Known as a dream city, Dubai unlocks the door to a world of opportunities. Starting a business in this metropolis is a dream for many. With the launch of the E-Trader licence in Dubai, you can start an online business at low costs.
Whether you are a born artist or a freelancer, put your skills to use and take the flight of your dreams. Scroll down to learn everything about an E-Trader licence, from process to fees.
- Understanding E-Trader Licence in Dubai
- Eligibility Criteria and Restrictions for an E-Trader Licence
- How to Apply for an E-Trader Licence in Dubai
- Perks of an E-Trader Licence in Dubai
- FAQs
Understanding E-Trader Licence in Dubai
To facilitate home entrepreneurs, students and housewives in Dubai, the Department of Economic Development (DED) has launched a mid-way solution. Set up an online business and work from the comfort of your home while managing other household chores.
If you have marketing skills or know the intricacies of content management, the boom of social media is here to support you. With the help of an E-Trader licence, everyone who has a passion can begin their entrepreneurial journey.
Eligibility Criteria and Restrictions for an E-Trader Licence
If you want to have your own online business, here are the criteria to fulfil:
- Age must be 21 years or older.
- Must be either a UAE resident or a GCC citizen. This means any expat who wishes to obtain this licence must first get their residence visa.
- Must have a valid Emirates ID.
- Only a single person can operate the business registered under an E-Trader licence.
- No physical shop or commercial property can be owned or rented under an E-Trader licence as it is a work-from-home option.
- GCC nationals can own any online product or service-based business as long as it is legal.
- Expats of different types of residence in the UAE can only sell services. To sell products, obtain an E-commerce licence. Any fitness-related business is also not permitted.
- Most food products are not permitted to be sold under an E-Trader licence.
- Business must be operated within Dubai.
- Business cannot be within the free zone areas of Dubai. These are separate business areas where nationals and expats can operate their businesses. But for that, the legal rules and licence are separate.
How to Apply for an E-Trader Licence in Dubai
Applying for an E-Trader licence is both convenient and fast with DED’s service. Here is a step-by-step guide to help you:
Step 1: Check Eligibility
First things first! Check eligibility criteria, including age, sole owner requirements and types of businesses you can operate.
Step 2: Decide Your Business Name
A business name is the identity of your business, the one that makes it stand out among the crowd. Choose a name that reflects your offerings, appeals to customers as well and follows legal guidelines. The business name must not be a copied version of an existing brand and must comply with the rules set by DED Dubai.
Step 3: Gather Necessary Documents
Having a valid Emirates ID number is crucial to applying for this licence.
Step 4: Submit an Online Application
With the launch of online platforms, requesting legal certificates is both cost and time-friendly. No need to stand in queues and wait for your turn; ditch the traditional way and apply online.
Here is how to complete the process in less than 5 minutes:
- Visit the official website of the Department of Economic Development (DED) Dubai.
- Under the E-Services, select ‘Instant Licence’.
- You will be redirected to the ‘Invest in Dubai’s’ website.
- On that website, sign up using UAE Pass and then log in using the pass or registered email address and password.
- Complete the form by providing your Emirates ID number and email address or mobile number.
- Ensure to provide all the necessary information regarding the online channels that will be used for business. These include social media accounts and more.
Step 5: Complete Fee Payment
After the form is filled out, the next step is to clear the service fee for the licence. It is compulsory to make the payment within 24 hours of the invoice. Fees are as follows:
- AED 1,070: Licence fees and knowledge and innovation fees
- AED 300: Dubai Chamber of Commerce membership fee
Step 6: Wait for Review
DED Dubai will review the authenticity of the application and accounts. With that, it will conduct background checks to detect any fraudulent activity surrounding the business. Applicants can also follow up on the application using the same portal. After careful review, DED Dubai will approve the application.
Step 7: Receive E-Trader Licence
Once the application is approved, the applicant will receive the licence within 3 to 5 working days.
Note: Service is also available at the DED Dubai’s service centre available across the emirate. Moreover, the licence is valid for one year and must be renewed annually.
Perks of an E-Trader Licence in Dubai
E-Trader licence unlocks doors to opportunities where every day is a chance to build a reputation online. Most online businesses shift to onsite settings within a few years of a successful trade. With that, there is much that adds value to this licence. Here are the benefits of having this licence in Dubai:
1. Say Goodbye to Onsite Setups
Does the thought of renting a commercial location and the associated costs restrict you from starting a business? Start an online business and save property rental costs.
2. Easy and Cost-Friendly to Obtain
With low startup costs, an entrepreneur can invest more in their skills and products. As compared to a normal trade licence in Dubai, obtaining an E-Trader licence is budget-friendly and easy with the online application process.
3. Sell Online Conveniently
Do you have something unique to sell to the market? An art piece or clothing or a skill such as tutoring? Utilise online platforms such as social media, personal websites and marketplaces to showcase your business all over Dubai with just a few clicks.
4. Build a Loyal Customer Base
Everyone nowadays prefers online shopping as it is convenient and quick. But with that, people seek businesses that are reputable and genuine. DED’s licence makes a business appear authentic to customers.
5. Protection of Business Identity
What better than having your business protected at low costs? When building a brand online, people fear it getting copied. With DED’s licence, your business will receive trademark and intellectual property protection.
6. Attend Events and Training
Multiple organisations, including DED Dubai, conduct periodic training and host events for online business owners. This allows people to expand their reach, connect with fellow entrepreneurs and enhance their skills.
7. Run Your Business from Anywhere
Once you have registered your online business and have a valid licence, you can operate it from anywhere around the world. This gives the perk of travelling around the globe without fearing your business operations.
FAQs
No, as an expat, one cannot apply for a visa based on an E-Trader Licence. It is a legal requirement to obtain a residence visa first. However, as a national GCC citizen, there is a sole owner of the business, but the owner can hire and apply for visas for two employees.
The total fee for this licence in Dubai is AED 1,370.
Yes, with an E-Trader licence, opening a DIB E-Trader business account is easier than before.
Renewing a trade licence is necessary every year. The best part is it is quick, easy and hassle-free. Here is how to renew your licence in Dubai:
– Visit Invest in Dubai’s official website.
– Log in to the website.
– Under ‘My Transactions,’ click ‘Renew Licence.’
– Fill out all the information along with the ‘Licence number’.
– Apply.
– All set to receive your renewed trade licence.
With an E-Trader Licence, starting your own business is more hassle-free than before. Enjoy the perks of running a business from home and gain high returns. Save the costs and become an entrepreneur!
However, do you want to have a physical business in the Emirate? Learn more about economic zones in Dubai.
