How to Get an E-Trade License in UAE?

Are you gearing up to start your eCommerce business in UAE to sell your products or services from your comfy bedroom? How can you get an e-trade license in UAE and start your online business to target one of the fastest-growing markets in the world? 

You’ve landed at the right place to get all your doubts cleared and all your questions answered.

UAE is home to one of the skyrocketing economies and highly sustainable systems around the globe. With every passing day, more and more overseas investors are opting for this land of opportunities to set up their digital businesses. Your online business that leverages social media platforms requires minimum capital investment to make your market debut and start growing instantly.

An E-trade license in UAE is your gateway to the Emirate’s growing market. In this blog post, we will discuss how can you acquire an e-trader license in UAE. Let’s start with the fundamentals.

What Is an E-trader License?

An e-trader license allows a person to legally market or sell a product through various online platforms such as websites and other social media platforms. Home-based business owners have an excellent opportunity to participate in events and exhibitions and showcase their products and commodities.

Department of Economic Development (DED) started offering e-trader licenses in UAE as a primary prerequisite to setting up your online business in UAE. It helped the UAE government to regulate online sales of goods via various social media platforms. This regulatory step eliminates the fraudulent sales of fake products and shady services over social media platforms. 

A requirement for an e-trader license in UAE also uplifted the trust of the customers in shopping for a variety of services or goods online. By acquiring an e-trader license in UAE, you can market your genuine and quality products online and attract your target audience for maximum business and escalating growth.

If you are gearing up to start selling your products or services online without setting up a dedicated office, an e-trader license in UAE is the key. We’ll tell you how to acquire one a bit later on in this guide. Make sure to stick around for that. 

Why Do You Need an E-trader License in Dubai?

It is comparatively easy to start selling your products online. At the same time, it is much more tricky for the state to ensure a quality check over such businesses for their legitimacy and authenticity. Therefore, an e-trading license in UAE can give you the confidence you want to start your small business from your home. Another prime reason to acquire a license is to enrich the trust of customers in online businesses without any physical or corporate presence.

To keep the factor of growing concerns of digital scams, UAE is among the pioneers of making an e-trade license mandatory for small businesses.

No doubt, a website or a social media platform is the perfect place to attract, engage, and convert your prospective buyers into paying customers. With the growing dependence of the world on social media, businesses of all scales have started using social media to target their potential audience.

Specifically, if you are an entrepreneur or want to strengthen your side hustle to create your empire, getting an e-trader license in UAE is your first and most vital step. Additionally, it helps you launch your legitimate online business, secure your trademark, and sell your products or services with confidence.

Benefits of an E-trader License

Below are some notable perks that are sure to leverage from your e-trade license in UAE:

• Get your business name and trademark registered, reserved, and secured.
• Leverage the liberty to market your products on social media platforms where you can find most of your potential buyers.
• Attract customers who are confident enough to make online payments with their debit or credit card without getting worried about any fraudulent activity.
• No need to worry about acquiring dedicated office space and inventory. Just start selling from your home using social media platforms.
• Give legitimacy and rapport to your business as a trusted and recognized digital entity.

Furthermore, 100% handmade goods and designer items are permitted to be sold in Dubai under an e-trader license. This allows you to sell your own customized products like handbags etc. 

Bear in mind that under Dubai law, commercial activity requires a citizen of the United Arab Emirates to own 51% of the company. As the sole owner of your online business, the e-trader license will only allow you to provide services. To hold an e-trade license in Dubai, you must be at least 21 years old. The Department of Economic Development lists approximately 3,000 activities that can be used with an e-trader license.

What Are the Eligibility Criteria for an E-trader License?

If you are a student, side hustler, or a housewife with parallel responsibilities and want to grow your online business, an e-trader license in UAE is your key. For example, you can get an e-trader license in Dubai if you are a housewife and sell homemade goods while staying at your cozy apartment in Jumairah.

In a nutshell, startup enthusiasts or freelancers who want to start their small business without any dedicated office are eligible to get an e-trader license in UAE.

UAE nationals, those belonging to GCC countries, and overseas individuals with specific citizenship are encouraged to opt for the E-Trader license in Dubai. The mandatory condition is that you must be based in UAE and at least 21 years old to be eligible for an e-trade license in UAE.

How to Apply for an E-trader License?

The process is fairly simple. All you need to do is follow these steps to get your e-trade license in Dubai: 

Step 1 – Go to the DED Trader website.

Step 2 – Choose your preferred language.

Step 3 – From the five buttons at the bottom, hit the “Register” button (1st from the left). Or click the “Login” button if you have already created your account.

Step 4 – In the new tab, click on the “Start My Business” button.

Step 5 – In the new window, choose “I Need To Open New Business In Dubai”. Then, click “Start”.

Step 6 – In the new window, click on the “CREATE ACCOUNT” option at the bottom. (You can directly log in with your UAE PASS by fingerprint scanner of your mobile).

Step 7 – Enter Your First Name, Middle Name, & Last Name. Then, Click “Next”.

Step 8 – Enter your active mobile number with the correct country code. Then, click “Next”.

Step 9 – Enter the OTP you received on the mobile number you entered. Then, click “Next”.

Step 10 – Enter your valid email address. Then, click “Next”.

Step 11 – Again, enter the OTP you received on the email address you entered. Then, click “Next”. (If you fail to get an OTP, check your Spam Folder).

Step 12 – Create a strong password with at least 8 characters in total and one special character, one upper-case letter, one lower-case letter, and one digit > Click “Next” > Click the “Go To Login” button.

Step 13 – Login to your account with the correct email address and password.

Step 14 – Verify your account by clicking on the “Verify Your Profile” option. Enter your valid Emirates ID or Passport Details.

Emirates ID Account Verification

Step 15 – Follow the following hierarchy of steps that the application portal will lead you through.

• Reserve your Trade Name
• Select your primary and secondary Business Activities
• Enter or skip your initial partner details if necessary
• Select the number and nationalities of your partners if you have any, if not skip this step
• Select the legal type that well suits your business
• Choose your License Type
  • Commercial or Professional for UAE or GCC citizens
  • Professional for Overseas Investors
• Enter all the relevant license details
• Enter the details of your partners that you listed in the 3rd step
• Get your final License

Make sure the information you provide is correct and matches that of your social media accounts. Once you will complete the documents submission process on your DED Trader portal. You can expect to get your e-trader license in Dubai within 3-5 business days. 

Documents Required for an E-Trading License in Dubai

Similar to the other trade licenses in UAE, you need to fulfill some mandatory document requirements for an e-trader license in Dubai, such as:

• Copy of paid license fee voucher
• Registered Tradename with approval
• Documents such as a passport (for GCC or overseas citizens)
• Emirates ID (for UAE residents)
• Documents must be showing that the minimum age criterion of  21 years or above is met.

How Much Does This Trade License Cost? 

The E Trader license fee in Dubai is AED 1000 which requires annual renewal with additional and compulsory charges of AED 300 for Chamber of Commerce sponsorship. The total cost makes up to AED 1300.

Conclusion

With the growing economy and high-potential market, UAE is undoubtedly a haven for businesses of all scales. For any entrepreneurs of age above 21 finding ways to set up their small business in UAE, an e-trader license in UAE can help them start their dream business. You just need to create your account, provide the required information and documents, and get your e-trader license in UAE within a week. By following the simple hierarchy of steps mentioned, you can easily get your e-trader license in Dubai and start selling our products online. Start now and feel free to connect with Airzone for any professional guidance related to setting up your business in UAE. We’ll help you get in touch with our trusted business setup partners who can guide you through your entire journey. 

We hope this guide on how to acquire an e-trader license in UAE helped you immensely. If you like to learn how to establish a business in Dubai from scratch, we highly recommend checking out our business setup in Dubai and UAE guide. And if you wanna learn about Free Zones, we have separate Free Zone business setup guides that you can also check out. 

FAQs About E-Trader License

What Are the Limitations of the E-trade License in Dubai?

If you get an e-trade license in Dubai, you can:

• Only sell your products or services in Dubai’s geographical jurisdiction.
• E-trader license in UAE does not offer an investor.
• You are not allowed to open any inventory or brick-and-mortar store with an e-trader license in UAE
• Proof of Residence in UAE (in the state from where you are going to operate your business) or a valid visa for GCC/foreign investors is mandatory.

Can You Run a Business Without an E-trade License?

Businesses of all scales require a valid license in UAE to sell their products and services. Similarly, if you want to sell your products online via social media platforms or websites, it is mandatory to acquire an e-trader license in UAE.