The Department of Economic Development introduced the e-trader license in Dubai to handle the sales of online products through social media platforms. With the help of this license, UAE residents and GCC residents living in Dubai can perform business activities through social media networks and marketplaces. This license also gives confidence to online customers as it controls any kind of fake products and services on online marketplaces.
You can register for your E-trader license under the name of a sole proprietor. If you plan to run an online business from home without any office, then an e-trader permit is the best option. E-traders can not open a shop or issue work visas. Additionally, the authorities will hold the license accountable if there is any legal issue. To get an e-trader permit, you must create an account on the DED trader website and register. Let us look at the essential aspects of the e-trader license in Dubai.
Who Should Register for an E-trader License in Dubai?
You can apply for an e-trader license in Dubai if you are doing one of the following,
- Home business owners or individuals selling their products through social media and other marketplaces can register for an e-trader license.
- If you are running a home business where an office is not required, then you can apply for an e-trader license.
- All stay-at-home individuals selling homemade items, jewellery, clothing, and other items online need an e-trader license.
- A trader license is suitable for the sales of goods through e-commerce websites.
- It applies to freelancers offering their services via online platforms.
- All UAE and GCC nationals are eligible to apply for an e-trader license. Foreigners of certain nationalities can also apply.
- A home-based business owner who does not require a local partner can also apply for an e-trader license.
- The license applicant must reside in the UAE and have a minimum age of 21.
Process of Applying for an E-trader License Dubai
The DED trader license in Dubai is an ideal option for entrepreneurs looking to work online through social media platforms or websites. Here’s a step-by-step guide to help you with the E-trader application.
Eligibility Criteria
It is essential to check your eligibility to apply for an e-trader license. You must be a resident of the UAE, at least 21 years old, and want to operate individually rather than set up a company.
Register with DED
Visit the official DED website and create an account. Fill in the application form and provide details about your business activities and social media accounts, as well as your business name and other required information. After completing the registration process., pay your fee.
Select a Business Name
Select an appropriate and unique name for your business, following the guidelines of the Economic Department.
Gather Required Documents
The documents required for an E-trader license by the Department of Economic Development (DED) are given below.
- Valid Emirates ID
- Passport photocopy
- Passport size photographs
- Proof of home address
Other required documents required by the DED authority
Reviewing Application
After you submit your application, the economics department will review it. You can track the application through the DED’s online portal.
Getting E-Trade License Dubai
After your application is approved, you’ll get your DED e-trader license. It is important to comply with the regulations set by the authorities.
Purpose of Getting an E Trader License Dubai
Entrepreneurs running their businesses through social media do not have to spend huge amounts on setting up their businesses or marketing their products or services. Let us look at the key purpose of getting an e-trader license.
- This license is appropriate for small and home-based companies and helps regulate business activities over online platforms.
- The DED trader license allows UAE residents and GCC nationals to sell products and services. Foreigners are only allowed to provide professional services in the UAE. They are not allowed to trade, manufacture, or sell their products.
- With this license, businesses can sell their products and services without a physical office or store.
- The license allows UAE nationals, GCC nationals, and expats to run their businesses online and participate in the UAE’s digital economy.
- It removes the need for a physical store, which helps reduce operating expenses and provides flexibility in how and where the business operates.
- The capital requirements are very low, making it an attractive option for new startups to enter the market.
- An online business does not need a local sponsor, which makes the process cost-effective and time-saving.
- The Department of Economic Development (DED) manages the applications and issues the e-trader license in Dubai.
Required Documents for E-Trader License Dubai
The documents required by the authority for an e-trader license in Dubai are as follows,
- A valid Emirates ID
- The applicant must be residing in the UAE
- The applicant must be of the age of 21 or older
- Getting the name registered with the authorities and attaching the approval with the application.
- Proof of residence (Ejari is not required)
Remember that the authorities require these documents if you are setting up a business from home; the requirements will be different if you want to set up a company in Dubai.
The issuance of a UAE e-trader license can take up to 3-5 business days. After issuing the payment voucher, you must submit the payment to the authorities within 24 hours. The validity of the license is one year, which you should renew after a year.
Cost of E-Trader License Dubai
AED 1070 is the essential cost of getting an e-trader license in Dubai. Additional fees, such as membership to the Dubai Chamber of Commerce, which is 300 AED, and any other professional services can also increase the cost of your license.
Allowed Business Activities under UAE E-Trader License
Below are the activities you can conduct under a UAE e-trader license.
- Online sales of accessories, garments, homemade products, electronics, and other commodities are allowed.
- Services such as web development, content creation, graphic design, business consultancy, and other related services are allowed under an e-trader license.
- Providing online educational services or courses.
- Marketing and selling products via online social media.
- Online coaching and consulting services.
- Digital marketing services tailored for clients include online advertising, management of social media, and content strategy.
- You can also sell digital products, including software, multimedia, e-books, and other digital items.
The trade license is also applicable for the following,
- Staying at-home spouses
- Professionals who do not want to spend much money on a business setup but want to provide online services can get a trader license.
- To start a side business in your free time.
- New entrepreneurs experimenting with new business ideas.
- To test the success rate before starting a new business.
- To test entrepreneurial skills.
Benefits of E-Trader License Dubai
The following are the benefits of getting a DED trade license in Dubai.
- The DED trader license allows UAE residents and GCC nationals living in Dubai to do business through social media platforms and websites.
- It allows you to register and protect your trade name.
- It can be registered in the name of one person only. The entrepreneur can not open their shop or issue visas for employees, and if there is any legal issue, the license will be held responsible.
- The DED E trader law helps reduce the selling of any fake products on social media.
- The license boosts confidence among sellers and purchasers as a registered name with DED is considered trustworthy. It also allows the trader to attend all the activities or training organized by the economic department.
After getting your e-trade license, you can sell your products or services through secure internet channels and online social media platforms.
Endnotes
Obtaining an e-trader license in Dubai is a great choice if you want to start an online business and sell your products or services through social media platforms. The license has many benefits and allows traders to legally operate their online businesses from the comfort of their own homes.
To understand the complex process of getting your license and other requirements, contact Al-Riyady. Our team of experts will guide you through the process and help you get your trade license according to your business needs, resources and goals. We can also help you with accounting services, auditing, and business valuation.
