The eCommerce and digital business in Dubai have grown at a stead-fast pace over the last 3 to 4 years. For a Social Media Influencer to conduct any online trade in Dubai will require an E-trader License.
Growing Digital Ecosystem in Dubai
Online shopping and social networking sites have seen immense traction and popularity in Dubai.
To ensure that digital media-related activities are streamlined and consumer rights are protected always, the UAE government has introduced some regulations and licensing requirements for those involved in selling goods and services online.
As the eCommerce ecosystem is growing in Dubai and brands are launching marketing initiatives in the online space, the modern consumer is extensively utilizing the online space for shopping and other digital services.
To promote online trading and offer more credibility to online traders and social media influencers, the Department of Economic Development (DED) Dubai has introduced the E-trader License.
What is E-trader License in Dubai?
You will need an E-trader License in Dubai if you are an individual who promotes or sells products and services through Social Media or Personal Websites.
The E-trader License in Dubai, allows individuals to legally promote handmade products, photography services, etc., via social media channels.
The individual can apply for the E-trader License without having a physical office space and it does not require to submit any Ejari documents. There will be no visa quota for E-trader License.
It is a perfect starter plan for single-owner, home-based, and freelance businesses to operate their trade online.
The e-Trader License issued by the Dubai Economy (DED) enables UAE nationals, and GCC nationals in Dubai to conduct business activities through various social media networks.
There are certain business activities such as Services that are eligible for other Nationalities too. However, E-trader License is applicable to UAE nationals only.
Also, an e-Trader License allows single ownership only. With the e-Trader License, one cannot open a shop or issue visas but operate from home.
Steps for Applying for the E-trader License in Dubai
- Firstly, Fill in the E-trader Registration form with details such as Proof of identity, type of business activity, and the account where the products & services will be deployed
- Finally, Get the entries validated from the governing authority and initiate the payments and get the E-trader license issued
Individuals who sell products and services via the internet without the required trade license will entertain fine from the authorities.
Influencer License in UAE
Social Media Influencing is a big business globally. Influencer Marketing in the UAE is gaining popularity among the younger generation. As the Influencer market is growing, the government has launched few regulations to protect the public from getting mislead by fake accounts.
As per the new rule, any Influencer who is directly getting income from their posts must obtain a trade license and a UAE Influencer License or a Social Media License.
Applying for an Influencer License in Dubai
Setting up your Social Media Company in the Freezone is the best option for Social Influencers. Another option available in Dubai is a Social Media License from the Dubai Department of Economic Development.
There are a couple of Freezones in the UAE tailor-made for Media and Digital activities.
The company incorporation process in Dubai is quick and easy. The tax savings and 100% company ownership, 100% profit repatriation, etc., is advantageous to the media entrepreneurs.
There are a few new rules introduced by the UAE National Media Council (NMC) to make the influencer industry more professional and transparent.
Freelancing License is another prospective option for an individual to start a Social Media Company or an Influencer Marketing Company.
You must be having a UAE residency visa and Emirates ID before you can apply for a Social Media License in the UAE.
Applying for Social Media Influencer License in Dubai
The National Media Council (NMC) in the UAE has a mandatory license for all Social Media Influencer and all social media users indulged in advertising, news sharing, and brand promotion to secure an E-Media License from the NMC.
Eligibility criteria for certificate issuance from the National Media Council (NMC) in Dubai
- The individual has to be 25+ years
- Must have a good reputation and a credible profile
- Not currently a member of NMC
Documents required for National Media Council License in Dubai
- Emirates ID photocopy
- Registered tenancy contract or title deed
- Trade Licence copy
UAE is striving ahead by introducing flexible business setup services to meet the requirements of the new-age entrepreneurs.
Fines for not Applying for Social Media Trading License?
Any selling of items on Social Media without a license will risk the individual paying hefty fines.
Be it operating online catering, tailoring, beauty, garments sale, handbags, shoes, accessories, and homemade food. The individual has to get a license from the required authority.
Authorities are actively tracking down all illegal trading websites and social media pages in UAE who does not have a valid trade license to sell products in UAE.
The individuals operating such social pages and websites without a required license could get a fine of 5000 AED to 500,000 AED and further face legal consequences.
Looking for operating a Social Media Business from home, Flexi-desk office, or as a small Media Company, talk to our expert Business Consultants!
Contact: Aurion Business Consultants