Benefits of E-trader License in Dubai

25Feb, 23

Benefits of E-trader License in Dubai

Dubai, a bustling metropolis in the heart of the United Arab Emirates, is not only a global hub for trade and tourism but also a place where entrepreneurs and small business owners can thrive. One of the key initiatives that have made this possible is the E-Trader License in Dubai. This revolutionary license has opened up new avenues for home-based businesses and budding entrepreneurs, making it easier than ever to conduct business in the city. In this blog, we will delve into the many advantages of the E-Trader License and how it can empower you to start and grow your business in Dubai.

What is the Dubai E-Trader License?

The E-trader license in Dubai, introduced in 2017 by the Department of Economic Development (DED), is aimed at home entrepreneurs conducting business through social media. Individuals and sole proprietorships will find it easier to sell their services and products on social media thanks to the E-Trader license. The E-Trader License is a government-issued permit that allows individuals to conduct business activities online in Dubai. Whether running a home-based business or an e-commerce venture, this license will streamline your operations while ensuring compliance with local regulations. It will also boost customers' trust when they shop online. The DED's announcement of the E-trade license came in the wake of efforts to combat counterfeit and fake products sold on social media platforms such as Instagram. The license aims to regulate the sale of goods and services in Dubai via social media.

Why do you require an E-Trader License in Dubai?

If you are an individual who promotes or sells products and services through social media accounts or a personal website, you will need an E-trader license in Dubai. This home business license, for example, would apply to staying mothers at home promoting handmade products or photography services on Instagram in Dubai.

  • Home entrepreneurs who do not have or need a physical office space are eligible to apply for an E-trade license in Dubai because it does not require registration with Ejari Dubai.

  • It's ideal for home-based businesses with a single owner that doesn't require a local partner or freelancers.

  • UAE and GCC nationals, as well as expats of certain other nationalities, can apply for the E-trader license in Dubai, provided they are based in Dubai and are over the age of 21.

Benefits of E-Trader License in Dubai

The following are some benefits of having an e-trader license:

Low Barrier to Entry

The E-Trader License significantly reduces the barriers to starting a business in Dubai. With minimal documentation requirements and lower costs than traditional licenses, it is an attractive option for startups and home-based businesses. This affordability opens up opportunities for individuals needing more resources for a larger-scale business.

Online Business Flexibility

The E-Trader License is tailor-made for online businesses. It allows entrepreneurs to operate from the comfort of their homes or any location with internet access. This level of flexibility is especially beneficial in today's digital age, where e-commerce and online services are thriving.

Local and Global Reach

Dubai's strategic location as a global trading hub means that businesses can access a diverse customer base, both locally and internationally. With an E-Trader License, you can tap into this global market, expanding your reach and growing your customer base.

Legal Compliance

Operating a business without the necessary permits can lead to legal issues. The E-Trader License ensures that your business complies with local laws and regulations. This not only protects you from legal complications but also builds trust with your customers.

Tax Benefits

Dubai offers a business-friendly tax environment, with no personal income tax and low corporate taxes. An E-Trader License allows you to take advantage of these tax benefits, potentially saving you a substantial amount of money in the long run.

Support from Dubai's Government

Dubai's government is committed to supporting small businesses and startups. With the E-Trader License, you can access government programs, training, and resources to help entrepreneurs succeed.

Access to Banking Services

Having an E-Trader License can make it easier to open a business bank account, which is crucial for managing your finances and building business credit.

Professional Image

An E-Trader License lends credibility to your business. It demonstrates that you are a legitimate entity in the eyes of customers, partners, and suppliers, enhancing your professional image.

Business Growth Potential

The E-Trader License is not limited to small businesses. As your business grows, you can transition to other types of licenses, such as a mainland or free zone license, without losing the progress you've made.

Conditions for an E-Trader License in Dubai for online business

It's important to note that there are restrictions on what you can sell on social media in Dubai if you have an E-trader license.

  • With the license, UAE and GCC national entrepreneurs can conduct commercial activity (selling physical products and goods) and professional activity (selling professional services) on their social media accounts.

  • Their nationality determines expats' eligibility for an E-trader license. Non-GCC expats can use social media to sell professional services but not physical products. This could include services such as maintenance, repair, event management, and photography.

  • While food products are typically not permitted under this license, it is best to double-check with DED for more information, as licenses are issued on a case-by-case basis.

How to apply in Dubai for an E-Trader license?

The following is a step-by-step guide to obtaining an E-trader license in Dubai.

  • Visit www.dedtrader.ae for more information.

  • Change the language to your preference (you may only see words like "dealers license or merchants license"), but don't worry, you're still in the right place.

  • Click "register" if you are a new user or "login" if you already have an account on the list of options. You can also use your UAE pass to log in. This means you'll need to show your fingerprint.

  • Please enter your Emirates ID number, email address, or mobile phone number.

  • Make the necessary payment. Currently, the cost of obtaining a Dubai E-trade Licence is AED 1,070. It is usually due within 24 hours of receiving the payment form or voucher from DED. If you do not do this, the system will automatically cancel your payment approval. There is also a Dubai Chamber of Commerce membership fee of AED 300, which must be paid in addition to the primary fee.

  • Ensure that you provide accurate information about your social media accounts that will be used for trading.

  • Within a few minutes, you will receive confirmation.

When you have finished presenting all required documents, the verification and checks are carried out. Your E-trade license will be delivered within 3 to 5 business days.

Conclusion

The E-Trader License in Dubai is a game-changer for entrepreneurs looking to establish or expand their businesses, especially in the digital realm. Its low barriers to entry, flexibility, legal compliance, tax benefits, and government support make it an appealing choice for those seeking to embrace the opportunities Dubai has to offer. So, if you're ready to embark on your entrepreneurial journey, consider obtaining an E-Trader License and unlock the limitless potential of Dubai's thriving business ecosystem. You can contact Dhanguard to avoid the hassle or to learn more about E-Trading licenses. We will assist you in obtaining the license and carrying out your business activities.