Introduction about an e trader license in Dubai

Starting a business from home in Dubai through social media marketing channels? Well, in that case you need to acquire an e trader license in Dubai. This license is different from other types of trade license. You might have a lot of questions regarding this license such as: what is an e trader license, how you can get it, what are its benefits and who can get e trader license. Prospr understands all your queries and thereby designed a comprehensive guide that helps you understand everything about e trader license in Dubai.

So, let’s get started and get answers to all your questions.

What is an e trader license in Dubai?

The Department of Economic Development (DED) introduced an e trader license in 2017. This license serves as a trade permit for Dubai-based startups that can operate their business activities online and through social media platforms.

These days, home-based businesses can unlock countless business opportunities online and through social platforms. Dubai offers everyone a chance to make the most of this opportunity.

Every business that acquires this license is considered legit in the eyes of online consumers.

Online scams are everywhere, so bringing an e trader license in this picture is to give digital consumers a sense of safety that they are buying from a legit online business. So, basically this license serves as a confidence booster for consumers and buyers who are engaged in online business activities.

This license allows you to sell and buy services and products online, but only in Dubai. In case you plan to continue doing business in other emirates, you need to get separate approval for this purpose.

Learn about How to get trade license without office?

Who does need e-trader license in Dubai?

E trader license isn’t for everyone. There is a need to understand who is eligible to acquire this license as per the DED. You can apply for e trader license in Dubai when:

• You run a home-based business that endorses or sell products online and through social media platforms such as Facebook.
• You are making online sales of handmade items, jewelry, apparels, and other goods through valid social accounts online.
• You are a freelancer who is offering different kinds of online services.
• You are running an ecommerce business from home.

Eligibility criteria:

• When you run a home-based business, you don’t need to have a UAE national as your partner to acquire an e-trade license in Dubai.
• There is no need to have a physical office or workspace for license approval. (no need for Ejari documents). However, you must have your resident address and number while filling an application for an e trader license in Dubai.
• You can apply for an e trader license when you are a foreign expat of certain nationalities, a UAE national or a GCC national.
• The applicant must be a resident of Dubai and must be of 21 years old.

Learn everything about how to get a Ras Al Khaimah trade license

Benefits of e-Trade License

Here are some benefits of an e trader license in Dubai for expats.

• It allows you to do business digitally from your residence. This license helps you set up a digital store from home. However, this license is issued in the name of a single person, and you can’t issue a visa through this license.
• The basic purpose of issuing e trader licenses is to make the digital transaction safe and secure. It discourages the sale and purchase of counterfeit and fake products and services on social media.
• Once you get this e trader license online you can sell items or services on social media sites. The license will be held responsible only in the event of some legal issues. It’s vital to do your business through secure internet channels and social media sites to prevent legal issues or liabilities.

How to apply for an e trader license in Dubai?

Here are some steps you need to follow to complete e-trade license application:

• Visit the DED trader website.
• Register yourself. You need to provide your details alongside details of your social media accounts.
• As far as e-trade license Dubai cost is concerned, you need to pay the e-trader license fee of AED 1070. You need to pay this fee within 24 hours of your application. You need to renew this license annually. There is a grade period of two months for license renewal and if you don’t renew the fee during that time then you will have to pay a fine of 200 AED per month.

That’s it.

Important note: Once your application is submitted, it will be reviewed by the DED authorities and usually you will get your license within 3 to 5 business days upon approval.

Also check How to check Dubai trade license verification online?

Types of e-trader license in Dubai

There are two kinds of e-trader license.

1. Commercial license: If you want to do commercial business in Dubai online then you can acquire this license. This license is available for only Emirati and GCC nationals. Expats can’t apply for a commercial e-trader license. Expatriates aren’t allowed to trade, manufacture, or sell products online.
2. Professional license: If you are a foreigner who wants to offer his professional services in Dubai online, you can opt for an e-trader license. This allows you to render your professional services such as photography, makeup-artist, etc digitally.

Documents required for an e-trading license in Dubai.

With the means of an e-trader license, you can open a shop from home in Dubai. However, if you are planning to start a business in Dubai then requirements and trade license will be different. Here are some documents you need to furnish during application process:

• Valid emirates ID
• Trade name approval document
• Proof of residence
• Dubai Chamber of Commerce Membership (for commercial license)
• Copies of UAE passports and national ID cards

Also read about how to get a trade license in Sharjah? 

Who can make the most of an e trader license?

Here are some people who can take advantage of e-trade license Dubai opportunities.

1. An entrepreneur who wants to check the potential of his business online before starting a company in Dubai.
2. Newbie experimenting with different startup business ideas.
3. Anyone who needs a side hustle to put his free time to the best use.
4. Professionals who don’t want to set up a business in Dubai or go through the complex process of setting up a company. They can simply acquire the license and start offering their services.
5. Housewives and mothers who want to set up a business from home.

Wrap up

If you want to run your online business smoothly in Dubai, you need to acquire an e-trader license Dubai.it eliminates the need to have a physical office location as you are running business operations from your residence via social media platforms.

Do you want to understand whether an e-trader license is a right choice for you to explore online business opportunities or not? If yes, then feel free to connect with business consultants of Prospr. We offer support and guidance regarding this matter and about setting up a company in Dubai and other emirates. Book a consultation and get answers to all the questions you have.