According to recent official statistics released by the Department of Economic Development in Dubai (DED), more than 3,000 licences have been granted since 2017 for the sole purpose of trading products on social media platforms. The majority of the participants were UAE citizens, with the remainder consisting entirely of expats and international investors. According to the statistics, 60 percent of all licences have been granted to women entrepreneurs, which represents a significant proportion of the total.
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What is the requirement for a licence for social media companies in Dubai?
It is essential for social media companies in Dubai to get a business licence in order to conduct legitimate commercial operations. The purpose of obtaining a trade licence for social media companies is not only to protect the whole trade, but it also serves an essential role in boosting customer trust while shopping for goods and services on the internet. Social media platforms in the United Arab Emirates are regulated and standardised by the UAE government. The ultimate goal is to engage in fair commerce while protecting customers from confusing online commercial frauds and scams.
Is there a punishment for social media companies that are not properly licenced in Dubai?
There was a major shutdown of the UAE Ministry of Economy, as well as the Telecommunications Regulatory Authority, throughout the year 2018. The authorities in Dubai have ordered the closure of illegal business websites and social media accounts that are selling goods without a valid trade licence.
Another media source said that the Department of Economic Development in Dubai has ordered the closure of over 13,000 social media accounts in 2018 due to illegal marketing, according to the Department of Economic Development. In due time, a penalty of up to AED 500,000 was imposed for selling goods or services online without a valid business licence in the UAE. A DED licence is required for selling goods and services on social media platforms like as Facebook, Instagram, and WhatsApp, according to the article. If selling is not done with a DED licence, fines will be assessed.
Do social media companies in Dubai need the acquisition of an e-traders licence?
Yes, in order to establish a company on social media in Dubai, you will need an e-traders licence from the government. One person may have an e-Trader licence, which can be registered in his or her own name. An e-trader licence in Dubai may be obtained by submitting evidence of identification, information about the kind of business activity you want to establish, and information about the account through which goods and services will be presented. The papers are validated, and the licence is granted for AED 1070 with a one-year validity period for a total cost of AED 1070.
Users of social media will benefit from the e-trader licence since it removes the barriers they previously encountered and increases the responsibility of your intellectual property. With an e-traders licence in Dubai, you may also increase customer trust while also removing the danger of infringing on a registered trade name or other intellectual property via your operations.
The e-trader licence in Dubai, on the other hand, has certain restrictions. Commercial enterprises that have an e-trader licence are unable to rent commercial premises or open a store; maintain a corporate bank account; or even obtain or issue visas.
So, what is the process for establishing a fully-fledged company in Dubai that gives you with a visa, a bank account, rental choices, and the ability to sell on social media platforms like Facebook and Twitter?
For social media and internet companies in Dubai, the Department of Economic Development facilitates unrestricted company openings as well as an inviting business climate.
However, if you want to start an internet business in Dubai or intend to offer products and services on social media, it would be best if you established a full-fledged company. The establishment of a corporate bank account not only provides security for the company’s future possibilities, but it also provides the freedom to rent office space, issue visas, and route the company’s income via the account.
Steps to establish a company in Dubai, whether it be offline or online, are outlined below.
Forms for obtaining a licence from the government
Certificate of reservation of a name
Certificate of approval for the first time
Approval from external departments
Certificate of EJARI registration for the tenancy contract
Partners’ passport copies, as well as a letter of authorization (NOC) (if any)
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