E-trader Licence for Online Businesses in Dubai
  • April 11, 2023

E-trader Licence for Online Businesses in Dubai

The emergence of e-commerce has fundamentally altered the commercial landscape worldwide. Globally, the number of freelancers has increased, particularly since the epidemic. From this point forward, aspiring business owners discovered that they could operate profitable enterprises without a physical office location. There has never been a simpler time to launch your own online business. Therefore, the Dubai Department of Economy and Tourism (DET) has established the e-Trader licence for online entrepreneurs in response to the above-mentioned rising demand.


Benefits of an e-Trader Licence

Your online business will be more credible and appealing with an e-trader licence. This licence helps individuals who want to legally sell or promote products and services through well-known social media platforms like Facebook and Instagram. The Department of Economic Development conveniently lists about 3,000 activities that can be used with an e-trader licence.  Other examples of tasks that an entrepreneur might carry out with this licence include providing online consulting services and offering freelance services.


Requirements to apply for an e-Trader Licence in Dubai

You must fulfil specific criteria established by the DET to apply for an e-Trader licence in Dubai. These prerequisites consist of the following:

· Age: To apply for an e-Trader licence, you must be at least 21 years old.

· UAE residency is required: possession of a current Emirates ID card.

· Business activity: The rules governing e-Trader licences should permit your company activity.


Without a physical store, e-commerce has given business owners a platform to sell their goods and services online. The government of Dubai introduced an e-Trader licence, which is gaining popularity among business owners. They can lawfully carry out their commercial operations online thanks to this licence. The advantages of an e-Trader licence are:


· Reasonable

The E-Trader licence is highly sought after when comparing the prices of various licences because it is an affordable licence given the benefits it offers the individual.  Entrepreneurs may easily plan their budgets because the renewal charge is the same.

· Flexibility

Entrepreneurs can operate their businesses from anywhere in the world if they have an internet connection. Because of their adaptability, they can reach a larger audience and serve customers that prefer to shop online. Entrepreneurs can also run their enterprises from the convenience of their homes, dramatically lowering overhead expenses.


· Legitimacy

An e-Trader licence provides entrepreneurs with legitimacy, which can increase customer trust and confidence. A valid licence assures customers that the business is legally registered and their transactions are secure.


· No local sponsor required

Unlike certain business licences, an e-Trader licence does not require a local sponsor. This requirement can be a significant hurdle for entrepreneurs who do not have a local sponsor or those who want to act on their own. With an e-Trader licence, entrepreneurs can operate independently, making it an attractive option for many.

· Access to government services

An e-Trader licence provides entrepreneurs access to government services like visas, bank accounts, and legal assistance. This access can save entrepreneurs significant time and money as they do not have to obtain these services independently.

· Easy renewal process

Renewing an e-Trader licence is a straightforward process, and entrepreneurs can renew their licence annually.  Failing to renew the licence on time may result in penalties, but the renewal process is generally hassle-free.

Steps to renew an e-Trader Licence

Before expiration, you must submit a renewal application to the DET to renew your e-Trader licence. If you don't renew by the deadline, you'll have to pay a fine of AED 1,070.


In conclusion, for business owners wishing to launch an online enterprise in Dubai, an e-Trader licence is a fantastic choice. An e-Trader licence can help you establish and expand your online business thanks to its reasonable cost, flexibility, and trustworthiness.

How can Ascent Partners help?

Ascent Partners is a boutique consultancy providing bespoke, end-to-end corporate services ranging from company formation to accounting, bookkeeping, and compliance services for entrepreneurs looking to set up their next venture in the UAE. We work alongside to strategise, startup, and scale businesses in the UAE and the broader region.


With a combined experience of 50+ years, our expert consultants provide reliable and unparalleled guidance throughout all strategic phases of a business' evolution.