Here are the steps for starting your own home business
The acceleration of life and the change in its pattern have had an impact on the behavior of consumers, as they began to go shopping and meet their needs through electronic stores and electronic sellers, and in this regard; social networking sites take a large and influential space, and it has become a duty to organize home projects that display their products and services online.
The Ministry of Commerce and Industry; by a decision of its Minister, launched an initiative to grant licenses to conduct business in homes, which consists of activities that do not require high costs, rely on personal skills primarily and do not use disturbing equipment for comfort or dangerous materials, and the aim is to obtain a degree of profit and save costs Living for the licensee and his family.
Any home project owner should be keen on obtaining the license, as it guarantees the right of the seller and the buyer and organizes these projects in a way that supports their owners, in addition to giving confidence to the consumer to deal with these projects and benefit from their services and products.
The Ministry has set general conditions for granting licenses to conduct business at home, which are:
- The applicant must be at least 18 years old.
- That he be a resident of the house, and that the activity required to be licensed is among the activities whose operational nature is consistent with the specifications of the life of the residential community.
- Obtaining the necessary approvals to practice the required activity from the competent authorities.
- That the license be limited to one activity only.
- That a person does not have more than one license in the same house.
- That the activity required to be licensed does not affect traffic in the area, or cause disturbance to the residents.
- Commitment not to practice direct selling to the public from home, with the possibility of delivering orders to homes.
A question arises in our minds about what activities are allowed to be practiced in home projects and what is the value of obtaining a license. Indeed, the decree regulating home businesses limited them to specific activities whose practitioners can grant licenses to it. It includes the following activities:
- Sewing and embroidery (200 QR(.
- Event services (1000 QR(.
- Weddings and events photography.
- Making antiques and gifts, processing and wrapping gifts.
- Handcrafted cards and gifts.
- Arrangement of natural and artificial flowers.
- Electronic services (500 QR(.
Includes: Electronic designs using the computer, with the exception of engineering designs, which fall under the jurisdiction of engineering offices.
- Service work (500 QR(.
Such as: Cooking, copying, and packing and binding school books.
- Beauty activities (1000 QR(.
Such as: Working and preparing perfumes, tobacco and cosmetics.
- Food activities (500-1000 QR(.
Such as: Preparing coffee, spices and spices, and preparing meals.
What is the difference between a home license and a commercial register?
The home license shares with the commercial registry in their owners obtain a (trade name) where the license holder can put his commercial name on the products or services he provides and market as posting on social media, and the name is protected by law.
The point of difference between the commercial registry and the home project is the identification of the home business’s activity with the aforementioned six points, while access to the commercial registry is not restricted to a specific activity, so the business owner can practice any activity he wants.
The home project doesn’t require the existence of a commercial lease contract for a shop or office, on the contrary; in order to extract the commercial register, the merchant must conclude a lease contract in order to start his business, in order to save the additional expenses that may be paid by the owner of the home project.
Do home licenses owners need to register on the tax website?
Yes; the home license must first be registered and obtained, and then submit the tax return for 12 months. That is, whoever extracts the home license for the first time is required to submit a simplified tax return for the next 12 months. As for those who previously registered 12 months have passed since their license, they are required to submit tax declaration.
Steps to apply for a license:
Submit the application electronically:
- Choose the trade name.
- Log in to the investor’s electronic services by entering your username and password.
- Choose the “Commercial Licenses” service, then “Request a Home License”.
- Enter all the required data and attach the following documents:
- An undertaking from the licensee (not to violate the terms of the license(.
- A copy of the applicant’s ID card.
- The title deed only in the case where the type of property is registered as a villa or a traditional house, or in the case of (empty land) registration a building completion certificate is required.
- A no-objection letter from the owner and a copy of the ID card (in case the house is rented).
- A no-objection letter from the guardian and a copy of the ID card (in case the license is for a family member “first-degree relatives only”).
- In the case of food activity, a copy of the health certificate of the license holder and the requirements of the civil defense.
- Pay the prescribed fees for applying for a home license, amounting to 1,020 QR.
Owners of projects can also submit the application on paper by filling out the form available on Hukoomi website and submitting the required documents to the public service employee of the Ministry of Commerce and Industry or one of its branches.
What are the civil defense requirements?
- Battery operated fire detector.
- Fire extinguisher.
- Fire blanket.
In short, with digital technologies rapidly advancing, a digital commerce mindset is essential. For those who wish to increase their income and because the law exists to regulate the relations of individuals with each other and in order to keep pace with the immediate developments that arise with the passage of time, there are new legislations that protect the seller and the consumer at the same time.