Setting up shop without a licence is illegal in UAE


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I have small children so I cannot take on a proper job, but I would like to work from home importing, making and selling jewellery. As this is going to be just a small business run on a part-time basis – I don't want a shop – do I still have to set up a company and pay for an expensive licence? I have been told different things, and I am sure many people run businesses from their homes without a licence and are OK. MD, Dubai

All businesses in the UAE must be licensed. Operating without one is illegal and you can be fined anything from Dh5,000 to Dh50,000. It is also illegal to sell from your home. If you want to trade independently you have to set up a company and have premises; the trade licence alone is likely to cost in excess of Dh25,000 a year. However, if you don’t have a licence, it is possible to sell your wares under the licence of a market or event provided they are set up to do this. However, their licence can only be extended to vendors on the day of the event. Many do break the law by selling from their homes, but the government will take action if it finds out.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with more than 20 years of 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. Readers are encouraged to seek appropriate independent legal advice.

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