If you’re an Amazon seller in the UAE, you may have noticed the announcement communicated to the seller community earlier this month.
The communication from Amazon Seller Central (no-reply@sell.amazon.ae) starts with: “As part of Amazon seller verification and compliance review, we are reminding our selling partners of the commercial licensing requirement in the UAE.” It later explains that you, as an individual seller, may have opened your account at a time when a commercial license was not required in the UAE.
However, things have changed, and there is now a legal requirement for a commercial license to operate a business in the UAE. The letter also gives advice on consulting local authorities and offers support with commercial license registration through the Amazon Service Provider Network (SPN).
Here, you can find experienced service providers, such as Safari Star, who will be able to assist you with your commercial license registration every step of the way. It concludes by stating that Amazon may check your account from time to time to ensure that you have a valid commercial license and may ask you to provide proof.
This comes as no surprise, as similar action was taken in KSA earlier this year, where all individual accounts opened using IQAMA were closed, and sellers were advised to obtain a business license. Given the costs of setting up and maintaining a KSA non-resident trading license are astronomical, it was not an option for most.
Is it expensive to set up a commercial license in the UAE?
Luckily, this is not the case in the UAE, and setting up a commercial trading license for an e-commerce business is fast and surprisingly affordable. With more than 50 free zones available in the UAE and prices starting from as little as 5,500 AED, you can choose a free zone or mainland option that best suits your business needs.
What if I decide not to register a commercial license?
Failing to secure a valid license can lead to serious consequences. According to Amazon’s Business Solutions Agreement, compliance with all laws is mandatory. Non-compliance may result in account suspension or permanent removal from the platform. Amazon conducts regular account reviews and may request updated documentation at any time. Without the required documents, you risk losing the ability to operate on the platform. Complying with these requirements not only prevents account suspension but also enhances your business credibility. A valid business license can improve customer trust and sales performance.
How can I obtain a commercial license, and should I choose Free Zone or Mainland setup?
If you are not sure where to start, contact Safari Star and take advantage of our free business setup consultation. Our experienced team will explain the differences between Free Zone and Mainland setups and advise you on the best option for your business needs without any obligations. You can rest assured that you will be in good hands from the first call until the issuance of your commercial license and beyond.
What should I do once I have obtained my commercial license?
Once you have obtained your new commercial license, you will need to update your Amazon seller account with the new details to ensure compliance and avoid any potential issues.
Conclusion
In short, obtaining a commercial license in the UAE is now a requirement for all individual Amazon sellers. Fortunately, the process is quick and affordable, and we at Safari Star are here to guide you every step of the way. By securing your commercial license, you can stay compliant, avoid disruptions, and enhance your business credibility.
