• February 18, 2022

What is the e-Trader licence?

The e-Trader licence was launched by the BRL (Business Registration and Licensing) sector at the Department of Economy and Tourism (DET), Dubai, in March 2017.

In these four short years, till the end of 2021, Dubai e-Trader has witnessed an exponential rise with over 16,409 being issued. This growth showcases the efforts being made to consolidate Dubai’s position as a global platform for e-commerce.

In 2021, alone, the total number of e-Trader licences issued reached 6,217. This was a 6% increase compared to 2020 which only saw 5,848 licences issued. Dubai has been continuously working towards promoting e-commerce within the economy.

With a steady business and investment environment, government integration with the private companies, its strategic location, and unparalleled logistical advantages, Dubai has become a reliable platform for the largest e-commerce companies in the world.

According to the UAE eCommerce Landscape study, conducted jointly by DET (Department of Economy and Tourism), Dubai was found to lead the list of the fastest-growing and -developing e-commerce markets in the MENA region.

e-Trader licence and its uses

The e-Trader licence from Dubai Economy allows UAE as well as GCC nationals in Dubai to conduct business activities through social media networks. The e-Trader licence can be registered under a single owner itself.

Expatriates holding a UAE residence visa will also be able to apply for the e-Trader licence to conduct business activities within the country.

With the e-Trader licence, startups can operate from their place of residence or even online on social networking sites.

The e-Trader licence is issued electronically and would help professionals on the right path to enter the business world. Through this, the DET intends to regulate and enhance the ease of doing business online.

The BRL sector will also provide support to the licence holders through partnerships with government and private sectors, facilities to promote business growth and opening of new sales channels by enhancing cooperation with major outlets.

e-Trader licence: Category-wise distribution

According to the BRL sector’s report, out of the licences issued in 2021, 79% were licenced for professional activities while 21% were for commercial activities.

The business categories for which the licences were issued include Information Technology, ready-made garments, women’s and men’s design and tailoring, handicrafts, publishing and printing services, facility management and marketing services topped the list of licences issued in 2021.

e-Trader licence: What are its benefits?

Registering for an e-Trader licence is beneficial in more ways than one. Some of its popular benefits include:

·         Dubai Chamber membership for commercial activities

·         Bank facilities

·         Workspace facilities

·         Ability to display products at consumer points of sale

·         UAE nationals will be able to acquire a customs client code to promote import and export via dubaitrade.ae with an e-Trader licence.

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.

To know more, Get in touch with us at ask@ascentpartners or 04 422 7339 to start up and scale your business.