Planning to start an online business in the United Arab Emirates? You can choose from either an e-Trader License or an e-Commerce License. Each license allows for different types of business activities and offers distinct benefits. Understanding the differences between an e-Trader License and an e-Commerce License will help you decide which is best for your online business

E-Trading Business in Dubai
The UAE attracts investors and entrepreneurs due to its well-defined laws for various business activities. You can legally sell products online via platforms like Facebook, Instagram, Twitter, and Snapchat with an e-trader license, issued by the Department of Economic Development (DED).
No sponsor or national service agent is needed to run your e-trading business. Day-to-day activities include selling products or services over social media. However, non-GCC expats are only allowed to offer professional services in their social media businesses.
E-Trader License in Dubai
The e-trader license in Dubai is designed for small, home-based online businesses, initially targeted at small entrepreneurs and stay-at-home moms selling crafts online. This license also provides credibility to online businesses, helping them build customer trust.
Allowed Business Activities:
– Online services
– IT consultation
– Social media marketing and promotion
– Selling homemade products online
– Online event management
A physical office or space is not required with an e-trader business license.
Requirements to Obtain an E-Trader Business License:
– Valid EID
– Applicant must be based in UAE and at least 21 years old
– Present Eijari and Makani number
Application Process:
- Reserve a trading name for your business.
- Pay the fee within 24 hours of license issuance.
- Ensure annual renewal to avoid auto-cancellation.
- Complete the registration process with the Department of Economic Development.
E-Commerce Business in Dubai
Online shopping has become integral to daily life, offering affordability, convenience, and a wide range of choices. An e-commerce business involves selling products or services to the public and requires an e-commerce business license. Social media channels and other online selling platforms can be utilized.
E-Commerce License in Dubai
Designed for larger businesses, the e-commerce license covers everything from storage and transportation of products to online transactions and advertisements.
Allowed Business Activities:
– Start an e-commerce business
– Store physical goods
– Transport goods
– Sell products online
– Advertise products online
– Sell digital goods
– Spare parts, machine parts, etc.
– Deliver products to customers
– Accept online payments
The e-commerce license offers broader scope than the e-trader license but requires more starting capital and resources
Requirements to Obtain an E-Commerce Business License:
– Formation of a sole proprietorship or LLC under the Company Commercial Law 2015
– VAT registration with the Federal Tax Authority
– A registered office for documentation and legal billing
Application Process:
- Legal trading name for your business.
- Registration with UAE customs and ports authorities for import and export.
- Initial approval certificate valid for six months.
- Open a corporate bank account suited to your business needs.
Difference Between E-Trader License and E-Commerce License
The main difference is that the e-trader license is intended for small businesses, while the e-commerce license caters to larger businesses. Other distinctions include:
Size of Business:
– E-Trader License: Small, home-based businesses.
– E-Commerce License: Larger businesses with more extensive operations.
Business Activities:
– E-Trader License: Online services, IT consultation, social media marketing, selling homemade products.
– E-Commerce License: Storing and transporting goods, online and offline sales, advertising, selling digital goods.
License Registration Process:
– E-Trader License: Simpler, quicker registration.
– E-Commerce License: More comprehensive registration involving VAT and customs registration.
Cost of Obtaining the License:
– E-Trader License: Lower cost, suitable for small-scale operations.
– E-Commerce License: Higher cost, requires significant starting capital
Get Expert Help with Unicorn Global Solutions
Choosing the right license is crucial for your business success. Unicorn Global Solutions, one of the leading business setup consultants in Dubai, can help you decide which license suits your online business. We provide comprehensive support to ensure a smooth business setup process, allowing you to focus on growing your business with peace of mind. Text us on WhatsApp or call us today.