Everything you need to know (2023)

UAE News Today : OnlineLiveNews24.com 30 October 2023

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Dubai, recognized as a global commercial hub, is strategically located between continents such as Europe, Asia and Africa. As the world increasingly moves towards digital platforms, Dubai has embraced this change by introducing the E-Trader license.

This particular license is a boon for individuals and small business owners who aspire to venture into the online market from their homes. It is designed to cater to today’s individual entrepreneur who wants to tap into Dubai’s vast tech-savvy audience.

The real advantage comes from Dubai’s unique position as a bustling commercial hub, along with a population that is very accustomed to digital shopping. Furthermore, the government’s encouragement for digital businesses ensures that obtaining and operating under the E-Trader license is simple and beneficial.

In essence, for anyone interested in diving into Dubai’s thriving online trading scene, the E-Trader license serves as the perfect entry point, offering confidence and extensive trading opportunities in a secure environment. Going deeper into the details, we will discover all the essential things you need to know about obtaining this license.

DED e-merchant license Dubai

Introduced in 2017 by the Department of Economic Development (DED)The DED Trader license allows Dubai-based startups to trade online and through social media platforms.

This license is designed to guide traders in the right direction as they navigate the business landscape. By offering the DED Trader license, the Dubai Economy department aims to streamline and simplify electronic trading processes.

The DED Trader license can be obtained electronically from anywhere by accessing the website dedtrader.ae.with associated costs of AED 1,070 (covering license, knowledge and innovation fees) plus an additional AED 300 for Dubai Chamber membership fees.

The objective of e-commerce license in Dubai

Social media platforms have become essential for marketing and business operations, allowing entrepreneurs to effectively communicate their offerings without incurring high setup and marketing costs.

The e-commerce license in the UAE was established to regulate commercial activities on these platforms, making it mandatory for companies operating on social media. The Department of Economic Development (DED) oversees the issuance of this license, commonly known as the DED Trader License either Trader’s license.

Originally, the e-commerce license was exclusive to Emirati and GCC citizens residing in Dubai. However, recognizing the growing interest from the expatriate community, the license was extended to expatriates aged 21 years and over residing in Dubai. Despite this inclusion, there have been some confusions and limitations, especially for expats.

There are two main categories of eCommerce licenses: Commercial and Professional. While Emirati and GCC nationals can opt for both, expats are restricted to the Professional License, which limits them to offering services such as makeup artistry and photography, without the ability to trade or manufacture products.

Eligibility Criteria for E-Commerce License in Dubai

Individuals and home-based businesses that promote and sell products through online platforms, including websites and social media, are eligible for the e-merchant license.

An e-merchant license is required for all online sales made through legitimate social media accounts. This includes housewives and people who sell handicrafts, clothing, jewelry and other products and services through online platforms.
For home-based operations that do not require a physical office space, the e-merchant license in Dubai is suitable as Ejari documentation is not required.
Freelancers who offer a variety of online services can also benefit from the E-trader license. Sole proprietorships that operate from home and do not require a local partner are prime candidates.
Businesses that sell goods or raw materials through e-commerce platforms should also consider obtaining an e-commerce license.
The license is primarily intended for citizens of the United Arab Emirates or the GCC. However, in addition to them, certain foreign expatriates can also apply.
To be eligible for this license, applicants must reside in Dubai and meet the age threshold of at least 21 years.

Essential Documents for E-Commerce License in Dubai

To obtain an e-commerce license in Dubai, certain documents verifying address, age and residency details must be submitted to FROM D. This license is designed specifically for businesses that operate in residential spaces. If you are contemplating setting up a company in Dubai, please note that the process, eligibility and type of license may differ.

For e-commerce license in Dubai, the following documents and conditions apply:

Applicants must reside in Dubai and have a valid Emirates ID.
Applicants must be at least 21 years old.
The business name must be registered and approved by authorities, and this approval must be included in the application.
Proof of residency, such as Makani number, is required, but Ejari documentation is not necessary.
Normally, UAE e-commerce license can be obtained within 3 to 5 business days. Once proof of payment is issued, payment must be made within 24 hours.
Membership in the Dubai Chamber of Commerce It is mandatory for those engaged in commercial activities.
The license is valid for one year and must be renewed annually, ideally within one month of expiration.

Steps to get e-merchant license in Dubai

Acquire the DED Trader License It is an agile electronic procedure that is accessible from anywhere. Here is a detailed breakdown of the steps required:

Start by browsing to the official website, dedtrader.ae.
Set up an account by selecting a username and password. This action starts the application process and allows later access if necessary.
Enter accurate address details, which are essential for issuing licenses and future correspondence.
Link associated social media accounts if you plan to conduct business on platforms like Instagram, Facebook, or Twitter.
Choose the appropriate activity or activities that best describe the intended business operations to ensure alignment with the correct regulatory guidelines.
Decide and register a suitable business name that accurately represents the business.
After verifying all the details, proceed with the payment. Once the transaction is successfully completed, the DED Trader License It is issued electronically, so it is available for download and printing.

Advantages of obtaining an e-commerce license in Dubai

Obtaining an e-commerce license has numerous advantages for individuals and sole proprietorships wishing to operate in Dubai:

The license authorizes individuals to legally promote and sell products and services directly through social media accounts such as Instagram, Facebook, and personal websites.
Licensees can also showcase their products and services on various online marketplaces, expanding their reach.
The license serves to safeguard the trade name and any other intellectual property associated with the business.
Dubai Economy (DED) conducts training sessions and workshops exclusively for E-Trader license holders, providing valuable information and learning opportunities to strengthen your trading skills.
Having the license adds a layer of trust for customers transacting online through social media channels as it reflects the legitimacy of the business.

The E-Trader license in Dubai represents a forward-thinking initiative that aligns with the emirate’s vision of fostering digital entrepreneurship and ensuring a reliable online marketplace.

By offering legal recognition, intellectual property protection and valuable training opportunities, this license ensures that businesses operating online meet high standards and contribute positively to the region’s e-commerce ecosystem.