Dubai Department of Economic Development (DED) introduced several E-Trading license activities to make Dubai an E-Commerce hub. Entrepreneurs can now obtain a specific license for creating online trading platforms. However, the new e-commerce initiative in Dubai prompted many questions in relation to whether an e-commerce license is mandatory, and what such license permits.
Here is the reply to your concerns
What is an E-commerce license?
Selling products or services through a website or app is quite easy and familiar to many Entrepreneurs. Such e-commerce businesses require licenses for their activity.
A Mainland E-Commerce ‘DED’ license allows the businessman to sell their products in the UAE completely online automated applications without much human interaction.
It allows for the acceptance of payments through payment service providers, which offer online electronic payments by a variety of payment methods including credit cards, smart cards, and digital money E-cash.
When do a DED e-commerce license is required?
If you are targeting the local market, where your clients are within UAE, for such businesses you require a DED e-commerce license.
E-commerce activities introduced by the DED
- Garments, Textiles, and Gifts E-Trading;
- Publications and Media Materials E-Trading; Equipment E-Trading;
- Sport and Recreational Events Tickets E-Trading.
- Jewelry and precious stones E-Trading;
- Household, Professional and Personal Goods E-Trading;
- Vehicles and Transport means E-Trading;
Is freezone e-commerce license helpful?
Yes, if you want to start an e-commerce business in the UAE to sell digital products outside UAE free zone E-Commerce licenses are always helpful. For this, no additional license of the DED is needed. One simply needs to set-up the correct free zone company. Free zones having their own regulations. In addition, they cannot conduct commercial activities in the wider UAE (outside of the free zone). Therefore, for a trader to freely trade and sell its products online, the trader must also obtain a license from the DED.
In short, as far as the UAE is concerned, a free zone company with an E-Commerce activity can only act as a middleman, unless it also obtains a license from the DED.
Do ‘One’ need office to obtain the license?
Yes. Xpand Business Services can advise you easy and cost-effective methods to it.
Do you wish to start an e E-commerce business?
If you are interested in creating an E-commerce business to target Dubai and the wider UAE, please do not hesitate to contact us directly with the form below…
Call us: +971-56-697-0088
Email: maria@xpanduae.com