Historians have often recounted the last decade as an era that witnessed massive growth in the industrial sector. Many nations, including third-world countries rife with poverty, have taken many a great leap in the development of technology and business. Dubai remains no stranger to the massive growth in economic development; on the contrary, it has witnessed one of the biggest booms in the industry, and continues to skyrocket, as far as economic development is concerned.
A prominent driving factor that led to a surge in the economic growth is the advancement in the technology. The government of Dubai has rolled out a litany of initiatives that have contributed significantly in the development of small-scale businesses. One of the objectives of the Dubai government was the upliftment of budding entrepreneurs and solopreneurs. The initiative aims at providing a common platform for all businesspersons to trade online, specifically on social media platforms and e-commerce. Many businesspersons have for a long time asked questions such as “Can I sell on Instagram?” or “License to sell online?”
The answer is yes.
Many people are unaware of the prerequisites they must possess in order to trade online in the UAE. But thanks to the government, all a trader has to do is obtain an E-Trader license and they are good to go.
E-Trader License — what is it?
Also commonly known as ‘Trade License’, the trade permit was launched in early 2017 by the Dubai Department of Economic Development (DED) with a motive of helping entrepreneurs sell products and services on online platforms. The objective of launching the program was to curb the circulation and sale of fake products that were being sold on social media platforms such as Instagram, Facebook, etc. With an objective of regulating goods sold on social media platform, the permit continues to provide transparency between different parties. The permit has significantly benefited businesspersons of different statures as it is easy to procure, but nonetheless, business tyros often can face the question of which freezone area to choose when getting started.
One of the main advantages of an E-Trader license is that it comes at a low cost and is quite a cinch to set it up. So, anyone in the UAE looking to market their products online can leverage their brand and also gain the trust factor from their customers when their business is accredited by the government.
Requirements to obtain an E-Trader License
One other benefit that UAE residents enjoy is that the licensee doesn’t require a local sponsor or a national service agent to apply for the license. Also, the license is available to UAE & GCC nationals and foreign nationals only. The following criteria also will need to be fulfilled:
- Must reserve a trade name
- Must be of age 21 or above
- Must be able to complete the registration with DED
- Must be able to pay the fees within a time frame of 24 hours from issuance
- Must hold a valid Emirates ID and must be a resident of UAE.
One doesn’t need to be in the possession of an office space to acquire the license, which is why it is a cost-effective solution to entrepreneurs and small-scale industries. The licensee also has the benefit of reaching out to potential clients across conferences, exhibitions and market places. However, an E-Trading license does not come without any disadvantages; but let’s talk about the benefits first.
- One needs neither a National Service Agent nor a local sponsor for the acquisition of the permit.
- Possession of an office space isn’t mandatory.
- One can acquire a maximum of 3 employment visas if they will.
- Biggest advantage is that the licensee can be the sole owner of the company and/or own 100% of the shares.
- The license permits a plethora of activities, however, commercial trading activities, like selling physical goods is permitted only to GCC nationalists.
- One can hold a maximum of 3 employment visas.
- The license cannot be used in the establishment of a brick-and-mortar store.
- The owner shall be able to produce a Makani and an Ejari in order to prove that they reside in the United Arab Emirates.
- UAE Resident Visa, Passport and Emirates ID.
- Dubai-based Ejari
Role of Crosslink International Group
Crosslink International Group will assist you in assessing your business and advising you on all matters regarding E-Trade License. The group also specializes in helping people set up their companies after the procurement of the license — that includes establishing a base and restructuring your company. If you need assistance with setting up a new company, look no further than Crosslink International Group as it offers an E-Trader License for prices as low as AED 1070/-. Connect to an agent or call +9714321631 now to get your free consultation. Stay up-to-date with our offers by connecting with us on Instagram, Facebook, and Twitter.