The United Arab Emirates is a great place to start and expand your online business. The UAE government has made it easy and attractive for foreign investors and professionals to set up and operate businesses in the country. You can enjoy not only tax advantages in free zones but also other incentives such as UAE residency by investment visas through property investments and access to e-commerce platforms like Amazon.
Among the most popular and profitable online marketplaces in the world, Amazon offers a wide range of products and services to millions of customers across the globe. In 2023, you can sell on Amazon UAE not only as a company but also as an individual entrepreneur or an Emirati homemaker. However, you need to follow the country’s rules and regulations when you list your products on Amazon or any other e-commerce platform like Noon, for instance. One of the most important rules is that you shall have a valid business license.
Is it indeed realistic to trade on Amazon UAE without a business license? Who can sell on Amazon UAE? What are the requirements for selling on Amazon UAE as a non-resident? Below, we will answer these and lots of other questions. We will also provide you with contact details of Q Wealth experts. To set up your Amazon business in the UAE, contact them for assistance and recommendations without further delay.
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Who can sell on Amazon in the UAE?
Selling on Amazon can be a rewarding opportunity for anyone who wants to start or grow their online business.
However, selling on Amazon in the UAE is not as simple as creating an account and listing your products. You need to comply with the rules and regulations of the country, which may vary depending on your residency status and business structure. In most cases, you can’t do it without a valid trading license in the UAE.
However, for non-resident sellers with active trading companies authorized to sell on Amazon the said license is not always obligatory. For more information on the subject, you are welcome to browse Amazon directly or contact Q Wealth’s world-class experts.
Below, we will explain who needs a trading license to sell goods via their Amazon store in Dubai or any other emirate in the UAE, and how to obtain one as an individual or a company. We will focus on the following categories of sellers:
- Emirati citizens (individuals)
- sole proprietors in the UAE
- resident companies in the UAE
- non-resident companies established in UAE Free Zones.
Currently, e-commerce is on the rise in the UAE, with an anticipated annual revenue growth rate of 10.3% by 2025.
Amazon trading and its advantages in the UAE in 2023
In 2023, Amazon is a popular online marketplace where lots of resident and non-resident companies and individuals choose to sell their goods. And here’s why:
- An Amazon seller account in the UAE is a great way to reach a large and diverse customer base without having to spend money or time on marketing your products.
- You can save on the costs of renting or buying physical premises, maintaining inventory, or advertising your products.
- You can rely on Amazon’s automated system to handle order processing, payment collection, and customer service for you.
- You will avoid hiring extra staff to manage your online business.
- You can offer a wide range of products and services to your customers, from books and electronics to beauty products and home services.
Don’t forget that you will have to provide your bank account details when creating an Amazon seller account in the UAE so that you can receive earnings from your sales.
Whether you are an individual or a company, Q Wealth can help you set up and grow your online business on Amazon in the UAE and abroad. Without further delay, contact us to open personal and corporate bank accounts and start selling on Amazon UAE. Trade online both in the UAE and other jurisdictions worldwide supported by the industry’s best!
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How to get an Amazon license in the UAE
Here’s the standard licensing procedure for companies in the United Arab Emirates to engage in Amazon sales in 2023:
- Determine the business sector and select the appropriate company structure – whether it’s a sole proprietorship, branch company, LLC, or another suitable form.
- Register the company name while ensuring compliance with all relevant requirements and limitations.
- Establish a legal entity in one of the popular emirates, such as Dubai, which offers favorable conditions for company setup within a free zone. Alternatively, you can create a local business entity on the mainland in the UAE.
- Pay all the registration fees necessary to incorporate the legal entity in the UAE.
- Open a dedicated bank account for business operations.
- Obtain a trading license that specifically authorizes electronic commerce and product sales in the UAE.
FYI: Feel free to become a sole entrepreneur in the UAE. It is an easy thing to do if you have a freelancer visa and are a sole proprietor.
Do you need a trading license to sell on Amazon?
If you want to sell on Amazon in the UAE, you may wonder if you need an e-commerce license for that. Depending on your circumstances, the answer may vary:
- According to the Amazon regulations, most sellers do not need a trading license to sell on the platform in the UAE. However, some exceptions do exist for certain product categories such as cars, alcohol, or medical products and legal entities acting as sellers. These sellers need to submit their license and permit details during the registration. Individual sellers on Amazon in the UAE usually only need to provide their bank account and personal information. Foreign individuals who are not tax residents in the UAE can also sell on Amazon without a license while living in their home countries.
- Under the UAE laws, a trading license for e-commerce conducted through third-party platforms is mandatory. This requirement applies to residents, as well as both local and foreign companies, if they are making money from UAE customers. Sellers who do business on Amazon without a proper trading license may face penalties for operating without the necessary authorization.
Therefore, to start selling products, whether they are yours or third party’s, on Amazon in the UAE, getting a trading license is a crucial step. The requirement applies to both UAE citizens as well as legal entities and companies operating within UAE Free Zones.
Obtain a trading license for Amazon in the UAE as an individual
If you are a UAE resident and you want to sell on Amazon in the UAE as an individual or a sole proprietor, you need a valid e-commerce license that would allow you to do online trading legally. One of the easiest and fastest ways to get an e-commerce license is to apply for a DED Trader License.
With the DED Trader License, you have the right to establish a seller account on Amazon, allowing for the sale of products and services on the global platform. The online trading activities of DED traders are subject to oversight by the Department of Economic Development. This particular license may only be issued to the sole proprietor of the business. The latter may be either an individual entrepreneur, freelancer, or single-owner enterprise. A fundamental prerequisite for obtaining the trader’s license is citizenship or residency of either UAE or a GCC country.
Business licenses for Amazon in the UAE
If you are a company or a sole proprietor registered in the UAE, whether on the mainland or in a Free Zone, you need to have a valid e-commerce license to sell on Amazon in the UAE in addition to your general trading license. An e-commerce license is a document that allows you to conduct online trading legally in the UAE. It is different from a general trading license, which only covers physical transactions.
To get an e-commerce license for Amazon in the UAE, you need to follow one of these scenarios, depending on your business location and structure:
- Resident companies registered on the UAE mainland can do business across all emirates and access the Amazon platform with an e-commerce license.
- Companies incorporated in UAE Free Zones may enjoy 100% foreign ownership and various tax benefits, including the advantages of the Single Integrated Digital Network (SIDN) for tax optimization purposes. E-commerce licenses for trading are issued by the authorities of Dubai’s Free Zones and those in other emirates. You can apply for an e-commerce license through the Free Zone Authority (FZA) website or one of their authorized service centers.
To expand your business presence in the UAE, you may also need a virtual license, which allows you to trade in goods and services using your own website.
Wondering what business structure to register in the UAE for e-commerce and physical product deliveries? Explore Q Wealth offerings and feel free to connect with our experts for further guidance!
Final thoughts
The UAE government is very strict about enforcing the rules and regulations that aim to protect business security and integrity in the country. In 2018, the authorities shut down several unauthorized e-commerce platforms in the UAE and banned their trading activities.
In 2023, if you are a sole proprietor or a company operating in the UAE, you need to have a valid license for selling on Amazon, social media, or your website. This is a mandatory requirement according to the 2019 Electronic Media Activity Regulation Resolution. The latter regulates the online media sector in the UAE. If you sell on Amazon or any other platform without a valid UAE license, you may face fines of up to AED 500,000 as a country’s resident.
Therefore, before you start selling your products or services on Amazon in the UAE, we strongly recommend that you understand the corresponding legal requirements and seek guidance from Q Wealth seasoned experts. We will help you obtain the necessary license while complying with UAE rules and regulations.
Here are just some of the services you will enjoy when applying for assistance to Q Wealth:
- Advising you on the best legal and organizational structure for your online business in the UAE based on the needs and preferences you have. We can help you choose between different options, such as a mainland company, a free zone company, a sole proprietorship, or a freelancer visa.
- Registering your company in Dubai or any other emirate, and opening a business account for your online transactions. We can handle the entire process of obtaining a trading license, a tax registration number, and other required documents for your online business.
- Helping you get a UAE resident visa through one of the available programs, e.g., via company registration or property acquisition in the country. At Q Wealth, we will guide you through the eligibility criteria, the application process, and the benefits of obtaining a UAE resident visa.
- Offering you free consultations at all stages of collaboration with Q Wealth’s leading experts in legal, commercial, customs, and other relevant fields. We will not only answer your questions but also resolve the issues you may face and give you valuable advice on how to succeed in the online marketplace.
The Q Wealth team is here to help you start and grow your online business on Amazon in the UAE. Message us today using the provided contact info or leave your contact details and we will message or call you back in no time!
25 September 2023 