If you have an idea of opening a business from the comfort of your residence through the online mode then you should have a license to start your own business. You can trade with handmade articles, web-based services or retail marketing businesses or deal with any other products or services. If you are selling items or providing service on social media you should be having the license in Dubai. Dubai is approaching the future of e-commerce hubs fast and has started new initiatives for economic activity. Among various other initiatives E- trader license in Dubai has been started in 2017, it helps the home based business on social media. 

E-Trader License in Dubai

The E-trader license was initiated by the Dept of Economic Development(DED) and it is aimed at doing business on online platforms. The E-trader license will ease the individuals and small business owner firms to do their business online. The business license is issued to sell products and services on online platforms.

Customers can get a wide range of products and services when they are doing purchasing research. The license is aimed at regulating the sale of products and services on social media. The E-trading license issued by the government is to regulate the online business and reduce the fake products and business online. The license aims at regulating the purchase and sales of products conducted in the Dubai market. 

Is E-trader license Compulsory?

For all the businessmen who are into selling products and providing services online, they should have an e-trading license in Dubai. It is mandatory to have the business license to operate the business activities online in Dubai. This license is also for those doing business staying at home doing promotional activities for products and services through the online portals. Businesses are promoted through the online channels such as instagram, facebook, Youtube and other online services. 

This business design which does not require office location premises is suitable to get applied for an e-trade license in Dubai. It is not required to register for Ejari Dubai. It is best for home based businesses which do not require freelancers and local partners. UAE & GCC national expats of other citizens get eligible applying for e-trading licence in Dubai. The condition should be that an individual in Dubai should be more than 21 years old. 

Click here for How to get an e-commerce license in the UAE?

E- trader License 

A business owner can legally do business in the UAE. The activities such as business promotion, selling the products and services are permitted to perform in the country across the social media platforms. Even personal websites can be used to promote the business having the e-trader license. 

With this license the business can do not only promotions, they can also get into exhibitions, conferences and other activities. It will provide protection to your name and you will also have intellectual property rights. The DED will also train the employers and conduct workshop programs for the members who have trader licence. The staff can get advanced knowledge on business promotions and allied activities.        

E-trader license is only for the sole trading home business in Dubai. The freelancers and other individuals can also operate in this home based business. The owner of the business cannot operate in any location. 

Having this license you can trade goods & services in and around the emirates. If you intend to trade in other emirates then you should approach the other Department of Economic Development in that particular Emirate. 

Once you provide all the required information and documentation the authorities will review and approve the license. Once you get the license you can perform the trading activities in other emirates. 

What can you sell with an E-trader license?

Having an E-trader license does not mean you can perform any business activities on social media. There are certain guidelines and conditions that the Department of Economic Development provides in collaboration with UAE & GCC entrepreneurs. 

The business license owners should perform the commercial activities like selling the products and doing ‘professional services on social media. 

For expats, the guidelines for selling the products and services depends on the nationality. 

The authorities will provide the details to the business owners accordingly. Generally the ‘non GCC expats’ can sell ‘professional services’ through online platforms but they do not have the right to sell the physical products. These include the repairs and maintenance, event management, photography and others. You can get more information on nationalities, expats business guidelines and other details when you are registering for the license from the authorities. 

It is important to note that trading of eateries products is not permissible under this license. You can re-check the same with the Department of Economic Development at +971-4-445-5555 for detailed information. 

Click here for All about trade license in-the UAE

How to get an E-trader license?

The process of getting an e-trader license is easy and fast. You can submit your application for the e-trader license in Dubai on the ‘DED trader website’. You should firstly create an account with DED as a trading account. After the creation of your account, register your details and then do the payments. You should provide details and more info regarding your online platform through which you are intending to do the business. You will receive the confirmation on the license within 5 to 10 minutes. 

The fee for the license is AED 1070 and the license should get renewed each year. The fee amount can differ and you can check with the authorities. 

For more information on the E-trader license you can contact the DED. You can call at 04 445 5555 or email at info@dubaided.gov.ae

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Vinay Kumar Goguru is a finance professional with more than 8 years of diverse experience as a researcher, instructor and Industry work experience with both public and private entities. Prior to MyMoneySouq, he spent 6 years in Berkadia, It's a commercial mortgage banking company. He has a "Doctoral Degree in Commerce" and two master's degrees with a specialization in Finance, one as Master of Commerce and other as Master of Business Administration. He has written several articles on personal finance, published by different International journals. He loves traveling, reading and writing is his passion. He has a dream of writing a book on his favorite finance topics.

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