Have you ever considered starting a small business from home on social media? With an e-trader license, you can sell handmade accessories to web design services from the comfort of your own home using your social media accounts.
In this article, you will learn everything about what an e-trader license in Dubai is about. Let us observe:
- What is an e-trader license?
- Do you need an e-trader license in Dubai?
- What activities can you do in Dubai with an e-trader license?
- Who is eligible to apply for an e-trader license?
- How can you apply for a Dubai online business permit?
- Documents you need for obtaining an e-trader license
- Benefits of having an e-trader license in Dubai
- Do you need a license to sell on social media?
- How can Connect group help you?
1. What is an e-trader license?
The e-trader license in Dubai, introduced in 2017 by the Department of Economic Development (DED), is aimed at home entrepreneurs conducting business through social media. Individuals and sole proprietorships will find it easier to sell their services and products on social media thanks to the e-trader license.
In addition, it will improve customers’ trust when they shop online. The DED’s announcement of the e-trade license came in the wake of efforts to combat counterfeit and fake products sold on social media platforms such as Instagram. The license aims to regulate the sale of goods and services in Dubai via social media.
2. Do you need the e-trader license in Dubai?
If you are an individual who promotes or sells products and services via social media or a personal website; you will need an e-trader license in Dubai. For example, stay-at-home mothers promoting handmade products or photography services and selling on Instagram in Dubai would be eligible for this home business license.
- First, home entrepreneurs who do not have or need a physical office space are eligible to apply for an E-trade license in Dubai. This is because it does not require registration with Ejari Dubai.
- It is ideal for home-based businesses with a single owner that does not require a local partner or freelancers.
- If you are a GCC or UAE National or an ex-pat of certain other nationalities, you may apply for the E-trader license in Dubai. They have to provide they are based in Dubai and are over the age of 21.
3. What activities can you do in Dubai with an e-trader license?
Individuals with this license can legally promote and sell products and services through their social media accounts, such as:
- Instagram.
- Facebook.
- A personal website.
You can also promote their goods and services on online marketplaces. Individuals and sole proprietorships can legally participate in and reach out to customers at exhibitions and conferences with this home business license in Dubai.
Plus, it will safeguard your company’s trade name and any other intellectual property. You can also attend DED training and workshops if you have an E-trader license!
Note that an E-trader license is valid for specific people. These people are single-owners, home-based businesses or freelancers in Dubai. Individuals who hold this home business license in Dubai are not permitted to open a physical shop or issue visas.4. Who is eligible to apply for an e-trader license?
E-trader licenses are available to UAE citizens, GCC nationals, and ex-pats who live in Dubai and are over the age of 21. With an e-trader license in Dubai, someone can legally open a digital shop; in such a shop, they can market and sell products and services via their social media accounts such as Instagram, Facebook, and other similar platforms.
They can also promote their company on their website or by displaying their products and services on online marketplaces. Furthermore, they can carry out these tasks while sitting at home, eliminating the need for office space.
5. How can you apply for a Dubai online business permit?
All businesses in the UAE must have a valid business license to avoid legal trouble or compliance issues. The same is true for online trading firms. The application for the e-trader license begins with a simple registration process on the DED’s website.
You will need to enter your information as well as information about the social media accounts you want to use for your online business. Once that is completed, you can pay the required fee for your e-trade license in Dubai and you are finished. However, make sure to renew it annually before the expiration date.
You can always contact the business experts at Connect Group for more information on the e-trader license in Dubai; or any other questions about company incorporation in the UAE.
6. Documents you need for obtaining an e-trader license
The UAE government enforces a strict documentation policy to ensure that no fraudulent or unlicensed businesses exist. As a result, you must submit the following documents to the relevant authority to obtain your e-trader license in Dubai:
- An official document proving your identity for age verification.
- Proof of residency in the form of a valid Emirates ID.
- A certificate of approval for the reservation of a trade name.
- A copy of the invoice for the e-trader license payment.
The payment must be made within 24 hours of the payment voucher being issued. They issue the UAE e-trader license within three to five business days of completion.
7. Benefits of having an e-trader license in Dubai
These are some of the advantages of having an e-trader license in Dubai:
- You have registered and protected your business name.
- The primary benefit of the e-trader license is that it allows traders to be more flexible in their marketing. As a result, they can easily upload, sample, and promote their products and services. They accomplish this through the use of their verified online profiles. All of this is available to them from the comfort of their own homes.
- On the other hand, it makes things easier for buyers and consumers. They simply need to log in to their social media platform or conduct a web search to find any product or service.
- Furthermore, online transactions with those licensed entrepreneurs provide people with the assurance that they will not receive counterfeit goods or be duped.
- In addition, the e-trader license is a huge help to new businesses. This is primarily for those who have not invested significantly in establishing a physical shop or office to showcase their businesses.
- With an e-trader license, a company’s name is considered legitimate and trustworthy. They can even participate in DED-hosted training and activities. In addition, this helps to the development of trust between the business owners and their existing and prospective customers.
- The Dubai e-trading license is another tool for strengthening the economy and reaching out to people all over the world. This is because some people find it more convenient to shop online.
8. Do you need a license to sell on social media?
In Dubai, selling online is the same as selling in a physical store. Both are considered business activities in this country, so you must have a business trade license to engage in them. Selling on social media is a business activity that is classified as selling via an online medium.
Social media is a powerful tool for marketing and selling your products or services. Hiring multiple people allows you to run a full-fledged business online. As a result, the government has to regulate online businesses. The authorities in the UAE have launched an e-commerce license to achieve this goal.
In Dubai, an e-commerce license is also known as an online business license. The reason for this is that the authorities want to regulate while also supporting the country’s online businesses.
Online businesses that want to sell on various social media sites will need to apply for an e-commerce license in Dubai to be formally recognized as legitimate businesses.
8.1. How to obtain a Dubai e-commerce license?
8.1.1. Decide on a legal structure
When deciding on the legal structure of your company, you have several options. Because the legal form of your company determines the rules and regulations that your company will be subject to in the future.
They recommend that you carefully select the legal form of your business. These can be a Sole Proprietorship, General Partnership, Civil Company, or a Limited Liability Company.
8.1.2. Choose your commercial activities
After receiving your e-commerce license in Dubai, you must choose the specific business activities you wish to engage in. After completing the registration process, you can only engage in the business activities that you have pre-selected.
Thus, pick your activities carefully, and do not pick any that you will not be doing later. This is because you will need to obtain external approvals based on the business activities you intend to carry out.
8.1.3. Register your company’s trademark
Then, you will need to register a trading name for your company. Several online tools can help you determine whether or not the name you are looking for is already trademarked. The name may already be in use somewhere else in the world. However, as long as it is not in use in the UAE, you may use it.
When selecting a trading name, you must adhere to certain criteria. For example, racial or religious slurs are not permitted in the trade name.
8.1.4. Obtain the first approval
To begin the registration process, you must first deal with officials from Dubai’s Department of Economic Development. These are critical steps that, if taken incorrectly, can result in costly setbacks.
As a result, if you have little experience with business setup in the UAE, it is recommended that you seek the assistance of experts. To obtain the initial approval, you must complete an application that includes all of the basic information about you and your business.
8.1.5. Rent a virtual office space
Before the Department of Economic Development in Dubai issues any business trade licenses, businesses must provide a tenancy contract and the EJARI. Because your company will be mostly online, you can choose virtual office space in Dubai.
However, if you intend to conduct physical operations, you can choose from among the many affordable physical office options available in Dubai.
8.1.6. Obtain outside approval
Depending on the nature of your business and the type of office you choose, you will require a few external approvals from various government bodies and agencies. For example, if you have chosen a physical office space, you must have it approved by the Dubai Municipality’s Planning Section.
8.1.7. Submit the necessary documents and pay the fees
Last but not least, the Department of Economic Development in Dubai requires a few documents before issuing you an e-commerce license. They will give you the bank account information where you can pay the license fees.
If everything checks out, they will issue you an e-commerce license within a few days. You are free to carry out your chosen business activities once you have obtained the e-commerce license.
9. How can Connect group help you?
Nowadays, you can do business through the Internet. This and other new technologies are now part of our daily lives. However, for commercial purposes, you must get an e-trader license in Dubai. When you receive it, you will be able to enjoy the benefits of selling using social media apps while staying in compliance with the local laws.
At Connect Group, we have specialists that can assist you in your licensing process in the UAE. With us, you will not have to worry about carrying out those procedures. We are specialists in this and other services, hence we can be your guides through the entire process.
Would you like to contact us to obtain more information about licensing procedures in the UAE? If you have any questions, call us now on +971 43 316 688. You can also email us at contact@connectgroup.co. After that, we will gladly answer each one of your questions.
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