Dubai E-Trader License: Application Process and Requirements
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Overview
Dubai is a global business hub which attracts entrepreneurs with unparalleled opportunities. The Department of Economic Development (DED) E-Trader license plays a significant role for anyone running a social media-based online business.
So, are you planning to start your dream business in Dubai? Wondering about its application process, requirements and fees? This is where you need to know about the e-trader license Dubai. Obtaining this license will make it easy for you to operate your small business through digital channels from the comfort of your home. For example, one can sell handmade accessories via social media with an E-Trader license.
This comprehensive guide explores the license, covering the application process, Dubai e-trader license requirements, and several benefits it offers to businesses in the UAE.
What is an E-Trader License?
The E-trader license in Dubai was launched by DED in 2017. It is a great thing announced for the desired home entrepreneurs who are looking forward to starting their business through social media channels. The license enables UAE and GCC nationals who are residing in the country to sell their products and market their services on social media. Moreover, it attracts customers and boosts their confidence when they are shopping online.
In response to efforts to combat fake products on social media accounts like Instagram, DED introduced the e trader license in Dubai. The license seeks to regulate the sale of online services and products through the platforms in a safer way in Dubai.
Keep in mind that this license is only applicable to online businesses. Suppose, a business starts its physical location; the license will no longer be applicable. Moreover, this license gives permits to non-GCC expats to sell their professional services via social media. But they are prohibited from selling physical products.
The business owner must obtain external approvals from the relevant authorities to sell in other emirates, which may require an additional license for that emirate. This is all about – what is an e-trader license is.
What is the Purpose of E-Trader License?
As everyone knows, social media is now more than just a digital platform to make connections. Over time, it has become a medium for business owners to promote their brands and sell their products. So, it is an excellent marketing tool. With this license in Dubai, it has become easier for business owners to pitch and sell their products through social media. The license is not just a marketing tool but also acts as a medium between businesses and buyers.
With this trader license Dubai, business owners can operate their business online from anywhere. The only thing they need is a stable internet connection. The license gives you the authority to sell products and services legally on social media platforms. This will help you attract more audience and form a huge customer base.
Requirements to get an E-Trader License in Dubai
Eligibility
The age of the applicants must have to be at least 21 years.
All UAE and GCC citizens and expatriates are eligible to apply for the license.
Applicants must be valid UAE residents and they should own a valid Emirates ID.
UAE nationals can apply without any restrictions.
Applicants must submit identification, including a UAE resident visa and an Emirates ID.
The applicants need an approved trade name for their business. If you do not have an authorised trade name, you will be rejected.
The license must be registered under one individual’s name. The individual’s name must match with the trade name.
Documents Required
The applicants must submit their relevant documents, such as their address, residency, and age, to DED in order to obtain the E trading license in Dubai. The license will help to promote your businesses from residences.
Valid Emirates ID
Trade Name Registration Approval
Proof of Address (Makani Number)
How do you apply for an E-Trader License in Dubai?
Step 1: Eligibility Check-Up
You need to ensure that you qualify to get the license. As you already know, you need to be a UAE national, a GCC citizen or an expat living in Dubai. The business must be entirely online to be operated through social media sites.
Step 2: Select Your Business Type
Next, you need to choose the business activity from the list given by the DED. The options include everything from selling handcrafted goods to providing digital marketing services.
Step 3: Register your business on the DED Trader Platform
Visit the official DED Trader website to create an account. To do this, you need to submit your Emirates ID, business information, and contact details.
Step 4: Submission of required documents
Make sure to gather and prepare the required documents to submit through the site. You need to submit a copy of your Emirates ID, Proof of residence and business activity description.
Step 5: Make the fee payment
You need to pay the given fee of AED 1,070. You can make this payment online from the official site.
Step 6: Obtain your license
Once your application is approved and the fees are paid successfully, you can obtain the license electronically. You will also be permitted to operate the business legally.
How Much Does E-Trader License Cost in Dubai
An E-Trader License in Dubai is AED 1,070. This e trader license Dubai cost is the base fee. The charges can increase based on the add-ons and specific professional services you have chosen. Therefore, the total cost may increase depending on the additional services. Moreover, every business needs membership in Dubai, and the E-Trader license costs AED 300 extra.
List of business activities permitted under the e-trader license
They sell products online, such as handmade crafts, clothing, electronics, and accessories.
Operating online service-based businesses, such as digital marketing, graphic design, content writing, web design and development, etc.
Operating and selling online educational materials, programs and courses.
Selling digital products.
Online consultation or coaching services.
Activities not covered by the e-trader license
Physical product storage or selling
Holding retail sales
Finance services
The eTrader is prohibited from opening a shop or issuing visas. Also, in the event of a legal dispute, the licensee will be held solely responsible.
Benefits of Dubai E-Trader License
| Legally Operate Your Business Activities – | The license stands as a legal framework for individuals to run their online businesses legally in Dubai. Moreover, it enables entrepreneurs to operate within Dubai's regulatory framework. |
| Enhances Customer Trust in the Business – | Owning a recognised and regulated license boosts customer confidence and enhances the legitimacy of your business. It helps your business appear more trustworthy to potential customers. |
| Simplifies Your Business Setup – | The license is quicker and easier to obtain compared to other business licenses in Dubai due to its simple online application process. It offers a more straightforward approach to online business registration. |
| No Need for Physical Location – | The license does not require a physical business location, unlike traditional business licenses. This benefit is especially useful for businesses that operate solely in the digital space. |
| Operate your Business from Anywhere – | You can run your business from anywhere in the world as long as you have a valid internet connection. This flexibility allows you to operate your business remotely. |
E-Trader License Dubai Renewal Process
Here is the renewal process of E-Trader License Dubai;
Select ‘Renew License’ under My Transactions.
Navigate to the ‘License Renewal Information’ section.
Enter your license number.
Click on the Renew process
Frequently Asked Questions on Dubai E-Trader License
Can non-residents of Dubai apply for the E-Trader License?
The e trader license is only applicable to GCC citizens or UAE residence visa holders. So, if you are an expat, you first need to obtain a UAE residence visa.
Can I get a visa for an e-trader license in Dubai?
No, at first, you have to apply for the Dubai visa and then apply for the e-trader license.
How long does it take to get an e-trader license?
You can obtain your Dubai e-trader license within three to five business days. Make sure to make the fee payment within 24 hours after getting the payment voucher.
Is renewal mandatory for an e-trader license?
Yes, the license renewal is mandatory. It has been done yearly in order to operate your business legally in Dubai.
What is the difference between an e-trader and an e-commerce license?
E-trader licenses allow you to operate business activities through social media platforms, while e-commerce licenses let you operate on other online websites as well.
Is the DED E-Trader covering only Dubai, or is it available all over UAE?
As you know, the DED license gives permission to UAE nationals and GCC citizens to provide their services or sell their products in Dubai. There may be certain requirements for selling across the UAE.
Do I need to pay taxes with the E-Trader License?
Yes, you have to pay corporate income tax when your annual profit exceeds AED 375,000.
Can I use the E-Trader License to sell products internationally?
Yes, you are allowed to sell goods internationally with your E-Trade License. However, this may require additional requirements, registrations or permits.
