Today, social media has made our lives extremely easy and convenient. You can set up your business from home, sell your products and market your brand all with the help of social media. In recent years, we’ve become quite familiar with e-commerce businesses, it allows us to easily purchase anything from anywhere at the click of a button.
If you have a social media-based business in Dubai or you’re looking to start one soon, you’re required to have a license called the E-trader license.
What is an E-trader license?
Launched by the Department of Economic Development (DED) in 2017, the E-trader license is aimed at entrepreneurs doing business over social media. The E-Trader license makes it easier for you to sell your services and products and it regulates the sale of goods through social media in Dubai. This regulation helps to stop the sales of fake goods and commodities. It also gives you proper security for your business.
Initially, the E-trader license was only limited to Emiratis and GCC nationals staying in Dubai. With growing request from immigrants, the E-trader license option was extended to expats too. An expat, above 21 years of age, staying in Dubai can apply for the license.
There are two types of e trading license in Dubai. Commercial License and Professional License. Although an Emirati or GCC personnel can apply for both the licenses, an expat can apply for the professional license only. This limits the business functions of expats to professional services like make-up artists, modelling photography etc. Expats cannot trade, manufacture, or sell products.
Who can take the license?
• Individuals and home-based business owners who sell products online via websites or social media
• All online sales made via a social media account require an E-trader license. This applies to mothers and housewives who stay at home and sell hand-made items, fashion apparels, jewelry, and other goods and services.
• Professionals, who don’t want to spend too much money on setting up a firm but want to make use of their talent.
• People who want to make use of their free time and set up a side business
What does it do?
The E-trader license was introduced to regulate business activities over social media platforms. You must have an e-trader license to commence your business through social media.
• With this license, you can legally promote and sell products and services through your social media accounts including Instagram, Facebook, or on a personal website.
• You can also feature your products and services on online marketplaces such as Amazon, Noon etc.
• With this license, you can legally participate in and reach out to customers at exhibitions and conferences.
• It protects your trade name and any other intellectual property.
How to apply for the license?
You can obtain the license in few easy and simple steps. Go to the DED Trader website and follow these steps:
- Register by creating a username and password
- Enter your address details and social media account details
- Select the activity and trade name and then finally pay and receive the license electronically.
- After you’re done with the registration and payment, you’ll need to wait for the confirmation. Which happens within five to ten minutes.
A Dubai Chamber of Commerce membership is also compulsory for commencing commercial business activities. The license is issued for one year. It must be renewed annually, within one month of the due date.
You can get your membership here.
Cost of the license
The E-Trader license costs AED1,070. And the Dubai Chamber of Commerce Membership costs AED300.
Benefits of E-trader license
• Promotes trouble-free sales
• Certifies legitimacy and authenticity to engage in e-commerce activities
• Safeguards intellectual property and trade name
• Provides legal authority to sell products digitally
Additional Info
• This law serves to reduce the selling of counterfeit products and commodities on social media.
• The license provides a boost of trust for clients or purchasers who make online transactions through various social media sites.
• The license can only be registered in the name of a single person. The trader cannot operate a store or issues visas and the licensee will be held solely liable in the event of a legal problem.
