E-trader license in Dubai was introduced in the year 2017 to officially permit the UAE and GCC nationals and ex-pats residing in the Emirates to practice their business activities via social media networks.
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 the most preferred destination by investors for setting up a business. Dubai Authorities spotted the growing trend of online business and introduced a license designed specifically for social sellers, called E-Trader License.
What Is an E-Trade License in Dubai?
The DED Dubai introduced E-Trader License as a license that 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 E-Trade License in Dubai
Here are the benefits of an E-Trader license.
- As mentioned earlier, the e-trader license is introduced to build a sense of confidence among online customers that they are buying products from a legitimate owner.
- While online shopping becomes more secure with the e-Trader License in Dubai, 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 names.
Things to Know before Obtaining the Dubai E-Trader License
An e-trader license in the UAE 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, 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 ex-pat entrepreneurs in connection with online sales. Ex-pat entrepreneurs are not allowed to engage in commercial trading but can provide professional services.
How to Obtain an E-Trader License in Dubai?
The procedure of obtaining the E-trader license for a business setup in Dubai is simple and straightforward. One can easily apply for the license by following these steps:
1. Create a Trader Account
Go to the Department of Economic Development (DED) Dubai Trader website and register.
2. Make the Necessary Payment
The E-Trader License in Dubai costs AED 1,070* and must be renewed every year.
*Prices are subject to change. Kindly connect with us for confirmation.
3. Provide the Required Information
Provide information about social media accounts when registering for the license.
4. Get Your License
Once all the necessary stepwise procedures are completed, you will get the confirmation for the business license within a day or two.
Take advantage of the sizable e-commerce potential of Dubai and obtain the e-trader license to kick-start the online business. We know that the steps are simple and straightforward, 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.
Commitbiz Management Consultants has been in the consultancy business for more than 15 years and are well-versed in 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 the following:
- Business Registration
- Business License
- Intellectual Property
- Accounting and Bookkeeping
- Corporate Secretarial Services
- Local Sponsor
- PRO Services
- Office Space in the UAE.
Contact us today to obtain an e-trader license or any other type of e-commerce license in Dubai.
When was the e-trader license in Dubai introduced?
2017.
For what purpose the Dubai e-trader license was introduced?
E-trader license in Dubai was introduced to officially permit the UAE and GCC nationals and ex-pats residing in the Emirates to practice their business activities via social media networks.
Can we use an e-trade license in Dubai in other Emirates?
An e-trader license in the UAE is specific to one Emirate. It means that the license issued in Dubai cannot be used for trading in other Emirates.
Does the Dubai e-trader license protect intellectual property and trade names?
Yes.