Yes, dropshipping is very much legal in the UAE. But all you need is just a valid business license to run such a business, and that’s all! That’s the only requirement you need to fulfil, and if you already have one, you’re pretty much good to go. Still, to stay on the right side of the law, we’d advise you to just keep on reading and understand it all in a better and in-depth way.
First Things First: What Is Dropshipping?
Simply put, dropshipping is a business model wherein you sell your products online but you neither stock nor handle them.
You showcase products on your website or social media account. Once a client orders, you send that order along to your manufacturer. The manufacturer dispatches the product straight to the client.
You don’t get your hands on the product at any time. True!
Still, you are the seller, and that is a very significant point when it comes to the law in the UAE.
UAE Laws That Apply to Dropshipping
In the UAE, dropshipping is considered as part of e-commerce and online trading laws.
The UAE government gives the same recognition to online businesses as it does to the physical ones. It considers sales made through a website, Instagram, Shopify or any other outlet to be a legitimate business in all cases.
In case you sell goods online without a license, even if it is just a small scale, then you are committing an illegal act.
Do You Really Need a License for Dropshipping?
Yes. A license is mandatory. And if you don’t have it, then it is really hard or quite impossible to do a dropshipping business.
There are no shortcuts, plain and simple! Like, even if:
- You are just starting
- You are testing products
- You are selling only on social media
- You still need a valid license.
And as we hinted it away already that without a dropshipping license, it is pretty impossible to run such a business, but what else? Well, actually, running a dropshipping business without one can lead to:
- Fines
- Store shutdowns
- Payment gateway bans
- Legal issues
Can Foreigners Start Dropshipping in the UAE?
Definitely.
A foreigner can legally operate along dropshipping business in the UAE free zones. In fact, a lot of the free zones allow registration without residing UAE.
Also, if you decide to live there, you can apply for a visa through your company. And yes, it is true that you still have to get a license even if you are a foreigner, the rules are no different in this case as well.
Does the Platform Matter? (Shopify, Instagram, Amazon)
No. Well, not really, actually! The one thing to note here is that the platform does not change the law.
Whether you sell through:
- Shopify
- Amazon
- Noon
So, all in all, to run a typical dropshipping business, you still need a valid business license, that’s all! Just because a platform allows you to sell does not mean it is legally allowed in the UAE.
