During the first half of 2021 alone, 3,243 DED Trader licenses were issued. Whereas during H1 2020, only 1,989 licenses were issued. This is a staggering 63% increase from the previous year.
The popularity of the DED Trader license has gotten a big boost due to the increase in the E-commerce economy and online shops in the UAE. From its inception in 2017 till the end of June 2021, the Department of Economic Development in Dubai has issued 13,430 licenses.
The DED Trader license was launched by the Business Regulation and Licensing Sector of Dubai Economy. The main purpose of this license was to enable start-ups and even freelancers to perform business activities in the UAE.
At the start of the COVID-19 pandemic, online businesses in Dubai began to flourish. As a result, a lot of new online businesses started around this time. To facilitate and regulate these numerous new businesses starting all over the UAE, the government launched the E-commerce license.
Even before the pandemic, the government of the UAE wanted to promote the development of E-commerce in the country. That is why in 2017 they released the DED Trader license.
It is meant to drive and promote the digital development of the e-platforms that facilitate commercial activities. With the DED Trader license, businesses can use various social media platforms in Dubai to promote their businesses.
What is the DED Trader License in Dubai?
The DED E Trader license in Dubai lets you start a registered business using any online medium. That means that you do not need to have a physical base of operations when starting a business with the DED Trader license.
Previously, all businesses in Dubai were required to have a physical office space in other to be applicable for the trade licenses. Now, with the DED Trader license, businesses can be totally online.
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The DED Trader license allows you to perform all your business activities online. That means that you can list, advertise, and sell your products online through your website or social media page. The products and services you are trying to sell can be digital or physical.
If you are selling goods physically, then you need to hire a delivery company or deliver the goods yourself. You can accept online payments with the DED Trader license as well.
As we have mentioned before, with the DED Trader license there is no need for a physical office space. Instead, you can opt for a virtual office in Dubai. The best virtual offices in Dubai have prestigious business addresses. They are very cost-effective and come with flexible contracts.
Since they do not come with a physical space, they are the most affordable office spaces you can find in Dubai.
How to Obtain the DED Trader License?
The DED Trader license is easier to obtain compared to other licenses provided by the Department of Economic Development in Dubai. You can obtain the DED Trader license online through the invest.dubai.ae website.
Another easier and faster way is with the help of a business setup specialist or business consultants. The DED Trader license allows the holder to sponsor three visas for their employees, spouse, and children.
Here are the steps you need to follow to obtain the DED Trader license in Dubai:
- Select the legal structure of the business.
- Select the business activities you need to perform.
- Register a trading name for your business.
- Register for the DED Trade license through the online portal.
- Submit the required documents and pay the fees.
- Apply for the owner’s visa.
- Open a corporate bank account for your business.
Documents Required for DED Trader License in Dubai
The Department of Economic Development in Dubai requires some of the necessary documents for regulatory purposes. The licenses are provided for various reasons, one of which is to regulate the privately owned businesses in the UAE.
Some of the documents that are required will depend on the business activities you are looking to perform in the UAE. These documents are mandatory if you are applying for the DED Trader license in Dubai.
Here are the documents required for the DED Trader license in Dubai:
- Copy of the owner’s passport.
- Copy of the sponsor’s Emirate ID if you should have any.
- Local service agreement or civil works agreement.
- NOC (No Objection Certificate) from the relevant authority.
- The MOA (Memorandum of Association).
Business Activities Allowed by the DED Trader License
Since the DED Trader license was introduced to facilitate the growth of startup and freelancer culture in Dubai, it promotes the business activities related to these fields. It mainly focuses on the development of the E-commerce side of freelancing and startups.
That means that it allows all the business activities related to running a business through an online medium like a website or social media page.
The DED Trader license is most popular among businesses in sectors such as gents tailoring & design, ladies tailoring & design, readymade garments, handicraft workshops, food catering & delivery, exhibitions, commercial brokerage, and other products & services.
The information technology sector was the most popular among the businesses that opted for the DED Trade license since its inception.
Startups and the DED Trader License
Dubai Economy wants to support the startups popping up all over Dubai by signing partnerships with them and various government & private sectors. They want to do this through the DED Trader license so that the startups can find new to grow.
By opening these new channels of opportunities, Dubai Economy means to boost cooperation between the government and privately owned businesses.
To fulfill their goal of helping the startups in Dubai, Dubai Economy has partnered with noon.com by Mahali digital store. Noon.com is the UAE’s leading digital marketplace. It will help businesses and startups connect with local customers across the region through its website.
The website was designed to offer startups in Dubai the digital expertise and support they need to enable their business to prosper and grow their business online.
How can we help you with the DED Trader license?
If you are looking to get started in Dubai with the DED Trader license, then you are on the right track. Our Company Setup experts have years of experience obtaining the DED Trader license for various startups all across the UAE. Contact us today and hit the ground running.
To Speak with our Experienced Business Consultants for further information and assistance, call us at +971582595164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at info@companysetup.ae.
