{"id":33430,"date":"2023-01-04T10:46:59","date_gmt":"2023-01-04T10:46:59","guid":{"rendered":"https:\/\/www.aaconsultancy.ae\/dubai\/?p=33430"},"modified":"2023-03-27T08:33:29","modified_gmt":"2023-03-27T08:33:29","slug":"differences-between-e-trader-license-vs-e-commerce-license","status":"publish","type":"post","link":"https:\/\/www.dev.aaconsultancy.ae\/dubai\/differences-between-e-trader-license-vs-e-commerce-license\/","title":{"rendered":"Differences between E-Trader License and E-Commerce License?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"33430\" class=\"elementor elementor-33430\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-eb23e3f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"eb23e3f\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4e6bbe0\" data-id=\"4e6bbe0\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-af0e7bc elementor-widget elementor-widget-text-editor\" data-id=\"af0e7bc\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">If you are planning to start an online business in the United Arab Emirates, you can choose from either of the two licenses such as an e-Trader License or an e-Commerce License. Both these licenses allow different types of business activities and have their own benefits. Since both licenses allow different types of business activities, different types of online businesses will require different types of online business trade licenses. And that is why we will discuss the <\/span><span style=\"font-weight: 400;\">Difference between E-Trader License vs E-Commerce License<\/span><span style=\"font-weight: 400;\"> to choose what\u2019s best for your online business.\u00a0<\/span><\/p><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">Also read <\/span><a href=\"https:\/\/www.aaconsultancy.ae\/dubai\/how-to-start-an-e-commerce-business-in-dubai-uae\/\"><span style=\"font-weight: 400;\">How to Start an Ecommerce Business in Dubai, UAE<\/span><\/a><\/p><p>\u00a0<\/p><h2><b>E-Trading Business in Dubai<\/b><\/h2><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">Investors and entrepreneurs prefer starting a business in the UAE due to its well-defined laws given for all types of business activities. In the UAE, you can get a legal license to sell products online via platforms like Facebook, Instagram, Twitter, Snapchat, etc. This license is called the e-trader license and is issued by the Department of Economic Development (DED).\u00a0<\/span><\/p><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">You need not have a sponsor or a national service agent to run your e-trading business. The day-to-day activities of an e-trading business involve selling products or services over several social media platforms. Therefore, it is important to note that non-GCC expats are only allowed to offer professional services in their social media business.\u00a0<\/span><\/p><p><br \/><br \/><\/p><h2><b>E-Trader License in Dubai<\/b><\/h2><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">The e-trader license in Dubai is an online trading business license released for small home-based online businesses. This meant that it was initially meant for small entrepreneurs and stay-at-home moms who wanted to sell their crafts online.\u00a0<\/span><\/p><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">Since the e-trader license allowed people to sell products through social media, other businesses started to register for it as well. The e-trader license also gave online businesses the credibility they needed to gain and build the trust of their customers.\u00a0<\/span><\/p><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">Listed below are the business activities allowed by the e-trader business license:<\/span><\/p><p>\u00a0<\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Online services<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">IT consultation<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Social media marketing and promotion<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Selling homemade products online<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Online event management<\/span><\/li><\/ul><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">A physical office or space is not required when you are working with an e-trader business license.\u00a0<\/span><\/p><p>\u00a0<\/p><h3><b>Requirements to Obtain an E-Trader Business License<\/b><\/h3><p>\u00a0<\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Must have a valid EID<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The applicant must be based in UAE with a minimum age of 21 years<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Must have a present Eijari and Makani number<\/span><\/li><\/ul><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">After you are done with the paperwork, you will need to:<\/span><\/p><p>\u00a0<\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reserve a trading name for your business<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pay the fee associated within 24 hours of license issuance<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ensure the annual renewal of your license, failure to renew will result in the auto cancellation of your license<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Successful completion of the registration process with the Department of Economic Development<\/span><\/li><\/ul><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">Also read <\/span><a href=\"https:\/\/www.aaconsultancy.ae\/dubai\/how-can-i-renew-my-trade-license-online-in-the-uae\/\"><span style=\"font-weight: 400;\">How Can I Renew my Trade License Online in the UAE<\/span><\/a><\/p><h2><b>E-Commerce Business in Dubai<\/b><\/h2><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">Online shopping has become an integral part of everyone\u2019s day-to-day life. It is affordable, convenient, and provides you with tons of choices that you can choose to your liking. An e-commerce business involves selling products or services to the general public and it requires you to secure an e-commerce business license. Therefore, you can make use of social media channels and other online selling platforms.\u00a0<\/span><\/p><p>\u00a0<\/p><h2><b>E-Commerce License in Dubai<\/b><\/h2><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">The e-commerce license in Dubai was released for the purpose of running bigger businesses that wanted to run e-commerce in the country. This precisely means that an e-commerce license allowed everything from the storage and transportation of products to online transactions and advertisements.\u00a0<\/span><\/p><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">Listed below are some of the business activities allowed with an e-commerce business license:\u00a0<\/span><\/p><p>\u00a0<\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To start an e-commerce business<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Store physical business goods<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transportation of goods<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sell products online<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Advertise products online<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sell digital goods<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Spare parts, machine parts, etc.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Deliver products to customers<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Accept online payments<\/span><\/li><\/ul><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">The e-commerce license in Dubai offers a huge scope than the e-trader license. However, you will need a bigger starting capital and a lot of helping hands to completely utilize the e-commerce business license.\u00a0<\/span><\/p><p>\u00a0<\/p><h3><b>Requirements to Obtain an E-Commerce Business License<\/b><\/h3><p>\u00a0<\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Formation of a sole proprietorship or LLC company under the Company Commercial Law 2015<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">VAT registration with the Federal Tax Authority<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A registered office for business documentation and legal billing<\/span><\/li><\/ul><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">After you are ready with the above-mentioned requirements, you will need to apply for a license with the concerned economic department with:<\/span><\/p><p>\u00a0<\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A legal trading name for your business<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Registration with any of the UAE\u2019s customs and ports authorities for import and export activities<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Apply for an initial approval certificate, which is valid for six months<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Open a corporate bank account that will suit your business needs<\/span><\/li><\/ul><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">Also read <\/span><a href=\"https:\/\/www.aaconsultancy.ae\/dubai\/opening-a-business-bank-account-in-the-uae-for-entrepreneurs\/\"><span style=\"font-weight: 400;\">How to Open a Business Bank Account in the UAE for Entrepreneurs<\/span><\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/p><p>\u00a0<\/p><h2><b>Difference between E-Trader License vs E-Commerce License<\/b><\/h2><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">As it is clear from the above-mentioned details, the main difference between an e-trader license and an e-commerce business license is that the former is used for small businesses while the latter is for bigger businesses.<\/span><\/p><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">Apart from this fundamental difference, there are several other factors that set these two apart. Learning about the differences will help you understand which license suits your business.\u00a0<\/span><\/p><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">Here are some of the other differences between the e-trader license and the e-commerce license:<\/span><\/p><p>\u00a0<\/p><ol><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Size of Business<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Business activities<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">License registration process<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cost of obtaining the license<\/span><\/li><\/ol><p><br \/><br \/><\/p><p><span style=\"font-weight: 400;\">Read <\/span><a href=\"https:\/\/www.aaconsultancy.ae\/dubai\/how-can-business-consultants-help\/\"><span style=\"font-weight: 400;\">How Business Setup consultants in Dubai can help you <\/span><\/a><span style=\"font-weight: 400;\">with your business.<\/span><\/p><p>\u00a0<\/p><p><a href=\"https:\/\/www.aaconsultancy.ae\/dubai\/\"><span style=\"font-weight: 400;\">A&amp;A Associate<\/span><\/a><span style=\"font-weight: 400;\">, one of the best business setup consultants in Dubai, can help you decide which type of business license would suit your online business. We can help you set up your business while you sit back and relax knowing your business is in safe hands.\u00a0<\/span><\/p><p><br \/><a href=\"https:\/\/www.aaconsultancy.ae\/dubai\/contact-us\/\"><span style=\"font-weight: 400;\">Contact us<\/span><\/a><span style=\"font-weight: 400;\"> today to take full advantage of our consultations! <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>If you are planning to start an online business in the United Arab Emirates, you can choose from either of the two licenses such as an e-Trader License or an e-Commerce License. Both these licenses allow different types of business activities and have their own benefits. Since both licenses allow different types of business activities, [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":33439,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[27],"tags":[170,120,172,171],"class_list":["post-33430","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-business-setup","tag-dubai","tag-e-commerce-license","tag-e-trader-license"],"_links":{"self":[{"href":"https:\/\/www.dev.aaconsultancy.ae\/dubai\/wp-json\/wp\/v2\/posts\/33430","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.dev.aaconsultancy.ae\/dubai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dev.aaconsultancy.ae\/dubai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dev.aaconsultancy.ae\/dubai\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dev.aaconsultancy.ae\/dubai\/wp-json\/wp\/v2\/comments?post=33430"}],"version-history":[{"count":5,"href":"https:\/\/www.dev.aaconsultancy.ae\/dubai\/wp-json\/wp\/v2\/posts\/33430\/revisions"}],"predecessor-version":[{"id":35662,"href":"https:\/\/www.dev.aaconsultancy.ae\/dubai\/wp-json\/wp\/v2\/posts\/33430\/revisions\/35662"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.dev.aaconsultancy.ae\/dubai\/wp-json\/wp\/v2\/media\/33439"}],"wp:attachment":[{"href":"https:\/\/www.dev.aaconsultancy.ae\/dubai\/wp-json\/wp\/v2\/media?parent=33430"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dev.aaconsultancy.ae\/dubai\/wp-json\/wp\/v2\/categories?post=33430"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dev.aaconsultancy.ae\/dubai\/wp-json\/wp\/v2\/tags?post=33430"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}