The authorities of Dubai have ensured a friendly business environment making business setup in Dubai profitable. It continues by providing supportive initiatives to entrepreneurs by providing exposure and opportunities to enter the United Arab Emirates (UAE) markets. Due to the growth of e-businesses in the Emirate, the authorities have allowed individuals to conduct online business activities using the e-trader license. It further streamlined the business process by removing intermediaries and easing the legalities involved in establishing an online business presence. Small-scale businesses and freelancers can now sell their products and services through an online platform.
If you wish to understand the necessities and benefits associated with obtaining an e-trader license in Dubai, continue reading.
What is an E-Trade License in Dubai?
Issued by Dubai’s Department of Economic Development (DED), the E-Trade license is aimed at regulating online commerce by increasing sales through social media platforms by ensuring reliability and authenticity. The main focus for issuing the licence was providing exposure to entrepreneurs with limited resources and capital capability. If you want to sell your business offering through social media platforms, obtaining an e-trade license in Dubai is necessary.
Criteria to Apply for an E-Trade License in Dubai
- Must be over the age of 21.
- Need to be a valid UAE resident having a Makani number
- Must be a single owner of a home-based business.
- Reserve a valid trade name fulfilling the naming compliance guidelines set by the DED.
- Allowed to sell only professional services through social media platforms.
What are the Types of E-Trade License in Dubai:
1. Professional e-trade license
This is suitable for individuals or businesses that provide professional services, such as consultancy and accounting among others, through an online platform.
2. Commercial e-trade license
The license authorises you to sell products or services through a website or other e-commerce platforms.
Benefits of Obtaining the e-Trader License in Dubai
Availing the E-Trader License enables you to enjoy numerous advantages, which include:
Simplified Processes
The process of obtaining an e-trader license is straightforward. It is completely online making it accessible for everyone.
Operation flexibility
With good internet connectivity, you can enjoy the opportunity provided by the growing e-commerce industry in Dubai from the comfort of your home.
Increases credibility
Having credibility in the markets plays a big role in sustaining your business. Owning a license from the authorities showcases the legitimacy of the business and boosts customer trust and confidence.
Wide range of activities
From selling products and services to offering consulting services to clients online, the license covers a variety of activities. This flexibility to engage in multiple activities makes it popular among small-scale entrepreneurs and freelancers.
How To Obtain an E-Trader License in Dubai?
Obtaining the E-trader license for starting a business in Dubai is straightforward. You can apply for the license easily by following these steps:
1. Choose a Trade Name
Obtain your trade name certificate from the DED by complying with the naming guidelines.
2. Commercial Registration
It is necessary to register your business operations with DED. You can do so, by providing them with all the essential information regarding your business activity.
3. Create a Trader Account
Visit the DED Dubai Trade Website to create your profile and register. Ensure to check your eligibility for obtaining the e-trading license and then pay the requisite fees.
4. Documentation
Submit a copy of your passport along with passport-sized photos, proof of address having Makani number and details of your social media account. After finishing the documentation process the authorities will verify all your information.
5. Obtain License
Once your application is approved by the authorities, you can obtain your DED e-trader license.
Who Are We?
Seize the substantial e-commerce potential by acquiring the e-trade license in Dubai and embark on your online business voyage. If you are hesitant and need more clarity, skilled business advisors at Commitbiz LLC are ready to assist you.
With over 17 years of experience, Commitbiz LLC are proficient in legal procedures and can handle all your business setup necessities. We ensure a hassle-free process for business incorporation. Contact us today to witness service excellence and turn your business dreams into reality.
Can we use an e-trade license in Dubai to perform activities in other Emirates of the UAE?
No, if the license holder has plans to sell a product in other Emirates, then he/she needs to obtain separate approvals from concerned DEDs.
What products are restricted for sale under the E-Trader License?
Products and services such as tobacco, weapons, alcohol and anything violating UAE copyright or intellectual property laws are restricted.
Does the Dubai e-trader license protect intellectual property?
Yes, obtaining the e-trader license in Dubai will protect the intellectual property of your company.
Are there any tax obligations with the E-Trader License?
Yes, you must pay corporate income tax in Dubai if your annual profit exceeds AED 375,000.