Do you need a trade license in Dubai to sell on social media?
The selling on social media is similar to selling physically both are economic activities that require a license issued by the government to function. Social media has provided a platform to small businesses and independent entrepreneurs a cost-effective platform to commence their business operations.
Social media platforms are one of the cost-effective platforms that require low investment. These platforms provide a wide reach and one can grow with consistency and effort. The growing popularity of social media platforms has also given rise to a series of fraudulent and many illegal activities. To maintain security, online consumers and entrepreneurs have made trade licenses mandatory in Dubai.
If you’re a business entity operating on social media or any unauthorized commercial website without a trade license in Dubai you’re entitled to pay a penalty. Likewise, the Department of Economic Development has closed over 13,000 social media accounts that were commencing their business without the trade license.
There were social media handles who were indulged in selling counterfeit goods where Government and Consumer Protection had to intervene and take legal actions against social media pages. These activities led to the introduction of a trade license in Dubai sanctioned by the Department of Economic Development and National Media Council.
The trade license allows the users to conduct a series of activities that include selling goods, commodities, services, and other commercial use items through any online platform. The law is also valid if you’re using social media content creators, vloggers, and influencers for selling purposes.
FlyingColour Business Setup Services can help you in obtaining a trade license in Dubai to commence selling activities on social media without any hassle. The team of experts at FlyingColour provides you with the license in less than a week.
How to obtain a trade license for selling on social media?
The Department of Economic Development tends to issue the business in Dubai for companies who are commencing their business operation in UAE. Physical or online trade licenses are issued by the DED.
For businesses operating online they must obtain the license issued by the DED and NMC as it allows you to post and promote content freely of their product and services and also provides you the freedom to commence business operations in Dubai. The license provides you the leverage to let your creative side flow and introduce actions that can benefit the business globally.
Penalty for selling without trade license on social media
The major platforms where businesses start their business are WhatsApp, Instagram, and Facebook for selling products and services. The law is applicable on each platform and if you are doing business without the trade license UAE citizens are entitled to pay an AED 500,000 penalty fee to the UAE Government.
The social media channels are monitored by regulatory bodies to ensure there are fair trade practices and one doesn’t commence fraudulent activities on any social media platform.
