Dubai is one of the most popular travel destinations in the world, making it an excellent location to start an Airbnb business. With its booming tourism industry, world-class infrastructure, and strong short-term rental market, setting up an Airbnb company in Dubai can be highly profitable. However, operating legally requires compliance with specific regulations. In this blog, we’ll walk you through the step-by-step process of setting up a successful Airbnb company in Dubai.
Step 1: Understand Dubai’s Airbnb Regulations
Before starting an Airbnb business, it’s crucial to understand the legal framework. In Dubai, short-term rentals are regulated by the Dubai Department of Economy and Tourism (DET), which oversees licensing and compliance. Unlike other cities where individuals can freely list properties on Airbnb, Dubai requires a Holiday Homes License for short-term rentals.
Here’s what you need to know:
- Both individual property owners and companies can operate short-term rentals.
- Properties must be registered with Dubai Tourism (DET).
- Listings must comply with quality, safety, and cleanliness standards.
- A Tourism Dirham Fee (AED 10-15 per bedroom per night) applies.
- Operators must maintain guest records and report occupancy to DET.
Step 2: Choose Your Business Model
There are two main ways to run an Airbnb company in Dubai:
- Owning and Renting Properties: You purchase or lease properties and rent them out as short-term holiday homes.
- Property Management Services: You manage properties for other owners, earning a percentage of rental income (common for investors who don’t want to manage properties themselves).
If you plan to manage multiple properties, setting up a company is the best approach.
Step 3: Set Up a Legal Business Entity
To operate legally, you need to register your company with the Dubai Department of Economic Development (DED). Here’s how:
Company Setup Options
- Mainland Company: Allows you to operate freely within Dubai and globally.
- Free Zone Company: Offers 100% foreign ownership but may have operational limitations.
Steps to Register a Company
- Choose a Business Name – Follow DED’s naming regulations.
- Apply for Initial Approval – Submit required documents to DED.
- Obtain a Trade License – Choose the business activity related to holiday home rentals.
- Register with Dubai Municipality & DET – Required for short-term rental permits.
- Open a Business Bank Account – To manage finances professionally.
The total cost of setting up a holiday home business in Dubai can range from AED 5,000 to AED 15,000, depending on the business structure and licensing fees.
Step 4: Obtain a Holiday Homes License
Once your business is registered, you need to obtain a Holiday Homes License from Dubai Tourism (DET). Here’s how:
- Apply Online at Dubai DET Portal
- Submit the Required Documents:
- Passport copy (if foreign investor)
- Emirates ID (for UAE residents)
- Proof of property ownership or No Objection Certificate (NOC) from the landlord
- Ejari tenancy contract (if leasing properties)
- Business license copy
- Pay the Licensing Fees
- Pass a Property Inspection (to ensure compliance with safety and cleanliness standards)
- Receive the Holiday Homes Permit
After approval, you will receive a permit number to legally list properties on Airbnb and other platforms.
Step 5: Register Properties & Ensure Compliance
Every property listed under your Airbnb company must be registered with DET and meet the following requirements: ✅ Fully furnished with essential amenities. ✅ Fire safety measures (smoke detectors, fire extinguishers). ✅ Regular cleaning & maintenance. ✅ Guest support and concierge services. ✅ Tourism fees & VAT compliance (5% VAT if annual revenue exceeds AED 375,000).
Step 6: List Properties on Airbnb
Once all approvals are in place, you can start listing your properties on Airbnb:
- Create a Professional Business Account on Airbnb.
- Optimize Listings with high-quality images and detailed descriptions.
- Use Competitive Pricing to attract bookings.
- Provide Exceptional Guest Experiences to earn 5-star reviews.
- Offer 24/7 Support & Cleaning Services to ensure smooth operations.
Step 7: Market & Scale Your Airbnb Business
To maximize profits, you need to actively market your Airbnb listings and expand your portfolio.
Marketing Strategies:
- SEO-optimized Airbnb Listings (use relevant keywords in descriptions).
- Leverage Social Media Advertising to attract tourists.
- Run Google Ads & Influencer Campaigns.
- Partner with Local Travel Agencies & Tour Operators.
Scaling Your Business:
- Acquire more properties or partner with property owners.
- Offer additional services like airport transfers, guided tours, and housekeeping.
- Automate operations with property management software.
Why with Firmz Business Setup:
Firmz Business Setup provides a distinct advantage in obtaining offshore business license. With expertise in UAE business regulations, personalized solutions, and a comprehensive service range, Firmz Business Setup ensures a smoother and cost-effective license acquisition process. The team’s commitment to ongoing assistance contributes to the success of your business setup journey in Dubai.