For many people, their first steps into business are small – perhaps by working in their own front room and selling exclusively through the internet. Today, there are many enterprises being started by people online, such as tutoring, selling items they’ve crafted, or to freelance writing – and a decent living can be made from them.

If you live in Dubai and want to start up such a business, you must gain an e-trader licence first. But what is it and how do you apply for one? Our guide will show you how, covering the following topics:

• What is a Dubai e-trader licence?
• What is required for an e-trader licence?
• Dubai e-trader licence for expats
• Benefits of an e-trader licence
• Who applies for the e-trader licence?
• How to apply for the Dubai e-trader licence
• Why work with Charles Ntumwa Services?

What is a Dubai e-trader licence?

All businesses in Dubai require a licence to trade, and e-traders are no different. The licence enables e-traders – who usually work at home – to run their business online in Dubai.

The e-trader licence has been a requirement since 2017 when it was introduced by the Department of Economic Development. It was brought in to regulate online businesses in Dubai, and to give confidence to customers that e-traders are legitimate and can be trusted.

It has particular benefits for sole traders that don’t require premises from which to run their operation. People who are resident in Dubai and the wider UAE and GCC citizens can apply for the licence.

What is required for an e-trader licence?

As with all licences in Dubai, to acquire an e-trader licence there are various conditions that must be satisfied. These include being at least 21 years of age, having registered online with the Department of Economic Development, and having an Emirates ID – this is to certify that they are a resident in Dubai or a GCC citizen. GCC citizens can also use a copy of their passport.

Dubai e-trader licence for expats

As only those who live in Dubai or are GCC citizens can hold an e-trader licence, expats must have gained their Dubai residence visa before making an application for it.

Applying for a residence visa is usually a process completed by an employer or owning a business. It can also be applied for by being sponsored by a parent or spouse.

However, as soon as a visa has been granted, you can apply for an e-trader licence.

Benefits of an e-trader licence

There are numerous benefits of holding an e-trader licence. Firstly, it means your trading name can be registered and therefore protected – in Dubai, two businesses are not allowed the same name, they must be unique.

The licence also means traders can upload, sample and promote what they are selling.

It also means that the business can trade online and doesn’t require premises – which is a relief for those setting up a business with limited capital. Some enterprises are suited to an online platform as they can be run from a home office.

Having the licence also means it is easier to register for and join in with training sessions and other activities run by the Department for Economic Development. These can be useful for networking with other businesspeople and gaining skills that could be important in the future.

For customers, it also makes things more convenient as it makes it easier to search for and find your business whether through social media or a search engine.

Having the licence also gives customers reassurance that, if they buy a product or service from you, they are buying from a legitimate business and not a fraudster who may be running a scam or selling fake goods. Building up trust with customers is vital for building ongoing trading relationships, and the licence is a good first step on that road.

Who applies for the e-trader licence

There are entrepreneurs in various sectors for whom the e-trader licence is particularly pertinent. For instance, those who work out of their own homes as virtual assistants or perhaps selling craftwork via their websites.

Similarly, freelancers in fields such as journalism and/or content creation, marketing and public relations or website design, can benefit from the e-trader licence as it enables them to use online marketplaces as well as social media to connect with people who may want to commission them for specific tasks or ongoing work.

As mentioned, startup businesses that are formed with little initial investment from the founder and are operating virtually – perhaps with a view to setting up physical premises at some point in the future, when a sales concept has been proven – can also benefit from the e-trader licence.

In a similar vein, entrepreneurs who sell more online than physically may prefer to take an e-trader licence – anyone from recruitment consultants to e-retailers.

It is important to note than an e-trader licence just covers the entrepreneur who makes the application and nobody else.

How to apply for an e-trader licence

There is a set process that people who want to gain a Dubai e-trader licence have to go through. The licence can be applied for at www.dedtrader.ae. New users of the site will have to undertake an initial registration process, which takes a few minutes. Those with existing accounts can simply log in. You can log in here with a UAE pass, which means presenting your fingerprint.

Following this, you need to input your Emirates ID number, along with an email address or mobile telephone number.

The next step is to pay the AED 1,070 fee for the e-trader licence, which must be settled within 24 hours of the Department of Economic Development sending the form to you. If the fee isn’t paid, approval is withdrawn. In addition to the main fee, AED 300 has to be paid to the Dubai Chamber of Commerce.

After the payments have been made, the applicant has to input data about the websites and social media apps that they plan to use to trade on.

If this is all accurate, a verification will be sent to you some minutes later.

When this is complete, and all supporting documentation has been submitted with it, the Department of Economic Development will check your application and verify it (or not). If it is successful, your e-trader licence will be sent to you in about three to five working days.  

Why work with Charles Ntumwa Services?

As this article has shown, applying for an e-trader licence has some complexities, which can trip up an entrepreneur who is not familiar with the regulations. Therefore, company formation specialists such as Charles Ntumwa Services can be crucial to entrepreneurs in helping them to apply for the licence successfully first time.

Charles Ntumwa Services’ team has been involved in setting up businesses for many years in the UAE and can negotiate the complexities of licence regulations with skill to allow an entrepreneur to focus on ensuring the business is ready to trade and make money from the off.

To find out more and to receive a personalised quote, please contact Charles Ntumwa Services today.

The post E-trader Licence for Expats 2024 Guide appeared first on WWF.

Sharjah, the third-largest Emirate in the UAE, offers many business opportunities for aspiring entrepreneurs. Securing a trade license is paramount if you’re contemplating establishing a venture in this dynamic region.

This article provides a comprehensive guide on the process, requirements, and types of trade licenses available in Sharjah.

This guide provides insights into the step-by-step procedure, ensuring a seamless and efficient application process. Equip yourself with this knowledge to navigate the business landscape of Sharjah with confidence.

What is a trade license?

A trade license is a legal document that authorises an individual or a company to engage in a specific business activity within the UAE. In the context of Sharjah, the Sharjah Economic Development Department (SEDD) is the primary authority responsible for issuing these trade licenses. Holding a trade license legitimises your business operations and ensures compliance with the Emirate’s regulations and standards.

Role of the Sharjah Economic Development Department (SEDD)

The SEDD plays a pivotal role in the business ecosystem of Sharjah. As the main regulatory body, it oversees the issuance, renewal, and management of trade licenses within the Emirate.

Ensuring that businesses align with the Emirate’s economic objectives and legal frameworks, the SEDD fosters a conducive environment for local and foreign entrepreneurs.

How to get a trade license in Sharjah – Step-by-step

Embarking on the journey to obtain a trade license in Sharjah requires meticulous attention to detail and adherence to the prescribed steps. Here’s a systematic guide to streamline your application process:

Step 1: Determine your business activities

Before anything else, it’s crucial to pinpoint the business activities you intend to undertake. Sharjah offers flexibility, allowing you to select up to 10 activities from its comprehensive trade license activities list.

Step 2: Select your business legal structure

Your business’s legal structure forms its backbone. Depending on your vision and objectives, choose from the prevalent structures in Sharjah, such as sole proprietorship, partnership, or LLC.

Step 3: Decide on your business name

A business name is more than just an identifier – it’s the first impression your brand gives. Ensure you opt for a unique name that has not been previously registered in the UAE and resonates with your target audience.

Step 4: Apply for initial approval

With your business activities, structure and company name established, seek initial approval from the Sharjah Economic Development Department. This preliminary step can be completed online or in person.

Step 5: Secure an office space

A tangible office space is non-negotiable. Ensure your chosen location receives the green light from the Sharjah Municipality, aligning with their stipulated guidelines.

Step 6: Submit your trade license application

After the initial approval, it’s time for the formal application stage. This phase involves submitting specific documents, including the initial approval certificate and your tenancy contract.

Step 7: Settle the license fee

Every business endeavour comes with specific financial obligations. To secure your trade license in Sharjah, you’ll need to pay the designated license fee, which varies based on factors like business activity and legal form.

Step 8: Obtain your trade license

Upon successful verification and approval of your application, you’ll be granted your Sharjah trade license.

Types of trade licenses in Sharjah

Sharjah’s diverse economic landscape caters to a wide array of business activities, offering multiple trade license categories to accommodate these varied ventures.

Understanding these categories is pivotal in ensuring your business aligns with the Emirate’s regulatory framework.

Commercial license

A commercial license is tailored for businesses primarily engaged in trading activities. This encompasses buying and selling goods, importing, and exporting. It’s the go-to license for merchants and traders eyeing Sharjah’s bustling market.

Industrial license

Businesses that revolve around manufacturing or industrial operations, such as producing, assembling, and packaging goods, require an industrial license. This license ensures that industrial entities adhere to Sharjah’s safety and environmental standards.

Professional license

If your business offers specialised professional services, the professional license is what you need. This category covers professions like consulting, legal advisory, accounting, and other expert services that rely on individual skills and qualifications.

Freelance permit

For self-reliant professionals working on an independent basis, the freelance permit is ideal. This license is tailored for photographers, writers, designers, and other freelancers who operate without a traditional corporate structure.

E-commerce license

In the digital age, online trading has surged in popularity. The e-commerce license facilitates businesses that operate on digital platforms, selling goods and services through e-commerce websites or apps.

Cost of getting a trade license in Sharjah

Securing a trade license in Sharjah costs between AED 5,000 and AED 30,000. It fluctuates based on various determinants such as the type of business activity, the chosen legal form, office rent, visa fees, and other associated expenses.

E-commerce license affordability

Sharjah’s e-commerce license is an attractive proposition for entrepreneurs eyeing the digital marketplace. This license type is one of the most affordable options, with starting costs pegged at around AED 6,000.

Additional expenses

Beyond the license fee, businesses should also account for other ancillary costs. These might include office rent, utility bills, visa processing fees for employees, and other operational expenses that arise during the business setup phase.

Conclusion

Starting a business in Sharjah presents a golden opportunity to tap into a thriving market and benefit from the Emirate’s robust economic infrastructure. While the process might seem intricate, with the right guidance, it becomes seamless.

If you’re looking to establish your venture in Sharjah, consider reaching out to Charles Ntumwa Services. Our team of experts is here to assist you every step of the way, ensuring a smooth business setup experience.

The post How to Get a Trade License in Sharjah appeared first on WWF.