For those who reside in Dubai and want to start a business the e-trader license in Dubai is ideal for them, in this article we will explain everything you need to know about the e-trader license UAE.
With the development of technology and the evolution of social media, the business world has changed the way it is run. Online sales platforms and websites have innovated the way you buy or sell a product or service. It is now easier to shop without leaving the comfort of your home, which means that consumers prefer to shop online instead of going to a physical store.
Because you don’t need a storefront or office to sell online, many self-employed merchants have taken advantage and are making use of social media to promote their services or sell their products. In UAE, the authorities took notice of the advance and increase of online sales and created the E-Trader License UAE to regulate illicit sales and provide reliability to consumers.
1. E-commerce in Dubai.
For a person to trade online in the UAE, the trader must have a license corresponding to the economic activity they wish to carry out. In order to access the e-trader license in Dubai and establish your business, you must first apply to the Department of Economic Development (DED) and the Digital Government and Telecommunications Regulatory Authority for approval to obtain the license and pay the e-trader license cost in Dubai.
The main advantage of online commerce is that stores are available 24/7, and shopping online makes it easier for people to find a good deal and save travel time. There are several methods to sell online, the most common are selling through a marketplace such as Amazon, through your own website (which avoids paying marketplace commissions), and making use of social networks.
It is because there are so many means that the market has increased so much and licenses are so sought after. In addition, most companies or independents use all media together to achieve better results.
Some licenses you should opt for if you want to have e-commerce:
- E-trader license: It is suitable for online business and is inexpensive.
- Commercial or service license: This license is not specifically for online commerce, but you can have your business and offer your products online.
- E-commerce license: Traders use it to sell through their own website.
- Portal license: It works as an intermediary between the seller and the buyer.
- UAE Freelancer License: For all freelancers who wish to showcase their skills online.
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2. The E-Trader License in Dubai
The Department of Economic Development (DED) launched the E-Trader License in 2017 for all those e-traders who decided to start a business and use social media as a medium, the E-Trader License is a license that allows UAE nationals who are residing in Dubai to run their business through diverse social media platforms and only through them.
The main reason why the e-trader license UAE was created is to prevent illicit sales, which have increased with the development of social media. In addition, it allows regulating the sales of products through websites and reinforces confidence for future buyers who want to experiment with online shopping.
The etrader license in Dubai has a special focus on self-employed people who run their business from home and thanks to the electronic age do it through social networks such as Facebook or Instagram.
Read this article and see Why Should Set Up Your Company in Dubai Mainland
3. Advantages of having an e-trader license UAE
Having an e-trader license UAE allows entrepreneurs and traders to legally promote their products and services, but beyond this brings other advantages such as:
- Being legitimate and authentic in e-commerce.
- It brings a sense of trust. In this way, customers feel secure when buying.
- It protects the commercial name and intellectual identity.
- The e-trader license UAE is cheaper in Dubai.
- It provides legal authority to trade through social networks.
- Allows creating a corporate bank account in Dubai.
- Gives the opportunity to participate in various events where they can showcase their products.
- By obtaining the e-trader license in Dubai they get training programs that the DED provides for electronic traders.
For whom is the E-trade license suitable?
For all those entrepreneurs and businessmen who work from home with their own company and do not need an office, the E-trade license in Dubai is ideal. Because this license allows them to promote and sell comfortably online making use of social networks or websites. The following are clear examples of people or traders who can apply for the E-trade license in Dubai:
- Freelancers.
- Those who wish to make good use of their idle time and have their own business.
- Mothers or stay-at-home family members.
- Beginners who want to get started with online sales.
- People with an entrepreneurial mindset.
- Professionals in certain areas who want to experiment working on their own.
- Anyone with the ability to promote products or services through social networks.
4. What you should know before obtaining the E-trader license in Dubai?
There are certain aspects that you should take into consideration before choosing to apply for the E-trader license in Dubai, let us explain briefly.
The E-trader license UAE is issued for the trader to use in a specific area of the Emirate. In order for the traders to use the E-trader license in Dubai outside of Dubai, they must first apply to the DED for approval and acquire another license that grants the permission to be an E-trader in that area. This means that if the entrepreneur with the license wants to use it outside Dubai, this will not be of any use to him.
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Reasons why should you get your E-trader license in Dubai?
If you are an entrepreneur, self-employed trader or you are thinking of creating your own business, the E-trader license UAE allows you to do it legally. This way you will be able to sell and promote products or services in a reliable way. It also gives you the opportunity to participate in exhibitions where you can show your product in the outmost interesting way.
Requirements to obtain the UAE E-trader license.
- The applicant must be related in Dubai.
- It is mandatory for the applicant to be a UAE or GCC citizen.
- The minimum age to apply for the E-trader license UAE is 21 years.
- The trader must be the only one attached to the company. No more than one may apply.
Documents required to obtain the E-trader license in UAE.
There are documents that you must have in order to apply for the E-trader license in Dubai, here we mention which ones:
- The first thing is to have in hand all the documents that can evidence your legitimacy. An example is the documents that certify your age or residency.
- Besides, you must register, with all the procedures of Law, the commercial name.
- To start with your economic activities, you must be part of the Chamber of Commerce of Dubai. And attach the document that proves it.
- Make the corresponding payment.
E-trader license UAE conditions.
There are some conditions you should know about the E-trader license in Dubai:
- For non-GCC expats who have a license, they cannot sell physical products through social media. However, they can offer their professional services, which can be maintenance, photography, and even event organizer.
- On the other hand, UAE national traders can market their goods and products, they can also offer services using social media platforms as a medium. As long as they have the E-trader license in Dubai.
- Also, the entrepreneur must not lease premises or office space for his business.
- Another important point is that products for food purposes are generally not included in the Etrader license UAE. However, it is necessary to have the proper consultancy to know the limitations because not all cases are the same.
- Finally, the trader may not hire personnel or involve family or friends in the business.
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The process to obtain the E-trader license UAE.
Although the process to obtain the Etrader license in Dubai is not too complex, with the right consultancy it is even simpler, straightforward, and error-free. That is why, at Connect Services Middle East, we offer you complete consultancy on how to manage your business and counseling your products with the E-trader license in Dubai.
However, here are the necessary steps to obtain the E-trader license UAE:
- First, you must create an account on the DED Trader website, as a trader.
- After that, you must register and make the necessary payments.
- Next, you must provide all the information requested by the system, which is related to social networks.
- Ultimately, you just have to wait for the confirmation which once received, you will have to print.
E-trader license cost in Dubai
For all the people who want to use their free time to start their own business and earn some profits, the Etrader license in Dubai is perfect for them. A good thing about the e-trader license cost in Dubai is that it is not too expensive and the payment is annual. Currently, the fee for the Etrader license in Dubai is AED 1,070.00. In addition to this, there is a mandatory chamber of commerce membership fee of AED 300.00. For a total of AED1.370,00.
If you want to learn more, we have this for you Learn about the types of trade licenses and the Dubai trade license cost
How to know if this license is not for you.
As mentioned above, in order to qualify for the Etrader license in Dubai you must be resident in Dubai. In addition, the license can only be used for trading in Dubai, in other words, it is restricted for other areas.
It is also important to note that the company must be small, so if you have plans to grow the company, this license is not for you. It is worth noting that the main purpose of the Etrader license in Dubai is to support those who wish to start a business from the comfort of their home. So, you should not own or lease premises in the name of the company holding the Etrader license in the UAE.
5. How can Connect Services Middle East help you get your license?
We are a company with a trained staff that will help you obtain your UAE e-trader license reliably and quickly. So that you don’t spend too much time and can start your business as soon as possible. Also with the right guidance, we will help you to leverage your skills by creating opportunities to grow your business and get satisfactory results.
Connect Services Middle East offers you consulting services to boost your business, learn about the necessary requirements to manage your company in the UAE, meet your visa requirements, and others that will help you improve your business in a simple, reliable, legitimate, and fast way.
Would you like to contact Connect Service Middle East to obtain more information about the etrader licenses in Dubai, UAE? If you have any questions, call us on +97143316688. You can email us at contact@c-uae.com, and you will talk to one of our representatives who will answer your questions. Contact us for enquiry regarding Company Formation in Dubai | PRO Services in Dubai | Business Setup in Dubai
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