Trade license

What Kinds of E-Trader License Options Are Available for Forming a Business?

e-trader license in dubai

Dubai is a land of opportunity for investors and entrepreneurs from all over the world. There are different types of business activity available in Dubai for you to start your company with. The Dubai government has modified its rules and regulations and introduced new ones to facilitate entrepreneurs. So, it is comparatively easy to set up a business in Dubai. You can even start an online business in Dubai by using the internet.

However, to start your business activity in Dubai, you will need to fulfill the requirements of the local government.

Dubai offers the best environment for any type of startup business to grow. The growth potential for any business is huge in Dubai. You can capitalize on the opportunity by starting a business in Dubai. However, you will need to acquire the relevant licenses and permits before starting your business in Dubai.

The type of licenses you will need to acquire before starting your business activity in Dubai will depend on factors like the type of business activity you will perform or the location of your business. Company Setup Consultants can help you start your business in Dubai by streamlining the process of starting a business for you.

Types of E-Trader License Options Available for Forming a Business in Dubai

E-trader license was introduced by the Dubai Department of Economic Development (DED) in order to regulate entrepreneurial business conducted online through the internet and social media platforms. If you are planning on starting an online business in Dubai, you will need to acquire an e-trader license to conduct your business legally.

There are two types of e trading license in Dubai. Commercial License and Professional License. Although an Emirati or the GCC personnel can apply for both the licenses, an expat can apply for the professional license only.

There is a variety of licensing options available from the Dubai Department of Economic Development (DED). Let’s take a look at some of the e-trader license options available for company formation in Dubai:

1. Industrial Licenses

If you are planning on engaging in manufacturing or industrial activities, you should acquire an industrial license. This type of business typically works with natural materials. This involves refining natural materials into finished products. Under this license, your company must have local sponsorship. The local sponsor must own 51% of the company, while you can own the rest 49%.

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2. Professional Licenses

If you are planning on conducting non-physical activities in Dubai, you should acquire a professional license. Professional license is issued to companies that provide non-physical services. This type of service includes auditing services, consultancy, attorney, and others. If you are planning on starting a company that provides these types of services, you can retain 100% of the ownership. However, under the professional license, you will still require a local sponsor.

3. Commercial Licenses

A company engaging in business activities like commercial trading activities and providing physical services will be required to acquire a commercial license in Dubai. This can include commercial activities like healthcare, general trading, specialized trading, real estate, contracting, transportation, and more. If your business involves any of these, you will also need to apply for a commercial license.

4. Occupational Licenses

An occupational license is provided to businesses that create crafts and arts commercially. An occupational license, also known as a craftmanship license, can be acquired by an individual from the Dubai Department of Economic Development (DED). These can include blacksmithing, carpentry, printing, and more. You will need expertise in relevant equipment and physical efforts to provide these services.

5. Agricultural Licenses

An agricultural license is given to businesses that work in the agricultural sector of a country. If you are planning on starting a business that involves growing crops, raising livestock, or conducting farm-related business, you should apply for an agricultural license.

6. Tourism Licenses

A company involved in tourist activities will need to acquire a tourism license to perform its business activities in Dubai. These can include hotels, resorts, restaurants, travel agencies, and more. There are three types of tourism licenses available based on the type of business activities you are planning on performing.

Who Can Apply for an E-Trader License in Dubai?

Any individual or business organization that conducts their business online by using the internet can apply for an e-trader license. An E-Trader license can be obtained by UAE citizens, GCC nationals, and ex-pats in Dubai. Businesses that are eligible for an e-trader license sell and endorse products online via online or social media platforms. All online commercial activities via a valid social media account will require an e-trader license.

E-trader license in Dubai is applicable for home-business endeavors for whom office space requirement is not mandatory as Ejari documentation is irrelevant here.

The Benefits of Setting Up a DED-Licensed Company

A DED license is mainly known as a mainland license. It is getting popular among foreign entrepreneurs who are starting their businesses in Dubai. Here are the benefits of setting up a DED-licensed company in Dubai:

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1. Easy Business Setup in Dubai

Dubai government has introduced a streamlined process for starting a company in Dubai. The registration and the legal process of starting a company in Dubai are comparatively hassle-free. It can still confuse you if this is your first time. Company Setup Consultants can help you navigate through the whole process and take care of it for you.

2. Multiple Licenses

You can offer several different services with your company by acquiring multiple licenses. As a result, you will not need to restrict your business activities if you can acquire multiple licenses as you expand your business.

3. Business Activity Flexibility

You can expand your business to activities that are not even listed with DED. DED will have new activities added to the coverage list if it is not previously registered. You will have no limitations on the business activities you can perform.

4. Expanded Flexibility

As a DED-licensed company, you will be able to trade with any mainland-based company. You will also be allowed to do business with companies outside the country. This gives you flexibility in the expansion of your business.

Department of Economic Development (DED)

The Department of Economic Development’s vision is to transform Dubai into one of the largest business hubs globally. This plan is comprised of six strategic pillars that include:

  1. Economic Growth
  2. Economic Competitiveness
  3. Business Community Happiness
  4. Economic Foresight and Planning
  5. Advance the DED
  6. Maintain Financial Stability

The Requirements for an E-Trader License

To secure an E-Trader license in Dubai, there are several requirements you must first meet. These include:

  • Must be a Dubai resident
  • You have a valid Emirates ID
  • You must be 21 years or older
  • E-Traders may not use commercial premises like shops, offices, or garages to conduct business
  • An E-trader license is only for small businesses. If you plan on expanding or growing your company in the future, you’ll need to seek a different license.

How can we help you?

If you want to start a company using the e-trader license in Dubai but you do not know where to get started, then you are in the right place. This is because Company Setup Consultants has helped numerous entrepreneurs from all over the world start various businesses in 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 +971-582-595-164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at

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