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Is a Trade License Required to Sell on Social Media in Dubai?

By Sakshi Srivastava - 02 Jun 2022 Last Updated: 02 Jun 2022
Is a Trade License Required to Sell on Social Media in Dubai?

Table of Contents 

  1. 1. Scenario regarding Conducting Business of Social Media in Dubai
  2. 2. What happens if you sell something without a License on Social Media?
  3. 3. In Dubai, how do you Obtain a Social Media License?
  4. 4. Conclusion

Trading on land is the same as selling on social media. Both of these economic pursuits require a trade license from the government. Small enterprises and independent entrepreneurs can now use social media to launch their businesses on a simple and cost-effective platform. Social media platforms not only have a large audience, but they also need little time and money. It has, nevertheless, become a haven for criminal and fraudulent activity. The UAE government has made it compulsory to get a commercial license in Dubai in order to protect online consumers and companies.

Thus in today's blog, Dhanguard will discuss conducting business on Social media in the absence of a Social Media License. So without any further ado, let's learn!

Scenario regarding Conducting Business of Social Media in Dubai

Many illegal commercial websites and social media pages without a valid trade license in Dubai were shut down in 2018 by the UAE Ministry of Economy and the Telecommunications Regulatory Authority. Over 13,000 social media profiles were ordered to be closed by the Department of Economic Development (DED) in the same year for engaging in unauthorized trading. The DED and the Department of Consumer Protection took action against some social media accounts for selling large quantities of counterfeit goods.

The Electronic Media Regulations law was passed in March 2019 in response to an increase in unlicensed selling and online fraud. According to the law, online activities for business reasons in Dubai require a trade license. The Department of Economic Development (DED) and the National Media Council in Dubai must approve the trade license (NMC). The operations include the sale of goods and services, as well as any other commercial use of an internet platform. The law also covers dealers, vloggers, and influencers who use social media for business purposes.

Read More: Corporates Taxes and Freelancing: What You Should Know if You are a Freelancer!

What happens if you sell something without a License on Social Media?

The most popular platforms for selling goods and services include Facebook, Instagram, and WhatsApp. These, as well as other social media platforms, are subject to UAE commercial law. As a result, selling products or services online without a trade license might result in fines of up to AED 500,000 for UAE nationals and residents. UAE authorities monitor and regulate social media networks in the country. Their mission is to promote fair trade practices and to safeguard customers from online scams.

In Dubai, how do you Obtain a Social Media License?

For companies interested in doing business in Dubai, the Department of Economic Development (DED) grants business licenses. The DED requires a license for any form of business, whether online or offline.

A trade license issued by the DED and the NMC is required for selling on social media. You will be able to freely upload and promote product and service-related content within the terms of the license. It will also provide you the creative flexibility to create your own company.

Conclusion

Selling on Social Media can be beneficial for you as the reach of your product can multiply easily which means more people in UAE as well as outside the country will be able to get their hands on your product. You can easily get in touch with our Experts to get your Trade License in a short span of time and without any hassle. Thus, we hope this blog provided you with insightful information. FSelling on Social Media can be beneficial for you as the reach of your product can multiply easily which means more people in UAE as well as outside the country will be able to get their hands on your product.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Dhanguard provides faster and hassle-free Trade License with minimum paper work. With the guidance of our professional team of consultants you will get General trading license, Freelance license, Etrader license, Event Management License, Travel Agency license in Mainland and Freezone in UAE.

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