should not take more than an hour or two in most cases.  
The police department of each emirate can issue good conduct certificates and it is possible to apply while out of the country. While absconding is not really a criminal offence, if a case is registered it could affect the issue of the certificate. AW has not advised which emirate his residency visa was issued from and he will need to contact the police in the relevant emirate or the Ministry of the Interior, at www.moi.gov.ae . The standard fee is Dh210, but there will be some additional charges if applying from outside the UAE.

I was deported from Dubai in February 2012 after I was convicted of theft and sentenced to and served six months in prison. I wish to come back and work in the country again but I don't know if I am allowed to come back. Is this possible? RA, The Philippines
Anyone who has been imprisoned for a criminal case of this nature and subsequently deported is likely to receive a lifetime ban. This will prevent them returning to the UAE for any reason. This is stated in Federal Law No 6 of 1973, and Ministerial Decree 83 of 2002 which states that a number of classes of people are prohibited from entering the UAE and this includes individuals who were involved in criminal activities and who were deported in accordance with UAE government orders. Note also that if someone is deported from one GCC country they are likely to be blacklisted in the other five countries in the GCC.

Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with over 20 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE.
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

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

 

 

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Date started: early 2020

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Number of staff: 4

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Ms Yang's top tips for parents new to the UAE
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Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

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