In recent years, Dubai has become a top choice for digital entrepreneurs, influencers, and small business owners. The rise of social media selling and home-based businesses has made it easier than ever to start a business from home.
To support this growing trend, the Department of Economic Development (DED) introduced the e‑Trader license in Dubai, making it legal for UAE and GCC nationals to run online businesses without a physical office.
What Is the E‑Trader License in Dubai and Who Is It For?
The Dubai e‑Trader license is a sole establishment license offered by the DED that allows individuals to carry out business activities online. It is specifically designed for home-based businesses and is perfect for those who want to sell goods or services via social media platforms, websites, or mobile apps without the need for a physical shop or commercial office space.
This license was created to support small-scale entrepreneurs and freelancers while ensuring their business activities are properly regulated. It aligns with the UAE’s wider eCommerce strategy under the Federal Decree – Law No. 14 of 2023, which governs the sale of goods, services, and data using digital platforms.
This law treats online trade with the same legal standing as traditional commercial practices and outlines various legal, technical, and cybersecurity standards for digital traders.
Who Is Eligible to Apply for the Dubai E‑Trader License in 2025
In 2025, the e‑Trader license in Dubai is available to:
- UAE nationals residing in Dubai
- GCC nationals residing in Dubai
Applicants must be 21 years or older and have a valid Emirates ID. The business must be based in Dubai and operated solely by the license holder. This license does not support employee visa sponsorship and cannot be used to open a retail shop.
Currently, expatriates from non-GCC countries are not eligible to apply for the e‑Trader license. However, they may consider alternative business licenses, such as instant licenses or setting up in a free zone like Dubai CommerCity or EZDubai, both of which cater to online businesses with 100% foreign ownership and additional incentives.
What Can You Sell with a Dubai E‑Trader License?
The e‑Trader license allows license holders to sell a wide range of goods and services, including fashion products, handmade crafts, digital services, educational content, and home-cooked food.
However, all products and services must be legally approved for trade in the UAE. If your business deals with products that require additional permissions, such as health or beauty products, you must obtain special approvals from the relevant regulatory authority before selling.
Digital traders are required to:
- Maintain secure browsing and digital payment environments
- Follow cybersecurity standards
- Comply with marketing regulations and data protection rules
- Avoid false advertising or misleading promotions
- Issue clear digital invoices for all transactions
These conditions are aligned with the UAE’s modern eCommerce law, which ensures consumer protection and regulates online trading.
How to Apply for an E‑Trader License in Dubai
If you meet the eligibility criteria and are ready to launch your online venture, here’s how you can apply for an e‑Trader license in Dubai. There are two main methods: online through the Invest in Dubai portal or offline via a DED-approved service center.
1. Apply Online for E‑Trader License via Invest in Dubai
The easiest and fastest way to apply is through the official Invest in Dubai portal. This process can be completed in under 10 minutes.
Step-by-step process:
1. Visit the website: Go to www.investindubai.gov.ae
2. Create a DED Trader Account using your Emirates ID and phone number
3. Select your business activity from the list of approved activities (e.g., fashion selling, digital marketing, fitness coaching)
4. Choose and register a trade name for your business. This name must be unique and approved by the DED
5. Enter your business details, including your location’s Makani number
6. Submit the required documents, such as Emirates ID and proof of residence
7. Pay the fees: AED 1070 (license fees + knowledge and innovation fees) plus AED 300 (Dubai Chamber membership)
8. Receive your license digitally by email. The license is usually issued within minutes
Once you receive your license, your business is officially registered, and you can begin operating online.
2. Apply for E‑Trader License at a DED Service Center (Offline)
If you prefer in-person assistance, you can visit one of Dubai’s DED-authorized service centers.
Here’s how the offline process works:
1. Visit a DED or Tasheel service center with your Emirates ID
2. Discuss your desired business activity with a representative to ensure it’s eligible under the e-Trader license
3. Choose and submit a trade name for approval
4. Fill out the application form with the help of the staff at the center
5. Provide your location details, including the Makani number
6. Pay the license fee and chamber membership at the center
7. Collect your license, either as a printed copy or via email
The offline method is ideal if you need help choosing the right activity or navigating the process, but the online option remains faster and more efficient.
How Much Does the E‑Trader License Cost in Dubai (2025)
The total cost for the e‑Trader license remains affordable for new entrepreneurs. As of 2025:
- The license fee is AED 1070
- Dubai Chamber membership adds AED 300
- Total cost: AED 1370 per year
This cost may vary slightly based on activity type, so for accurate pricing, applicants can use the business setup recommendation tool on the Invest in Dubai platform.
How Long Is the License Valid and How Do You Renew It?
The e‑Trader license is valid for one year and must be renewed annually. The renewal process is simple and can be done online through the DED Trader account. The renewal fees are similar to the initial application. Renewals must be completed before the expiration date to avoid penalties.
E-Trader License Legal Responsibilities and Compliance
As a licensed digital trader in Dubai, you are expected to comply with the UAE’s Federal Decree – Law No. 14 of 2023 on Modern Technology-based Trade. This includes:
- Selling only products and services permitted by UAE law
- Avoiding deceptive marketing practices
- Following data protection and cybersecurity guidelines
- Using secure digital payment platforms
- Issuing accurate digital invoices
- Not engaging in activities requiring additional permits unless such permits are secured
The DED and other competent authorities monitor compliance, and violations can lead to penalties or license cancellation.
What Are the Limitations of the E‑Trader License and When Should You Upgrade?
The e-Trader license offers a legal and affordable option for many types of online entrepreneurs. However, it has certain limitations. Since it is issued under a sole proprietorship structure, the license holder cannot sponsor employees, open a physical store, or add partners to the business.
If your business grows beyond the limits of the e-Trader license, you may need to upgrade to a full eCommerce license or move to a free zone setup like Dubai CommerCity or EZDubai, which support larger business operations with expanded services and visa options.
Some entrepreneurs also ask about banking. While opening a business bank account with an e-Trader license is possible in some cases, not all banks accept this license. It is recommended to speak with local banks to understand their specific requirements for sole establishment businesses.
Need Help with Company Setup in Dubai? Contact Bestax for Expert Support
While the e‑Trader license is ideal for individuals running home-based or social media businesses, many entrepreneurs may eventually need to expand their operations. This could include opening a physical office, hiring staff, or attracting international customers. In such cases, upgrading to a full trade license or setting up a company in a free zone or mainland Dubai may be the next step.
Setting up a business in the UAE involves several steps, including:
- Choosing the right legal structure (such as LLC, sole establishment, or free zone company)
- Registering a unique trade name
- Securing the necessary government approvals
- Obtaining a business license from the appropriate authority
- Opening a corporate bank account
- Applying for residence visas (if required)
This process can be complex, especially for new entrepreneurs or foreign investors. That’s why many individuals and companies choose to work with experienced business consultants like Bestax Chartered Accountants.
Bestax is a trusted name in company formation services in Dubai, offering expert guidance on all aspects of business setup. Whether you’re applying for an e‑Trader license, starting an LLC, or launching a company in a free zone like Dubai CommerCity.
FAQs About the E‑Trader License in Dubai
What is an E‑Trader License in Dubai?
An E‑Trader License is a sole proprietorship license issued by Dubai’s Department of Economic Development (DED) that allows individuals to legally sell products or services online without needing a physical office. It is designed for home-based businesses and digital entrepreneurs operating through websites or social media platforms.
Who is eligible to apply for a Dubai E‑Trader License?
Only UAE and GCC nationals who are residents of Dubai and at least 21 years old are eligible to apply for the E‑Trader License. Expatriates from non-GCC countries are not currently eligible for this license.
What documents are required for an E‑Trader license application?
Applicants need a valid Emirates ID, UAE residence visa, and the Makani number (location identifier) for their residence in Dubai. Additional documents may be requested based on the selected business activity.
How much does an E‑Trader license cost in Dubai (2025)?
The total cost for an E‑Trader license in 2025 is AED 1,370, which includes AED 1,070 for the license and AED 300 for Dubai Chamber membership. Fees are payable online through the Invest in Dubai portal.
Can expats / GCC nationals sell products under an E‑Trader license?
GCC nationals residing in Dubai can apply for the license and sell approved products or services. However, expatriates from non-GCC countries cannot apply for or operate under an E‑Trader license.
What are the limitations of the Dubai E‑Trader License?
The E‑Trader License does not permit opening a physical store, hiring employees, or issuing visas. It is also limited to sole proprietorship and must comply with all DED and cybersecurity regulations.
How is an E‑Trader license different from an E‑Commerce license?
An E‑Trader license is for individuals running small, home-based or social media-based businesses without a physical office or visa quota. In contrast, an e-commerce license allows larger operations, employee sponsorship, and often requires a commercial office or warehouse space.
Can I open a business bank account with an E‑Trader License?
Some banks in the UAE may allow E‑Trader license holders to open a business account, but it depends on the bank’s internal policies. Applicants may need to provide proof of business activity, customer payments, and supporting documents.
Disclaimer: The information provided in this blog is for general informational purposes only. For professional assistance and advice, please contact experts.
