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Selling on social media has become a huge business. From stay-at-home dads and moms to graduates and students looking to earn income, selling on social media has become a trend. Across many social media platforms such as Instagram, Facebook, Twitter, Amazon, WhatsApp, websites, forums, blogs, and more. Selling accessories, clothes, sports goods, electronics, used cars, and homemade foods is popular in the United Arab Emirates, and that is why it is necessary to know the answer to the question Do You Need a Trade License in Dubai to Sell on Social Media?
Today, it has become very easy to sell on social media. No matter how small or big your business is, or the price of your products, you must have a trade license to legally sell any items using social media in the United Arab Emirates.
In this article on Do You Need a Trade License in Dubai to Sell on Social Media, we will tell you which trade license you need to get, how to update your visa, and more.
Ecommerce Business: Selling on Social Media
No matter the size of your business or what you are looking to sell, social media can help you get lucrative profits and rewards. Social media allows users to engage with customers on a one-to-one basis, build a unique brand, and market to a large audience, and social media helps boost traffic to your products, blogs, or website for higher sales figures.
Selling on social media in Dubai, United Arab Emirates is completely legal as long as you have a valid trade license and visa. Due to the rise of counterfeit products and other illegal transactions on social media platforms, the UAE government has the authority to close down any online shops and illegal websites with penalties of up to AED 500,000 for lawbreakers.
As we have mentioned before, there are two types of trade licenses available for online shopping business setup for foreign nationals: e-Trader or Social Media Influencer License and eCommerce License.
Best Trade License for Selling and Buying on Social Media
The two most common types of trade licenses are e-commerce licenses and e-trader licenses.
e-Trader License or Social Media Influencer License
This license known as an e-trader license or social media influencer license is aimed at individuals who are selling on social media. A Social Media Influencer or Brand Ambassador is considered a business activity in the UAE. The Electronics Media Regulation Law 2019 established the e-trader license and also defined its scope and functions: e-trader license is for a single shareholder or a freelancer working from home. This type of company cannot hire staff, open a physical shop, or rent a space.
e-Commerce License
An e-commerce license is issued by the Ministry of Economy and the Telecommunications Regulatory Authority. It entitles an individual to sell items on social media in a regulated way – for the seller and buyer’s protection.
With just a few simple steps, you can start your own ecommerce company. If you are unfamiliar with the trade licenses needed for your online business, A&A Associate, business setup consultants in Dubai, can help you find the right trade license and to set up your company.
Steps to Obtain a Social Media License
The digital age does not mean it is free for all in terms of setting up an online platform or business activity. The steps for obtaining a trade license are pretty straightforward. Following the steps listed below will help you to obtain a trade license for your social media business.
Step 1: Partner with a Trade License Zone
Partnering with any business setup consultants in Dubai such as A&A Associate can make things easier for you. To benefit from all the legal structures of operating with a trade license, you have to follow certain business structures and formation regulations. Our team of specialists at A&A Associate will help you manage all the aspects of your company’s formation process and guide you on the various municipal and governmental trade regulations for operating in the UAE.
Step 2: Choose a Business Structure
Free zones are special economic zones for dedicated industries such as e-commerce sales and ecommerce business. The list of free zones in Dubai offers various benefits, such as business support services and tax incentives, tailored to each industry. Free zones not only offer you trade licenses to businesses but also access to business clients, infrastructure, skilled workers, and a high volume of customers. A free zone company gives you access to the local and world market.
Step 3: Choose and Register a Unique Business Name
Business setup consultants in Dubai such as A&A Associate can help you choose the right name for your online business and ecommerce license. According to Dubai’s Registry office, business names must not include any offensive or blasphemous language. As a foreign investor, you can include your name in your company name for the Dubai economy and the UAE market, but you must use your name in full rather than just your initials or surname.
Step 4: Notarize Your Company Documents
During this step, you will need to apply for the notarization of your company’s documents. Once the Registry office approves your company’s name, you can have the business’ MOA (Memorandum of Association) and AOA (Articles of Association) notarized with DED (Department of Economic Development).
Step 5: Submit Your Business License Application
Once your company documents are notarized and your trade license application forms are completed, you must submit these along with your business plan to the DED (Department of Economic Development). The list of documents needed are listed below:
- Proof of address and ID for shareholders and directors
- Passport copies for directors and shareholders
- Copy of trade name confirmation from the Registry Office
- Copy of trade license application form
- Proof of initial activity approval from Dubai’s management agency
- MOA
- AOA
- Payment for a specific trade license
Step 6: Getting Trade License
Once your documents are approved by the DED (Department of Economic Development), they will issue you with a relevant trade license. This process mostly takes 2 weeks.
Follow the above-mentioned steps to legally issue a trade license for your ecommerce business. A&A Associate, business setup consultants in Dubai, can help you get a legal trade license in Dubai. Contact us for our help now!
