Due to advancements in the use of technology, people have changed the way they purchase a product or avail of a service. From times when people had to visit a brick and mortar store, now they can buy anything with just a tap of a finger. Due to this online craze, anyone can now start a small business and sell it to customers online.
UAE has been a popular business spot for all sorts of businesses for quite a while now. One of its Emirates, Dubai, is a hub and most preferred destination by the investors for setting up a business. Dubai Authorities spotted the growing trend of online business and introduced a license designed specifically for the social sellers, called E-Trader License. E-Trader License in Dubai was introduced in the year 2017 to officially permit the UAE and GCC nationals and expats residing in the UAE to practice their business activities via social media networks.
What is an E-Trader License?
The DED Dubai introduced E-Trader License as a license which allows UAE and GCC nationals residing in Dubai to practice business activities via different social media platforms. An E-Trader License can be registered under the name of a single owner only. The license holder cannot open a shop or issue the visa, and in case of a legal clash, the Licensee alone will be held responsible. The License is aimed at empowering home entrepreneurs that do business primarily via social media. The Licensee intends to make it easier for traders to do business and to give confidence to consumers that they are buying from a legitimate, licensed, social-selling business.
Benefits of Obtaining an eTrader License in Dubai
Here are the benefits of an E-Trader license.
- As mentioned earlier, the eTrader License is introduced to build a sense of confidence among the online customers that they are buying products from a legitimate owner.
- While online shopping becomes more secure with the e-Trader License, it also protects the trade name. It enables the license owner to reach out to customers across exhibitions and conferences.
- The Licensee is also permitted to sell through online marketplaces like Amazon.ae
- If a licensee wishes to sell outside Dubai, they can obtain approval from the DED of the particular Emirate. If approved, one can expand its business in the UAE.
- One can also register with the Dubai Chamber to export and import products
- The License protects intellectual property and trade name
Things to Know before Obtain the eTrader License in Dubai
An eTrader license is specific to one Emirate. It means that the License issued in Dubai cannot be used for trading in other Emirates. If the license holder has plans to sell a product to other Emirates, then he/she needs to obtain separate approval from concerned DEDs. And for this, he/she needs to acquire another E- trader license.
Apart from this, the UAE and GCC nationals can engage in both commercial and professional trading via social media accounts. It means that they are permitted to sell physical goods and supplies along with services via social media platforms. There are a few restrictions for expat entrepreneurs in connection with online sales. Expat entrepreneurs are not allowed to engage in commercial trading but can provide professional services.
Procedure to Apply for an eTrader License in Dubai
The procedure of obtaining the E-trader license in Dubai is simple and straight-forward. One can easily apply for the License by following these steps-
- Go to the Department of Economic Development (DED) Dubai Trader website
- Create a Trader account
- Register and make the necessary payment
- Provide information about social media accounts when registering for the License
Once all the necessary stepwise procedures are completed, you will get the confirmation for the business license within a day or two. The current fees of the E-Trader License in Dubai are AED 1,070 and must be renewed every year.
Take advantage of the sizable E-Commerce potential of Dubai and obtain the eTrader License to kick-start the online business. We know that the steps are simple and straight-forward, and anyone with basic knowledge can apply online. But, expert advice should always be initially taken when you have a vision of setting up an online business as you should know what is best for you. And that is when we at Commitbiz come into the picture.
How can we help?
Commitbiz Management Consultants has been in the consultancy business for more than 13 years and are well-versed with the legal proceedings in the UAE. Our specialists can handle all the business setup requirements of an entrepreneur and make the process smooth and hassle-free. Our services include –
- Business Registration
- Business License
- Intellectual Property
- Accounting and Bookkeeping
- Corporate Secretarial Services
- Local Sponsor
- PRO Services
- Office Space in the UAE
Contact us today for more information.