Dubai: Are you a budding entrepreneur who wants to set up a home-based business in Dubai? Then it’s time to apply for your e-Trader licence.

What is an e-Trader licence?

Issued by Dubai’s Department of Economy and Tourism (DET), an e-Trader licence is a sole establishment licence for home-based businesses in the emirate – it is linked to an individual, rather than a company with multiple shareholders.

The licence allows individuals to conduct business online legally, by selling products or services through their website or social media channels. It’s a simple, low-cost option for small business owners and freelancers who want to run a business without renting a physical office space.

Musa Dayani, a Dubai-based public relations officer, explained: “It’s best for people who want to sell products or services at a small scale – these kinds of businesses would not have a need to involve Dubai Municipality, the Roads and Transport Authority (RTA) and others.”

What are the types of e-Trader licences?

There are two types of e-Trader licences that you can apply for, according to the Dubai Department of Economic Development (DED): commercial and professional.

The first involves the trading of physical goods, like perfumes and garments. The second has more to do with professional services, such as marketing services, proofreading services, photography lessons and so on.

What are the eligibility criteria when applying?

According to the DED, there are certain limitations in place, currently, for foreign expatriates, as they can apply for a professional e-Trader licence only. This means expatriates will not be able to engage in the commercial trading of physical goods, and but can offer professional services online, such as make-up artistry, photography, coaching, and so on.

Dayani clarified: “All UAE residents and citizens are able to apply for an e-Trader licence. The licence’s validity is for one year and can be renewed.”

Here are the eligibility criteria:

  • Emiratis and Gulf Cooperation Council (GCC) nationals can apply for both commercial and professional e-Trader licences.
  • Foreign expatriates can only apply for a professional e-Trader licence.
  • Applicants must be at least 21 years old and reside in Dubai.
  • Applicants must hold a valid Emirates ID.
  • Applicants must register a trade name before applying.

What can I sell with an e-Trader licence?

The e-Trader licence allows individuals to sell a variety of goods and services, according to the DET, including the following:

  • Marketing services
  • Web design services
  • Fashion design services
  • Garment trading
  • Calligraphy and painting
  • Perfumes and cosmetics trading
  • Content creation services
  • Project management services
  • Training services

Documents required

Before applying for an e-Trader licence, ensure you have the following documents at hand:

  • Emirates ID.
  • Valid Dubai residency, with Ejari contract or Makani number as evidence.
  • Passport copy.
  • Passport-sized photograph.
  • Registered trade name: This is a unique business name that reflects your activity, and follows the Dubai Department of Economic Development’s (DED) naming regulations. You can apply for it through the Invest in Dubai portal at the same time as applying for your e-Trader licence, as the trade name is issued instantly.

What is the cost of an e-Trader licence?

According to Invest in Dubai, the breakdown of the e-Trader licence fee is as follows:

Licence fees: Dh1,070 (including knowledge and innovation fee)

Dubai Chamber membership fees: Dh300

Applying for a trade name (if applicable): Dh620

How to apply for an e-Trader licence

Now that you have verified the eligibility criteria, and gathered your documents, you can apply for an e-Trader licence online, through the Invest in Dubai portal, or in-person at a DED service centre, such as DED Café. Follow the steps below.

Apply online via Invest in Dubai

  • Visit Invest in Dubai’s website, id.dubai.gov.ae. Sign in with your UAE PASS or with your registered username and password.
  • Create a DED Trader Account using your Emirates ID and mobile number.
  • Next, select your business activity from the drop-down menu that offers a list of approved activities, such as fitness coaching, digital marketing, fashion selling and so on.
  • Next, register your business’s trade name, if you haven’t done so already. The name must be unique, and adhere to DED’s naming regulations.
  • Enter your business details, including your residence address.
  • Submit the required documents.
  • Pay the fees.

You will receive your licence by email in under five minutes, according to Invest in Dubai. Once you receive your e-Trader licence, you are officially allowed to legally trade or provide services online.

Apply in person at DED Café or a DED service centre

  • If you prefer to apply in-person, head to a DED service centre. You can find a full list of locations here: investindubai.gov.ae/en/business-setup/business-setup-services/service-centres-in-dubai.
  • Visit a conveniently located service centre.
  • Meet with a representative and provide all your details, including your chosen trade name and residence address. The agent will assist you in filling out an application.
  • Provide your required documents.
  • Pay the fees.

Once processed, you can collect your licence from the centre, and receive a digital copy on your email.