The government of Dubai has set its focus on becoming a leading e-commerce hub and has rolled out a number of initiatives to improve economic activity. One of these initiatives is targeted at making it easier for entrepreneurs to swiftly acquire the e-trader licence, which allows them to sell products and services online or through social media.
Many people ask the questions “What licence do I need to sell online in the UAE?” and “Is it legal to sell through Instagram and other social media platforms if you don’t have the correct licence?”. Many people do not realise that it is illegal in the UAE to sell products and deliver services without the appropriate licence.
The e-Trader Licence is designed to bridge that gap to allow an affordable, quick, uncomplicated licence set up for UAE residents or citizens.
The e-Trader Licence in Dubai (also just called the ‘Trader Licence’) was originally launched in 2017 and is designed to help entrepreneurs sell services and products, both on social media and other online platforms.
The e-Trader Licence was introduced and is managed by the Dubai Department of Economic Development (DED). The new licence was launched by the DED following efforts to crackdown on counterfeit and fake products being sold on social media platforms like Instagram, Facebook and other online market places. The licence aims to regulate the sale of products and services conducted through social media in Dubai. The initiative continues to enhance transparency and customer confidence in online shopping. While online shopping becomes more secure with the e-Trader License, it also protects the trade name and enables the licence owner to reach out to customers across exhibitions and conferences.
For individuals living in Dubai, who already have Dubai residency or UAE Citizens who wish to start a small business from home or using social media and other online market places, this licence is a low cost and straightforward way to set up a licence to compliantly sell products and services in the UAE.
The e-Trader Licence allows UAE residents and UAE citizens to obtain a licence without the requirement of a Local Sponsor or National Service Agent and at a significantly reduced cost.
This is a new development and an ideal cost-effective solution for individual business owners looking to acquire a licence to sell professional services and products via social media.
The e-Trader Licence does not require an office space, meaning business owners can work from home to promote and sell products and services through their social media accounts or on a personal website. The licence owner can also reach out to customers across exhibitions and conferences and market places.
There are however, some limitations with regards to trading of physical products and goods. Commercial trading activities using the e-Trader Licence are only available to GCC nationals. Non GCC nationals can only sell professional services with the e-Trader Licence, for example marketing services, management services, consultancy services, web design and advertising services can all be undertaken.
Key benefits of the e-Trader Licence
Key limitations of the e-Trader Licence:
The licence is available for UAE & GCC nationals and foreign nationals. There are two main types of e-trader licence, both types have a wide variety of activities available:
UAE Nationals and GCC Nationals can obtain either a professional or commercial license but, foreign national expats can only obtain a professional license.
The e-Trader is still subject to VAT and if the annual turnover of the company reaches the minimum threshold, then the company must register for VAT and charge VAT as with any other company in the UAE.
The e-Trader owner must meet the following requirements to set up an e-trader Licence:
PRO Partner Group can assist you to ascertain the correct licence type and activities for your business and can assist you with all relevant steps to set up the e-Trader Licence. Please contact us below for more information and assistance.
The current application processing fee from Dubai DED is AED 1,200.
There will be additional fees for a commercial activity.
Licence fees can be paid up to 24 hours from the issuance of the payment voucher at Dubai DED.
The licence will need to be renewed annually – annual renewal fees will apply.
The Dubai e-Trader Licence normally takes around 5-10 working days to set up.