Are you here in the UAE and selling items online without a license to do it? If you are, you’re at risk of paying up to AED500,000 fine.
Lawyers have warned residents in UAE that selling garments, handbags, shoes, accessories and home-made food on Facebook and Instagram Lives, as well as on WhatsApp groups.
UAE authorities have imposed a rule that whoever sells items online has to obtain a trade license to carry out any commercial activities online.
“We have come across a number of cases, including online catering and bakery businesses that offer great quality foods to online customers. But as a result of not being properly licensed, some do not accept card payments as they are unable to procure payment terminals,” Yousif Ahmed, senior legal consultant at Davidson & Co law firm told Khaleej Times.
Ahmed added that if these online sellers’ clients face health issues, these businesses could find themselves in a vulnerable position as they are unregulated and therefore, could be exposed to further penalties by the authorities.
“Some stay-at-home mothers were found to be running garment and beauty businesses where they would sell tailor-made clothes, accessories and beauty products through social media channels without official approval or license. Individuals conducting such business may consider what they are doing as seemingly innocuous, however, they are putting themselves at risk of incurring fines and possible criminal sanctions,” Rhea Binandra, an associate at the same law firm, told Khaleej Times.
Online sellers without license are advised to comply with UAE commercial license activities to avoid getting slapped with penalties of up to AED500,000.