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e-trader license dubai
  • By Business Consultant
  • January 6, 2025

Imagine running a thriving online business in Dubai, home-based with no physical office hassles. Sounds exciting, doesn’t it? Well, it is absolutely achievable with e-trader license Dubai. Dubai’s population is ahead in many aspects, one being its fashion and lavish lifestyle of course, along with being highly adaptive to digital trends. Dubai is filled with people who are ready to spend money on buying products and services online as it brings them a lot of convenience.

The e-commerce market in the city continues to shine, with demand increasing like never before. This presents a massive opportunity for those who want to engage in selling products and services through social media, e-commerce websites and other online channels.

The e-trader license in Dubai is issued by the Department of Economic Development (DED) and lets business individuals and entrepreneurs delve into world online business and become part of Dubai’s revolutionary digital economy. If you also cherish the dream of running your own online business in Dubai, then this guide is meant for you. You will get to know the ins and outs of the e-trade license Dubai including its process and requirements and how much it costs. Basically, you will get prepared to run your dream business with confidence in this dynamic city.

Growing e-commerce sector in Dubai

Usage of social media platforms and online platforms for trading has gained significant importance as it brings convenience for both sellers and buyers. For sellers, it means more options to showcase products, reach a wider customer base, and interact personally with customers. And for consumers, it brings the convenience of choosing products through screens and getting them delivered to their homes. Dubai is following the same trend and the e-commerce business sector here is thriving.

The Dubai Chamber of Commerce and Industry predicts that e-commerce is set to generate sales of $8 billion by 2025 as the internet penetration rate in the UAE is almost 100%. So, when we talk about the opportunities for business individuals and investors in online business space in Dubai, only sky is the limit!

What is e-trader license in Dubai?

The Dubai e-trader license by DED is a special permit that allows individuals and entrepreneurs to sell products and services directly from their homes without requiring a physical office space. Entrepreneurs of the modern era are moving beyond traditional marketing channels and exploring more digital options. More and more individuals are starting to sell their products and services through social media platforms, personal websites and online channels.

To facilitate this in Dubai, the e-trader license was introduced as an initiative by DED to help home-based and solo entrepreneurs thrive in the online space and legally conduct online commercial activities within the mainland jurisdiction of Dubai. On top of that, the e-trader license protects your brand name and intellectual property while ensuring your online business fully complies with UAE commercial laws.

Dubai e-trader license eligibility

The e-trader license is truly a game changer for online businesses. It is also a ray of hope for those aspiring to start their own small online businesses in Dubai, paving the way for their dreams. But who exactly can get one in Dubai, and what are the legal requirements? Let us find out! Here is the eligibility criteria for obtaining an e-trader license Dubai:

Age: The age of the applicant must be 21 years or older and must be living in Dubai.

Eligible candidates: All UAE citizens are eligible for the e-trader license without any specific restrictions. Nationals of GCC countries can also apply for the license, along with foreign expats from some specific countries who may be eligible too. However, both need to be residents of the UAE and must hold a UAE resident visa along with a valid Emirates ID.

Sole owners: This license is specially meant for sole proprietors and is not available for companies. Thus, e-trader license can be obtained by freelancers, small businesses with a single owner, and solo entrepreneurs. There must be a single name on the license.

Some other features of the e-trader license UAE to keep in mind:

  • The e-trader license is meant for businesses that do not have a physical office location. It only applies to home-based online businesses.
  • UAE locals and GCC expats can sell both goods and offer services through this license. However, foreign expats cannot sell physical goods but are allowed to offer services.
  • Usage of social media, websites, and other online channels under this license must comply with the rules and standards set by the DED. Advertising standards, content, and practices deemed illegal or inappropriate must be strictly avoided.
  • The e-trader license in Dubai requires annual renewal, and as a license holder, you must always stay vigilant and updated on new regulations and laws set by the DED.
  • The e-trader license does not require partnering with any local sponsor or agent. This license is designed to let you enjoy 100% ownership of your solo online endeavour.
  • All online selling through social media handles requires an e-trader license. This applies even to individuals like mothers or homemakers selling handmade products such as bakery items, jewellery, etc.

Please note that the legal requirements and conditions are subject to government changes. We recommend checking the official DED website for the latest information.

Benefits of e-trader license Dubai

There are many benefits you can enjoy by holding an e-trader license in Dubai, including:

  1. Simplified Setup: Compared to other types of trade licenses in UAE, the application process for an e-trader license is quite simple and straightforward.
  2. Brand protection: Getting the e-trader license in Dubai protects your trade name and intellectual property as your business gets officially licensed and registered with DED.
  3. Legal compliance: Running an online business in Dubai without a proper license may lead to legal troubles. Having an e-trader license ensures you start on the right foot.
  4. Builds Trust and Credibility: Consumers trust businesses that hold legal business licenses. Especially in online businesses, where fraud and scams are common, having a license enhances your business’s credibility in the eyes of potential customers.
  5. Flexibility: Marketing flexibility is a major advantage of obtaining an e-trader license. You can easily upload, showcase, and sell your products and services online through platforms like social media. It also makes it easier for your customers to find and reach out to you.
  6. Low Capital Requirements: The capital requirements for e-trading are significantly low. The license is cost-efficient compared to other types of trade licenses making it suitable for startups.
  7. No Physical Office Needed: Being a home-based business, you do not need to rent a physical office for an e-trader license, saving you considerable expenses.
  8. Multiple Business Activity Options: There are diverse business activities covered under online business operations that you can choose from.
  9. No Local Sponsor Needed: There is no need for a local sponsor or agent, allowing you to enjoy full ownership of your e-trader license.

E-trader license Dubai activities

DED e-trader license Dubai allows for a wide range of business operations to be pursued, some of them are:

Selling Products Online:

Products like clothing, jewellery, accessories, electronics, handmade items, custom gift items, beauty products, home decor, stationery, food items can be sold online through social media and personal websites.

Offering Services Online:

Services such as consulting, coaching, digital marketing and IT services, web development, etc., can be rendered online through social media and personal websites.

Important Note: The permissible activities under the e-trader license are subject to change and may differ for UAE nationals, GCC citizens and foreign expats. Also, certain activities such as trading of medical products, pharmaceuticals, and financial and fitness services are prohibited without additional approvals. It is advised to reach out to DED for latest information.

Documents required for e-trader license application

For your Dubai e-trader license application, you must keep the following documents ready:

  • UAE residence visa
  • Valid Emirates ID
  • Passport copy (if needed)
  • Passport sized photograph
  • Proof of address (Makani number)
  • Trade name registration approval
  • Dubai Chamber of Commerce membership

These are some of the e-trader license requirements in Dubai. However, there may be more documents that you may need to submit based on your specific case.

How can I get e-trader license in UAE

Now that we know the basic requirements of e-trade license Dubai, let us now look at the process of obtaining one. It takes about three to five days for your application to be reviewed and the license to be issued after your request for license, provided you follow the process diligently and meet all requirements.

Here are the steps you need to follow to get your DED trade license in Dubai:

1. Check the Eligibility:

The applicant must first make sure he is eligible to apply for the e-trader license in Dubai, like holding a residence visa, meeting age requirements, being a solo entrepreneur, etc.

2. Register a Business Name:

For the online business, a suitable and lawful name must be registered with the DED. The approval of the name needs to be submitted with the license application.

3. Apply for the License:

The next step would be to apply for the e-trader license DED. For an efficient process, this is usually done online through the DED official website. For that, you can follow these steps:

  • Visit the DED’s online portal to register.
  • Login using credentials. If you are new user, create an account using your Emirates ID number, email address, and mobile number.
  • After creating a new account, you will need to log in, after which you can proceed with the e-trader license Dubai application.

To begin the application procedure, you will need to provide some information:

  • Specify your business activity carefully that you wish to undertake with the license.
  • Fill in the personal details, approved trade name details and other asked information (such as social media account details)
  • Attach the documents as needed
  • Submit the application.

5. Pay the Fees:

To complete the application, you must pay the necessary fees. Payment can be made through the online method as approved on the website, and a receipt will be forwarded to the email address you provided.

6. License Approval:

After submitting the application for the license, the DED will review it. It may take some time, and you can also track your application status online. Once your application is approved, you will receive your DED e-trader license. This license is valid for one year and needs to be renewed annually.

Please Note: The DED e-trader license lets you sell online in the mainland jurisdiction of Dubai. For freezone business setup, it is better to get in touch with the relevant free zone authority to get any license.

DED e-trader license cost

Currently, e-trader license Dubai fees as per DED is around AED 1070* (license plus knowledge and innovation fees). Also, there is a sperate fees of AED 300* for membership registration with Dubai Chamber of Commerce. Please remember that the e-trader license Dubai price may vary and is subject to changes.

To know more about e-trader license Dubai cost, you can contact DED.

Start an online business in Dubai

Starting an online business in the thriving digital economy of Dubai is a very smart move. Given the habits and preferences of the city’s populace, selling products and services through an e-commerce business in Dubai can prove to be a great business opportunity. And an e-trade license Dubai becomes your key to becoming a part of such a thriving economy.

If you are feeling confused or overwhelmed by the thought of starting a business setup in Dubai, do not hesitate to reach out to us. We at Dubiz Business Setup can take care of every aspect of starting a business in Dubai. While we currently do not assist with obtaining an e-trader license, we are more than happy to support you with acquiring an e-commerce license, along with other services such as Emirates ID, business bank account opening, government approvals, and more. Let us help you establish your business successfully in Dubai.

📞 Call: +971 56 369 5485

💬 WhatsApp: +971563695485

📧 Email: info@dubiz.co

Frequently Asked Questions ?

1. Does DED e-trader license Dubai cover entire UAE?

The e-trader license Dubai allows you to do business in Dubai’s mainland jurisdiction. To sell products in the rest of the UAE, you would need to get separate approval and licensing from the respective DED authority of those Emirates.

2. Is e-trader license Dubai available for foreign expats?

Yes, DED has expanded the e-trader license Dubai for expats from certain nationalities. Being an expat, you would first need to obtain your UAE residence visa which can be done through employment, business ownership or investment. There may be certain restrictions though like foreign expats can only offer services online not physical products. It is important to check the latest eligibility with the DED.

3. Who is e-trader license suitable for?

People who may find the DED e-trader license beneficial include stay-at-home mothers or housewives operating businesses from home, freelancers, startup businesses that do not want an office right now, entrepreneurs who want to test a new idea, professionals who want to have side business, or those who want to sell online, etc.

4. Can I get a visa on an e-trader license in Dubai?

Generally, the e-trader license does not allow the license holder to issue visas. We still recommend consulting DED for latest information.

5. What is difference between e-commerce and e-trader?

The difference between the e-commerce license and e-trader license in Dubai lies in their scope. If you are someone who wishes to run a home-based, solely owned business through social media and a personal website without having a physical office, then the e-trader license would be the right choice. In case you wish to run a large-scale online business through multiple online channels, marketplaces and require office space and visas for employees, then go for the e-commerce license.

6. Can I use DED e-trader license to operate in Dubai freezones?

No, e-trader license which is issued by the Department of Economic Development (DED), allows the conduct of online business on Dubai mainland. It does not cover freezones. Freezones have their own rules and regulations. For operating in freezones, you would need to acquire license from the respective freezone authority.

7. Can you sell products outside Dubai with a DED e-trader license?

No, a DED e-trader license Dubai permits to do online business within mainland jurisdiction of Dubai.

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