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To engage in any type of economic activity lawfully, one requires a license. However, there are other circumstances where a person works just from a tiny office or a setup at home and isn’t engaged in a full-scale business. However, in order to operate a business in Dubai, this arrangement also needs a license. The title of this license is “e-trader license.”
An e-trader license and an e-commerce license are frequently misunderstood. Let’s look more closely at the two licenses in question:
What is an E-commerce license?
People who operate in the e-commerce industry are given the e-commerce license. This entails establishing up an online store and shipping items to customers who place online orders. E-commerce is a field that is expanding and has recently gained popularity, especially in light of the pandemic.
What is an E trader license?
The e-trader business license, on the other hand, is comparable to the e-commerce business license. It is unique, though, in that it is accessible to people who operate a tiny home-based business. This company may offer expert services like plumbing, mechanic work, selling handcrafted items, etc.
Both social media and direct marketing are tools that sellers may use to promote and market their goods and services. The Department of Economic Development (DED) is the one who released it. To reduce and ultimately eliminate the risk of frauds and the entry of fake goods onto the market, the DED makes sure that only those with a license are permitted to serve.
Difference Between E-Trader And E-Commerce License
Several examples may be used to illustrate how the two licenses differ from one another. The Department of Economic Development (DED) issuing both permits, but the implications are different.
The first thing that stands out is the scale of the company. With an e-commerce license, one may operate a full-scale business with a website, many social media accounts, and worldwide clientele.
The e-trader license, on the other hand, is utilized by small firms. It enables business owners to operate from a setup at home while just investing on a small supply of products. However, since this is no longer a tiny firm, if it becomes successful, it will result in having an e-commerce business or others of its sort.
Activities Allowed With An E-Commerce License
An e-commerce license can provide access to a variety of activities, much like other e-commerce companies. One may invest in the sale of goods like:
- gemstones, jewelry, etc.
- Electronics, gadgets, etc.
- devices, electronics, etc.
- household, remodeling, and interior products, etc.
- Machine parts, spare parts, etc.
- Sports goods, etc.
- Transportation goods, etc.
Activities Allowed With An E-Trader License
Based on the idea that e-trader license is for businesses operating from homes, the following activities are allowed for owners to proceed with:
- Professional services, including small-scale IT consultation, plumbing, maintenance, etc.
- Selling handmade goods
- Social media account promotion
- Event management
- Photography services
What Restrictions Come With An E-Trader License?
The e-trader license has several restrictions, which are as follows, even if it is an excellent tool to lawfully build small size footings.
Only GCC citizens or UAE residents are permitted to sell items. This implies that a person utilizing an e-trader license cannot open a physical business or begin making sales.
- The license doesn’t provide an investor visa. The person acquiring the e-trader license must hold an Emirates ID or a Dubai resident visa.
- The license can benefit only a business run by 3 personnel.
- The e-trader license is only valid for the particular state in which it has been issued. If you wish to sell in other states, you’ll have to acquire it from those states and get approval from the DED.
- Ejari or Makani number is necessary.
Who Can Avail An E-Commerce License?
A resident of the Emirates or someone who has an Emirate ID may get an e-commerce license. However, in order to obtain the license, they must be at least 18 years old. Additionally, hiring while under license is prohibited.
The firm must be registered with the DED if one intends to hire people. As a result of business registration, the company would also require trademark registration.
Who Can Avail An E-Trader License?
Foreign citizens and residents of the UAE and GCC are both eligible to apply for the e-trader license. However, in terms of the kind of activity they are permitted to include in the license, foreign nationals are subject to the e-trader license’s restrictions.
What Help Can Archadius Global Provide?
For many years, Archadius Global has assisted investors in starting their online retailers and traders. with accordance with our clients’ needs and budget, we assist with business setup. Additionally, our team is well-versed in the licensing application and approval procedure, so we can assist you quickly and affordably obtain your license.