Do we need a license to operate an e-commerce platform in the UAE?

Hello,

I'm Sakina Dickenwala from MBC Legal.

Dear Questioner,

We can assist you in getting an e-commerce license at the lowest price.

Regarding your query about the e-commerce business in the UAE allowing platform aggregators to collect money and keep it in an escrow account on behalf of the seller, we need more clarification about your business and its cycle.

We are a registered corporate service provider for the mainland and all free zones in the UAE.

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Dear Questioner,

Thank you for reaching out with your questions regarding the requirements for operating an e-commerce platform in the UAE.

- E-commerce License:

Yes, you do need a license to perform e-commerce activities in the UAE. The specific type of license depends on the nature of your business and where you plan to operate.

For instance, you may need a mainland e-commerce license issued by the Department of Economic Development (DED) or a free zone e-commerce license if you are operating within a designated free zone.

- Escrow Accounts for Platform Aggregators:

E-commerce businesses in the UAE can allow platform aggregators to collect payments on behalf of sellers and hold them in an escrow account.

However, this requires compliance with specific regulations set by the UAE Central Bank and other relevant authorities.

It is essential to ensure that your business model adheres to these legal requirements to avoid any legal complications.

I would be happy to assist you with the detailed steps and legal advice necessary to establish and operate your e-commerce platform in compliance with UAE laws.

Please feel free to reach out to me through WhatsApp or phone at [------], or email me at [------] to discuss your needs further.

Yes, you need ecommerce license to sell goods through platform or social media.

Please contact me at [------] for detailed discussion and assistance.

Dear Questioner,

In the United Arab Emirates (UAE), to operate an e-commerce platform, you typically do not need a specific license for e-commerce activities.

However, there are certain regulations and requirements that businesses engaging in e-commerce must comply with.

These may include obtaining a trade license from the Department of Economic Development in the respective emirate where the business is based, registering with the Federal Tax Authority for Value Added Tax (VAT) if applicable, and ensuring compliance with consumer protection laws.

It is essential to consult with legal advisors or relevant authorities in the UAE to understand the specific licensing requirements based on the nature of your e-commerce business and the products or services you intend to offer.

- Does E-Commerce business in UAE allow the Platform Aggregators to collect money and keep it in an Escrow Account on behalf of the seller?

In the UAE, e-commerce businesses can utilize platform aggregators to collect payments on behalf of sellers and hold these funds in escrow accounts.

This practice is common in various e-commerce platforms and marketplaces where intermediaries facilitate transactions between buyers and sellers.

Platform aggregators act as intermediaries by collecting payments from customers, holding these funds securely in escrow accounts, and releasing them to sellers once certain conditions are met, such as successful delivery of goods or services.

This mechanism helps build trust between buyers and sellers by ensuring that payments are only released when transactions are completed satisfactorily.

E-commerce businesses operating in the UAE should adhere to relevant regulations governing financial transactions, data security, and consumer protection when utilizing platform aggregators for payment collection and escrow services.