E-Trader License in Dubai

Have you ever thought of doing business online from the comfort of your home?

E-trading is an effective technique employed by business individuals and entrepreneurs to carry out business activity online by using various online and social media platforms, websites and marketplaces.

Key features of an e-trader license in Dubai

• This license is suitable for entrepreneurs running small or home-based businesses.
• With the e-trader license, the UAE locals and GCC expats can both sell goods and render services while UAE expats are only allowed to provide services.
• E-trader license allows you to sell goods made by yourself, so you cannot sell items manufactured by a third party.
• With this license, you can sell goods and services via social media without the need for a physical store.
• The Department of Economic Development (DED) in Dubai issues and regulates e-trader licenses.
• Accessible to UAE and GCC nationals, as well as resident expatriates, the license provides an inclusive option for many residents to participate in Dubai's digital economy.
• It removes the need for an office or physical business space, significantly reducing operating expenses while offering flexibility in how and where the business operates.
• Lower capital requirements make this an attractive choice for startups to enter the market.
• There is no need for a local sponsor or agent. This means that the process of starting a business is simple, quick, and cost-effective.

Requirements for a Dubai e-trader license

• Applicants must hold a valid UAE residency visa and an Emirates ID. These requirements ensure that only UAE residents and GCC nationals are eligible to apply. For GCC nationals without an Emirates ID, a passport copy is an acceptable alternative.
• Only individuals, not companies, can obtain this license, making it ideal for freelancers, independent entrepreneurs, and home-based business owners. The license is structured for sole proprietorship, granting full ownership to the license holder.
• Applicants must be at least 21 years old and must complete the registration process on the Department of Economic Development’s (DED) official website.
• The use of social media or websites for business activity requires adherence to DED regulations, which include maintaining appropriate advertising standards and avoiding any content or practices that might be deemed illegal or inappropriate.
• The e-trader license needs to be renewed annually, and license holders are responsible for staying updated on any new regulations or business laws in Dubai implemented by the DED.

E-trader license Dubai for expats

Since an e-trader license can be obtained only by UAE residence visa holders or GCC citizens, being an expat you need to obtain your UAE residence visa first.

UAE residence visa can be done either through employment, business ownership or investments. Another way is being a dependent and having a visa under the sponsorship of a spouse or a parent.

If you have one of those, you become eligible for the e-trader license.

It is important to note that the list of business activities in Dubai allowed under the e-trader license differs for GCC citizens and expats. There are certain restrictions for expats:

• Foreigners can provide only services under the e-trader license. Selling products is not allowed under this type of license. To sell products online, expats need to apply for an e-commerce license.
• Foreigners with a DED trader license are not permitted to run a fitness business. Importantly, this also includes personal training, yoga classes, or anything else that is sports-related.

Business activities under an e-trader license

• Online product sales, including items like apparel, accessories, electronics, handmade goods, and various other tangible products.
• Service-oriented businesses, such as graphic design, content creation, web development, consultancy, and other professional services delivered remotely.
• Marketing and selling products or services through social media channels.
• Creation and sale of online courses or educational content.
• Virtual consulting and coaching services.
• Digital marketing services tailored to client needs, including social media management, content strategy, and online advertising.
• Sale of other digital products, including e-books, software, and multimedia, catering to customers seeking downloadable or digital items.

Benefits of e-trader professional license in Dubai

Below are the benefits you enjoy having an e-trader license in Dubai:

• You have your trade name registered and protected.
• The primary advantage of the e-trader license is that it promotes flexibility in marketing for the traders. So they can easily upload, sample and promote their products and their various services. They do it using their verified online profiles. All these they can access just at the comfort of their homes.
• On the other hand, it makes it convenient for the buyers and consumers. They simply have to look out for any product or service by logging into their social media platform or do the web search.
• Additionally, online transactions with those licensed entrepreneurs give people the assurance that they wouldn't end up with fake products or frauds.
• Also the e-trader license serves as a massive relief to the startup businesses. This is mainly for those who haven't invested much to set up a physical shop or office to showcase their businesses. This also applies to those who feel their businesses are better off on the Internet platforms rather than in physical locations.
• With the e-trader license, one's business name is considered legit and trustworthy. They can even attend training and activities hosted by DED. This also helps build trust between the business owners and both the existing and potential customers.

Limitations of an e-trader license

The scope of activities permitted under an e-trader license varies based on the license holder's residency status. Foreign residents in Dubai face more limitations than UAE or GCC nationals.

Additionally, expatriates with an e-trader license cannot operate fitness-related businesses. This restriction covers all types of sports activities, including personal training and yoga classes, in accordance with regulations from the UAE Sports Ministry.

On the other hand, UAE and GCC nationals have broader permissions under the e-trader license. They are allowed to sell physical products and even prepare and sell food from home, enjoying greater flexibility in business activities.

How to apply for e-trader license in Dubai

Below is a step-by-step guide on getting a DED e-trader license: 

1. Visit the DED Trader website and create an account.
2. Choose your preferred language (you may see only words like “dealers license or merchants license”), but don't worry, you're still in the right place.
3. Click “register” if you are a new user, or “login” if you already have an account. Alternatively, you can sign in using your UAE pass, which will require fingerprint verification.
4. Provide your Emirates ID number, email address or mobile number.
5. Make the required payment. Currently, an e-trader license cost is AED 1,070. Usually, it has to be paid within 24 hours of receiving the payment form or voucher from DED. Failure to do this would make the system automatically cancel your payment approval. Also, there is a Dubai Chamber of Commerce membership fee of AED 300 which is paid along with the main fee. 
6. Make sure you give accurate information about your social media accounts to be used for trading.
7. Wait a few minutes for verification.

So when you are done presenting all the necessary documents, the verification and checks are performed. You will receive your e-trade license within 3 to 5 working days.

Prepare these documents in advance:

• Passport
• Resident visa
• Emirates ID
• Photograph
• Proof of address

Who should apply for the Dubai e-trade license?

Basically, everyone is considered a beneficiary of this license privilege as long as your residence status is valid. However, below are the different categories of people who may find the e-trading more convenient:

• Stay-at-home mothers or housewives who have opted to stay at home and work remotely. This license becomes a massive privilege to showcase their skills, craftworks or services.
• Freelancers - they use this medium to connect to people who wish to hire them for a particular task.
• Startup businesses who are yet to generate enough funds to hire or build an office.
• Entrepreneurs who feel they generate more leads or sales by trading online.

It is important to note that more than one person cannot be registered under one license.

Do I need a DED e-trader license or a e-commerce license

You’d better register an e-commerce license, if:

• you sell products or services online via websites, social media, marketplace (verify with the marketplace portal that they accept this license);
• you sell goods from third party manufacturers;
• your business is quite big and involves purchase, management, storage and delivery of products;
• you need an office or other facility;
• you have employees and need visas for them;
• you want to establish a company in one of Dubai’s free zones.

You’d better register a e-tader license, if:

• you conduct a home-based business and don’t need to rent an office;
• you are the only one owner;
• you don’t purchase, store or deliver goods;
• you trade goods or services using social media;
• you are a startup and have limited capital;
• you seek a simple and quick way to start your own business.

Here there are some valuable business ideas on how to earn money online in the UAE in 2024.

Getting e-trader license in Dubai

If you are planning to start a company in Dubai but are overwhelmed by the variety of licenses and requirements and don’t understand which type of license is right for you, reach out to our business consultants at Emirabiz. We will take a close look at the specifics of your business, your circumstances, resources, and goals, and help you achieve the best result. We provide comprehensive support in company registration, obtaining visas, license purchase, accounting services, and tax consulting. In other words, we take care of all aspects related to starting and running a business in Dubai, allowing you to be confident that all regulations are met and focus your efforts on growth and planning.