Social media selling is big business. From stay-at-home parents to students and graduates looking for work, Social Media makes it simple to buy and sell items. Sellers have access to massive markets on numerous platforms, including Facebook, Twitter, Instagram, Amazon, WhatsApp, forums, websites, blogs, and others. Selling clothes, accessories, electronics, sports goods, homemade food, and used cars is popular in the UAE, which is why a trade licence is required for customer and goods protection.
Because of the engagement of Social Media, it is now far easier to sell to customers. By hiring multiple people, you can run a full-fledged business setup in Dubai online. As a result, the government must regulate online businesses. The authorities in the UAE have launched an E-commerce licence to achieve this goal. In Dubai, the Ecommerce licence is also known as the online business licence. This is because the authorities want to regulate while also supporting the country’s online businesses.
Online businesses that want to sell on various social media sites will need to apply for an E-commerce licence in Dubai to formally recognise themselves as legitimate businesses.
What is the Dubai E-Trade license?
The Department of Economic Development (DED) launched the E-Trader licence in Dubai, UAE in 2017, with the primary goal of encouraging people to conduct business through social media. The E-trader licence in Dubai enables businesses to promote their services and products on social media, allowing them to sell their products more easily.
One advantage of online trading is that there is no middleman to introduce the product or service to the end-user; it is a direct transaction. This will assist us in obtaining a reasonable price for the end-user. Furthermore, through E- Trader License, an online platform, both parties – the businessmen and the end-user – can easily communicate about the products or services. Customers will be more likely to shop online and make purchases as a result of this.
Conditions to obtain E-Trade licence for online business in Dubai
It’s important to note that if you have an E-trader licence, there are some restrictions on what you can sell on social media in Dubai.
GCC and UAE National entrepreneurs with the licence can conduct commercial (selling physical products and goods) and professional (selling professional services) activities on their social media accounts.
Expats’ eligibility for an E-trade licence is determined by their nationality. Non-GCC ex-pats can sell professional services but not physical products on social media. This could include event management, maintenance, repair, and photography.
While food products are typically not permitted under this licence, it is best to double-check with DED for more information as licences are issued on a case-by-case basis.
The Department of Economic Development usually issues the business in Dubai for companies that are just starting out in the UAE. The DED issues physical or online trade licence in Dubai.
Businesses that operate online must obtain a licence from the DED and NMC, which allows them to freely post and promote content about their products and services and also allows them to begin business operations in Dubai. The licence allows you to unleash your creative side and implement actions that will benefit the business globally.
Any individual who sells items on Social Media without licence risks being fined heavily. Whether it’s online catering, tailoring, beauty, clothing sales, handbags, shoes, accessories, or homemade food, the individual must obtain a licence from the appropriate authority. Authorities in the UAE are actively pursuing all illegal trading websites and social media pages that do not have a valid trade licence to sell products in the UAE.
Individuals who operate such social pages and websites without a required licence may face a fine ranging from 5000 AED to 500,000 AED, as well as legal consequences.
Benefits of Selling via Social Media in Dubai
You can own 100% of your company. That means you won’t have to look for local sponsors in Dubai to help you start a business.
The online business licence allows you to easily register with the Dubai Chamber of Commerce and import and export from the country.
You can increase your customer base by promoting your products online. With an Ecommerce licence, you can easily open a bank account in Dubai.
Starting your own online business necessitates the acquisition of an e-commerce licence in order to trade legally in the UAE. Working with a company formation specialist will allow you to get started quickly. While the government has streamlined and simplified the trade licence process, making the right decisions still requires some hard work and in-depth knowledge of the region, its markets, and its many customs and regulations.
That’s why it’s always a good idea to hire business consultants to advise you on your company’s licence and setup based on your needs and budget.