E-Trader License in Dubai: A home-based entrepreneur or individual who sells products and services on social media platforms like Instagram is considered an E trader. E-commerce has seen tremendous growth in Dubai in recent years. By 2025 it is expected that this market will hit 8 billion dollars.
Individuals who promote their products and services through their social media accounts, websites, or other media will need an E-trader license in Dubai. Among other uses, this license could be used by stay-at-home moms in Dubai who sell handmade products on Instagram or photography services.
What is an E-trader License in Dubai?
Dubai recently introduced an e-trader license issued by the Department of Economic Development (DED) to allow Emiratis and citizens from GCC countries to conduct online business through social networks in Dubai. Through this license, individuals can sell products and services over social media.
Only ex-pats in Dubai with an Emirates ID are eligible for the E-trade license. Owners must be Emiratis, GCC citizens, or ex-pats aged 18 or over and residing in Dubai. However, an Emirati can get two visas for employees under the e-Trader license; ex-pats are not allowed permits, and the licensee is solely responsible in the event of legal disputes.
Advantages of Getting an E-trader License in Dubai
Online shopping will be more transparent, and customers will feel more confident. In addition to this, here are a few other benefits of having an eTrade license in Dubai.
- Name protection for trade names.
- You can take advantage of bank offers.
- Participate in conferences and exhibitions on behalf of the project owner
- Consumer stores where you can view products
- The Dubai Chamber offers import and export facilitation through membership in the Dubai Chamber.
- Training programs and workshops
- Employers of temporary workers
- Social media ads
What is the Purpose of an E-trader License?
The licenses is designed for individuals who run online businesses. Registered E-traders are more credible sellers who can gain the trust of buyers as well. This license is ideal for those keen on legally promoting and selling products and services from home, whether they are parents or social media users.
What are the conditions to become an e-trader?
UAE citizens and GCC nationals can obtain the license, as can ex-pats* with DED approval.
- Have a UAE ID and be located in Dubai.
- Must be at least 21 years old.
- Reserve a trading name
- It is required to pay license fees within 24 hours of issuance.
- It is necessary to renew licenses within one month of expiration. If not, the license is automatically canceled.
- DED registration is required.
Dubai Business Advisors can assist this step.
There is no requirement for the E-trader to open a shop or office. In some cases, UAE nationals can issue their employees two visas. The E-trader license, however, is not a guarantee of a permit for the license holder. This is subject to approval by the DED. Any dispute will be decided by the licensee alone.
Selling your products or services outside of Dubai requires the approval of the respective emirate’s Economic Department of Development.
Process of Registering License in Dubai
Dubai’s E-trader licensing process is straightforward. You can follow these steps to apply for a license:
- Visit the DED Trader website
- Open a Trader account
- Make payments and register
- When registering for the permit, you should provide information about your social media accounts
Within five to ten minutes, you will receive confirmation of the business license.
Documents Required for E-Trader License
- Online registration is available
- A valid Emirates ID is required
- You must reserve the trademark
- There is no need to sign an ejari (tenancy agreement). DED’s database will keep the home address confidential
E-trader license types:
- A license for commercial use
- A license as a professional
Ex-pats are not allowed to get commercial licenses, while local Emiratis can receive both.
Time Required to obtain E trader license
It takes 3-5 working days to obtain an E – Trader License.
Dubai E-Trader License Restrictions for Ex-pats
Before obtaining this license, ex-pats should be aware of some downsides. As they are
- Ex-pats are not provided with a residence permit
- Ex-pats cannot employ staff – they are effectively sole traders working alone.
- Does not permit an ex-pat to lease commercial premises, for example, offices, workshops, or commercial kitchens
- E-trader license does not permit ex-pats to sell goods, either wholesale or retail (although Emirati nationals and nationals of the Gulf Cooperation Council can sell goods with it)
- Activities are restricted by nationality – check in advance!
- Business ideas can’t be co-created by friends or family members.
Get Help From Business Expert in Dubai
Getting an E trader’s license in Dubai is not difficult, but it does take time and requires deep knowledge. We recommend you seek consultation from a business expert in Dubai, like Business in Dubai.