Online tutoring is one of the many business models that has turned lucrative in post-pandemic Dubai. The landscape of business setup in Dubai has become more conducive to Sunrise Sectors, such as online tutoring, because of the emirate’s progressive policies based on digital transformation. Starting an online tutoring business in Dubai makes sense, as most people now prefer to take lessons online rather than sitting inside physical classrooms.
However, investors need to obtain an online tutoring license in Dubai mainland to start their business, as private tutoring without a permit is prohibited by the government. The licensing process warrants the assistance of business setup consultants in Dubai, given the special approvals needed for the activity. Read ahead to know more about starting an Online Tutoring institution in Dubai:
Approval from Knowledge & Human Development Authority
To start any type of educational business in Dubai, you need to secure approval and a license from the Knowledge & Human Development Authority (KHDA). Obtaining a KHDA license in Dubai is mandatory for starting both online and offline educational businesses in the emirate. KHDA is a government entity that regulates and controls educational institutes, colleges, professional training centres, private schools and online education providers in Dubai.
All educational institutions should comply with the regulations and standards set out by KHDA to operate in the emirate. KHDA is also responsible for ensuring and checking the quality standards in the emirate’s education industry.
Some of the important KHDA rules for setting up an online tutoring business include:
- The applicants must select an appropriate name for the business both in English & Arabic
- KHDA approval is mandatory for advertising the online education business
- The business owners should develop many policies such as student grievance policies and processes
- If the investors wish to provide qualifications, the courses should be accredited by the relevant bodies
- You may require to submit inspections depending on the type of tutoring you intend to provide
- If you plan to teach children, you must complete certain types of mandatory training as specified by the KHDA
Key Steps to Start an Online Tutoring Business in Dubai
Apart from the KHDA license, the entrepreneurs need to secure a trade license issued by the Department of Economic Development (DED) to set up an online education business in Dubai. DED will issue a professional license to the entrepreneurs to start the online tutoring centre in Dubai.
All the professional businesses in Dubai need to appoint a Local Service Agent (LSA), but you can still have 100% ownership of the business. The LSA is not entitled to any shareholding rights in your company. The following steps must be initiated to initiate the process of business setup in Dubai:
1. Choose a Right Activity
As a first step, you need to choose the business activities that you are going to conduct in Dubai. Choosing the wrong activity or conducting an activity that is not in your trade license may attract penalties and punishments. A better strategy will be to hire business setup consultants in Dubai who can help you choose the right activities.
2. Determine a Type of Company
Next, you must ponder over the type of legal structure of the company based on the number of shareholders. You can set up a sole establishment in Dubai as the only shareholder with unlimited liabilities. There are other company structures permitted by the DED, such as a Limited Liability Company (LLC), branch of a foreign company etc. If you are confused about the benefits and implications of each company structure, talk to business setup consultants in Dubai.
3. Select a Company Name
Think carefully while choosing a trade name for your online tutoring business in Dubai. The name must comply with the rules of KHDA as well as the general trade name guidelines issued by the DED.
4. Choose a Business Location
You need to have a physical office in Dubai, even for doing an online business in Dubai. The DED will ask for the address of the physical office before issuing the online training license in Dubai. You can have an office at a business centre at the most sought-after business locations in Dubai, such as Bur Dubai, Karama, Business Bay, Sheikh Zayed Road, Oud Mehta, Deira etc. You must rent the office space and submit the tenancy contract (Ejari) to the DED. Company setup consultants in Dubai can help you obtain a co-working space in any of the business centres on the mainland.
5. Submit the Documents to DED
Submit all the documents, including the application form, tenancy contract, KHDA approval, and the LSA agreement to the DED. The DED will issue a trade license to operate your online tutoring company in Dubai mainland.
Process of Obtaining Online Tutoring License from KHDA
Now, you must complete all the paperwork required to become an online tutoring service provider in Dubai. You will need to perform the following actions:
- File the license application with the KHDA
- Submit passport copies
- Get office plan approvals
- Collect the approval letter from KHDA
- Submit shareholder certificates, LSA agreement or Memorandum of Association (MoA)
- Make the relevant fee payments to receive the online tutoring license in Dubai
Cost of Starting an Online Training Business in Dubai
The cost of setting up an online education business in Dubai is hard to estimate. The costs may vary depending upon the kind of training offered, required teaching materials, and the type of students you will be training virtually. However, a rough estimate of the cost of starting an online tutoring company in Dubai could be anywhere between AED 15,000 and AED 50,000, considering all the license fees and initial contracts. Talk to the best business setup consultants in Dubai to calculate the cost of company formation.
Start an online tutoring business with Jitendra Business Consultants
If you can ensure proper knowledge about the nuances of business setup in Dubai, starting a virtual education business won’t be complicated. However, foreign investors can’t ensure this knowledge due to their lack of experience in the UAE market. Don’t worry; leave that part to the best business setup consultants in Dubai, such as Jitendra Business Consultants (JBC).
JBC is an experienced team of company registration professionals passionate about bringing the dreams of entrepreneurs and SMEs to life. Apart from handling your license procedure, JBC can also help you with drafting documents, selecting an office space, opening a corporate bank account in Dubai and processing your visa applications. Our business setup services in Dubai will make you free of all the groundwork, enabling you to run the business without any headache