How to Obtain an E-Trader License in Dubai?

by Zaara 04, Mar 2020

How to Obtain an E-Trader License in Dubai?

Have you ever thought of starting a company from home on social media? Perhaps you’d like to sell handmade accessories, clothes, or digital marketing services. Are you wondering if it is legal to sell online in the United Arab Emirates? Well, the answer is yes, given that you have a license from DED for selling products online.

Dubai has set its effort into becoming the principal e-commerce hub and has rolled out new schemes and initiatives to foster economic activity. One such program has been the E-trader license in Dubai. It was launched in the year 2017, and help home entrepreneurs to kick-start their social media business. Read on to our blog to discover more about this home business license in Dubai.

What is the E-Trader License in Dubai?

E-Trader license in Dubai, UAE, was launched by the Department of Economic Development and is aimed at home businesspersons doing business over social media. The E-trader license will make it easier for individuals or single-owned companies to sell their services and products on social media. It will also boost the confidence of customers when they are shopping online. The announcement of E-trade license is followed in the wake of efforts to crack down on counterfeit and false products being sold on social media platforms like Facebook and Instagram. The license aims to regulate the sale of products and services conducted through social media in Dubai.

Benefits of Getting a DED E-trader License in Dubai

The licensing initiative will enhance transparency and customer confidence in online shopping. Apart from this, here are a few more benefits of obtaining eTrade license in Dubai are.

  • Trade name protection
  • Take advantage of banking offers
  • Enable the project owner to participate in conferences and exhibitions
  • View products in consumer stores
  • Obtaining Dubai Chamber membership to facilitate export and import operations
  • Training and workshops
  • Temporary employment services
  • Ads on social media

Who Should Apply for an E-Trader License in UAE?

Here is the list of people who can apply for the trader license –

  • Individuals and home-based businesses who endorse and sell products online via websites or social media can apply for an E-trade license.
  • All online sales via a valid social media account require an E-trader license. This applies to mothers and housewives who stay at home and engage in the sales of hand-made items, fashion apparels, jewellery, and other goods and services via various online platforms.
  • E-trader license in Dubai is applicable for the home-business endeavours for whom office space requirement is not mandatory as Ejari documentation is irrelevant here.
  • E-trader license is applicable for freelancers who offer various online services. A Home-based business owned by a single individual that does not necessitate a local partner can apply for an E trader license in Dubai.

The eTrader license can be registered under the name of a single owner only. The owner must be an Emirati or GCC citizen aged 18 or above residing in Dubai. They cannot open a shop or issue visas, and in case of any legal dispute, the licensee alone will be held responsible.

Why Obtain Dubai E-Trader License?

Obtaining this license will help individuals lawfully promote and sell products and services through their social media pages, including Instagram, Facebook, and more, or on a personal website. Once can also feature their products and services on online marketplaces. With having this license, individuals and single-owned businesses can lawfully participate in and reach out to consumers at exhibitions and conferences. It will also safeguard your trade name and any other intellectual property. The DED also holds workshops and training for E-trader license-owners that you can attend.

Before obtaining this license, there are a few conditions that you must be aware of. Like, UAE and GCC nationals with the license can conduct commercial activities like selling physical products and goods, and professional events on their social media platform. For others, the conditions of selling products depend on their nationality. In a general note, non-GCC ex-pats can sell specialized services through their social media, but not commercial products. This could include repair, maintenance, event management, and photography services. You can find out more about which nationalities are qualified for the license and what you can sell through social media when you register for the license.

Restrictions of Dubai E-Trader License for Expats

There are some downsides one must be aware of, especially the ex-pats before obtaining this license. They are –

  • Does not provide the ex-pat with a residence visa
  • Does not enable the ex-pat to employ staff - effectively, the individual is a sole trader working on their own
  • Does not enable the ex-pat to lease commercial premises e.g. office space, workshop or commercial kitchen
  • Does not enable the ex-pat to sell goods, either retail or wholesale (however, do note that Emirati nationals and GCC nationals can sell goods with the e trader license)
  • Restrictions on activities by nationality - check in advance!
  • Individual ownership - so friends and family can't collaborate on a new business idea.

Procedure to Register the License in Dubai

The process of getting the E-trader license in Dubai is simple and straightforward. One can easily apply for the license by following the steps-

  1. Go to the DED Trader website
  2. Create a Trader account
  3. Register and make payments
  4. Provide information about your social media accounts when registering for the license

You will get the confirmation for the business license within five to ten minutes. The E-Trader license Dubai cost is AED 1,070 and is renewable every year.

How can we help?

We at Commitbiz cut the red tape and the jargon to make the process of obtaining a license hassle-free. Should you decide to start your online business in Dubai, then get in touch with us. Our business consultants have years of experience in this field and can make the process hassle-free. Contact us today- we’d be happy to help you.