Experts believe that by 2028 the global social media commerce market will be worth a staggering USD 3,370bn! So, if you have a product or service to offer, you should be actively promoting it on social media.
When it comes to selling online in the UAE, it is considered the same as selling from a physical store. To do either of these, you require a business license. They also view selling on social media as a business activity under online selling. With so many social media platforms available to sell on, the UAE government needs to regulate the social media commerce market.
So, when it comes to selling on social media in Dubai, it’s crucial that you are fully aware of the legal requirements, the benefits, and the steps to getting your license. In this article, we will cover the following topics:
• Do you need a trade license in Dubai to sell on social media?
• Benefits of selling products and services through social media.
• Steps to get a Dubai business license to sell on social media
• Working with Creative Zone.
Do you need a trade license in Dubai to sell on social media?
The Department of Economic Development (DED) requires companies to obtain a business license to conduct business online in Dubai. Moreover, payment gateway companies will not allow you to use their services – receive payments – without a company license. According to UAE law, if caught operating without a permit, you may face fines of up to AED 500,000.
Benefits of selling products and services through social media.
Selling via social media offers many advantages in today’s business landscape. A presence online is a must for businesses in some industries. Many companies have gone out of business because they could not adapt to the online marketplace. Here are a few benefits of selling through social media:
Brand Awareness: Brand recognition is critical as it is the first step towards purchasing when your brand is acknowledged and visible. Investing effort and money in your social media presence will help you get visibility. Your visibility will improve as you create and share appealing content that reflects your business.
Customer Engagement: Customer engagement is another essential factor. Even the most professional social media profiles can fail this test. Always respond to comments in a way that is consistent with your brand. Starting or promoting conversations in the comments section of your posts is critical for sharing product information and allowing existing consumers to recommend your business to new potential customers. Customer engagement is an excellent opportunity to get people talking about the quality of your offering.
Boost Website Traffic: Social media helps increase the online traffic to your website. Instagram, for example, can help drive traffic to your website and thus increase revenue. Potential consumers may not be actively seeking your product, but seeing it advertised on social media may encourage them to visit your site and determine if it is right for them. That is why a solid social media strategy includes putting your brand’s profile in front of potential customers and then directing them to your website to buy. In the perfect scenario, it reminds buyers of the excellence of your items every time they read a post from you, resulting in future sales.
Steps to get a Dubai business license to sell on social media
If you follow a simple, step-by-step process, setting up a business in Dubai can be easier than you think. Work with Creative Zone and simplify the process into five easy steps.
1. Choose a name for your business
The first step is to decide on a name for your company. The UAE has a strict policy on business names, so be aware of them and avoid unpleasant or offensive language, profane names, and trademarked terms.
2. Determine whether to obtain a license in a free zone or on the mainland
A free zone or the mainland can provide your business license. While a free zone company cannot trade with the local UAE market, it does have 100% business profit repatriation, 100% business ownership, no customs fees, and no corporate tax. With a mainland license, you can offer your services and products to both international and local markets.
3. Apply for an e-commerce license.
Then you must apply for an e-commerce license in Dubai. If you choose a mainland license, you must apply to the DED, the licensing authority for e-commerce. For a free zone license, you can apply directly to the free zone of your choice.
4. Submit your visa application
After receiving your license, you can apply for a UAE visa. Additionally, you can also apply for your staff and family members along with your visa application.
5. Establish a bank account
After acquiring your license, you need to open a bank account. You cannot operate a business in the country unless you have a bank account.
If you are interested in selling on social media in Dubai, our business setup managers can assist you in obtaining an e-commerce business license. Contact us today to get started.
Frequently asked questions:
Is online selling allowed in Dubai?
Definitely, but only if you are correctly licensed. It is illegal to do any business in Dubai without a license. E-commerce licenses are required if you want to sell products online.
Can I sell things on Instagram in the UAE?
Yes. In the UAE, it is legal to sell on any available social media platform. However, once again, you must be appropriately licensed to do so.
Do I need a license to sell online in Dubai
Yes, companies wishing to conduct business online in Dubai must get a business license. You can apply for one with the DED, or contact us to help you get one.
Working with Creative Zone
Hopefully, this guide has cleared any doubts you have about selling on social media. You now know that it is legal, and you can sell your products on social media, provided you have a business license.
Creative Zone is the oldest and most trusted company setup expert in the United Arab Emirates (UAE). Since our establishment in 2010, we have helped over 44,000 entrepreneurs start and grow their businesses. We specialise in offering prompt, reliable, hassle-free, and professional support to help you start a business.
Getting your business set up in Dubai is just the beginning. In addition, we provide a wide range of services, including tax preparation, legal advice, and human resources management.
The advantages do not stop there, either. Through our networking tool, CZ Connect, every Creative Zone client has access to a vibrant community of like-minded business owners. This allows you to meet, network, and build important relationships with the larger business community in your area.
Take advantage of our free consultations today to get unbiased advice on starting a business in the UAE. Our goal is to help you find the best fit for your needs.