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Everything You Need to Know About an ETrader License in Dubai
Etrader license Dubai has been launched for those who want to run a business from home and promote their business on social media or online. Examples of the activities conducted under this license include selling handmade accessories or web design services or generally selling products or services on social media. Dubai has set its focus on becoming the leading e-commerce hub and has rolled out new schemes and initiatives to foster economic activity. Thus, obtaining an Etrader license is mandatory to promote a business on the internet legally.Â
In general, the Etrader license Dubai was introduced by the Department of Economic Development (DED) and is aimed at home entrepreneurs doing business over social media. The ETrader license will make it easier for individuals or single-owner businesses to sell their services and products on social media. It will also bolster customers’ confidence when they’re shopping online. The announcement of the E-trade license by DED followed in the wake of the efforts to crack down on counterfeit and fake products being sold on social media platforms like Instagram. The license aims to regulate the sale of products and services conducted through social media in Dubai.
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Who can Apply for the Etrader License Dubai?
Home entrepreneurs who do not have, are unwilling, or require a physical office space are eligible to apply for the Etrader License in Dubai. This is because the license does not require individuals to register with Ejari Dubai. It is an ideal license for single-owner home-based businesses that do not want to work with or require a local partner and freelancers. UAE and GCC Nationals and expats of certain other nationalities can apply for the Etrader license in Dubai, with the condition that the individual is based in Dubai and is over the age of 21 years.
For foreigners and expats looking to establish an e-commerce business in Dubai or Sharjah, the alternative to the Etrader license is obtaining an e-commerce license in one of the free zones. Free zones offer a compelling environment for international business owners, providing full foreign ownership, no requirement for a local partner, and various tax exemptions. An e-commerce license in a free zone enables expats to operate their online business, manage imports and exports, and offer services or products both regionally and globally. Each free zone has its own set of regulations and benefits, allowing entrepreneurs to choose a jurisdiction that best aligns with their business needs and objectives. This license is an ideal pathway for expats to tap into the thriving e-commerce sector in the UAE, leveraging the region’s strategic location and robust digital infrastructure.
What Business Activities can be Conducted under the License?
With this license, individuals can legally promote and sell products and services through their social media accounts, including Instagram, Facebook, and more, or on a personal website (within the emirate). They can also feature their products and services on online marketplaces such as Amazon, Noon, and more. For selling in other emirates, one must approach the respective Department of Economic Development for that emirate and ask for approval. Or simply obtain another Etrader license to sell in that emirate.
With this home business license in Dubai, individuals and single-owner businesses can reach out to customers at exhibitions and conferences. The DED holds training and workshops for Etrader license-owners, and it is strictly for a single-owner home-based business in Dubai or freelancers. Individuals with this home business license in Dubai cannot open a physical shop or issue visas.
Conditions for Conducting Businesses Under an Etrader LicenseÂ
It is important to note there are conditions on what individuals can sell on social media with an Etrader License Dubai. UAE and GCC National entrepreneurs holding the license can conduct commercial activity (sell physical products and goods) and professional activity (sell professional services) on their social media accounts. For all other expats, the conditions for what individuals can sell and promote on social media depend on nationality. On a general note, non-GCC expats can sell professional services through social media, but not physical products. This could include maintenance, repair, event management, and photography services. Individuals can find out more about which nationalities are eligible for the license or what they can sell through social media when they register for the license.
It should be noted that while food products are most often not allowed under the Etrader License, it would be best to double-check with DED for more information as the licenses are issued on a case-by-case basis.
How to Obtain the License?Â
The process to obtain the Etrader license through the government website or through Choose UAE’s company formation specialists. The applicant will be required to provide information about their social media accounts while registering for the license, and license can be issued within three to five business days. Here are the documents needed for applying for an Etrader License Dubai:
- A valid Emirates IDÂ
- Must be 21 years old and above
- Trade name registrationÂ
- Proof of residence (Makani number)
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