I work for a private school based in Abu Dhabi. We have a number of students starting 'mini enterprises' and one example is making handmade soaps or toiletries to sell to the school community online. Are such enterprises still covered by the law in terms of licensing and the like, for them to be able to start trading? KG, Abu Dhabi
In theory, every retail enterprise should have an appropriate trade licence no matter how large or small, and the selling of any products is not permitted. It can be possible for a small business to sell under the licence of a company, but only at specific licensed events or through an online marketplace under the retailer’s online licence. The school itself could set up a company with an appropriate online retailer licence; this could then sell the items during an appropriately licensed school event, or they could set up a “mini-store” through an online marketplace that specialises in selling handmade items from local retailers. There are a few of these active in the UAE and this would be the cheapest option, as there are no overheads. This allows the school and the students to remain wholly within the law.
Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with over 20 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE.
The advice provided in our columns does not constitute legal advice and is provided for information only.
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