E-cigarettes are gaining popularity all over the world and the United Arab Emirates is no exception to this trend. As more and more people are turning towards vaping instead of traditional cigarettes there are a lot of business opportunities in this particular segment.
However, one should not venture into a vape business in Dubai or any other part of the UAE without a proper understanding of the licensing, legal framework, and relevant compliance.
This guide will walk you through how to start a vape business in the UAE and Dubai, including obtaining an E-Cigarette License in Dubai and the UAE, securing ESMA Certification, and adhering to local laws.
Understanding the E-Cigarette Market in the UAE
Let’s identify the opportunities and threats of the E-Cigarette market in the UAE.
The UAE and Dubai in particular have several legal requirements when it comes to tobacco and products containing nicotine. In the year 2019, the UAE removed the ban on e-cigarettes to open a vast market for vaping products.
Nevertheless, those operating and trading in the sector of e-cigarettes, vape juices, and other accessories require certain licenses and approvals in specific jurisdictions.
How to Start a Vape Business in the UAE and Dubai?
If you are looking to enter the vaping industry in the UAE, follow these steps:
The first step is to select a business structure that best suits its operations or mode of operation.
To obtain an e-cigarette license in Dubai, you should first determine the jurisdiction and structure of the business.
- Mainland Company: This license permits the trading of goods and services both locally in UAE and internationally but they need a local service agent.
- A Free Zone Company: Having a Free Zone company allows full foreign ownership and exemption from taxes – but in most cases, exportation of products without a distributor is prohibited within the UAE.
The second step is to acquire an e-cigarette trading license.
To produce electronic cigarettes in Dubai or anywhere in the UAE, one has to obtain an E-cigarette Trading License from the Dubai DED or the Free Zone in which one intends to operate. The key requirements include:
- Choosing the right business name according to the regulations of the UAE.
- Presenting a business plan that reflects details of the products to be developed and supplied to the market.
- And registering the business with the Dubai Chamber of Commerce.
The third step is to get an ESMA Certification
The use of e-cigarettes in the UAE is governed by the Emirates Authority for Standardization and Metrology (ESMA). Companies are required to acquire an ESMA Certification as a way of ascertaining that their products are fit to be sold in the UAE market without compromising consumers’ health. The process involves:
- Submitting product samples for testing.
- Ensuring compliance with UAE Standard 19204.
- One of the initial important steps undertaken is to register with the ECAS (Emirates Conformity Assessment Scheme).
The fourth one is the Import and Distribution Approvals
While importing e-cigarettes, the following permissions are required from the following:
- Permission from the Dubai Municipality for labeling and packaging of products.
- Approval from the Federal Tax Authority (FTA), since e-cigarettes are considered to be subjected to excise tax in the UAE.
- Customs Clearance is required to make sure that the documentation mechanism is intact to enhance the efficacy of the importation procedures.
The fifth and final step is to establish a physical or online store for the company or brand.
If you plan to establish a physical shop to sell vapes and related products, it has to be compliant with zoning rules and sanitary standards in accordance with the laws. Also, to establish an online vape store, is it crucial to obtain an e-commerce license, as well as adhere to the UAE’s cyber laws and regulations.
Overwhelmed By ESMA E-Cigarette Business Registration Steps? You Need A Business Setup Consultants In Dubai
Applying for an e-cigarette license in Dubai and the UAE could be a challenging task. Business setup consultants in Dubai cover company formation services, licenses for trading, ESMA certificates, and other requirements to run a vape business in the UAE.
These professionals play a significant role in facilitating the approval process to ensure that they effectively fast-track the setting up process. Regardless of what company formation you need – Free Zone or Mainland – using business consultants in Dubai allows you to save time and avoid crucial blunders.
Cost of Getting an E-Cigarette License in Dubai and the UAE
The cost of obtaining an E-cigarette Trading License varies depending on business structure, location, and operational requirements. Some estimated costs include:
- Trade License: AED 15,000 – AED 30,000
- ESMA Certification: AED 10,000 – AED 20,000 (depending on product testing)
- Customs and Import Fees: Varies based on product category
Legal Compliance and Restrictions
- Selling to individuals under 18 is strictly prohibited.
- E-cigarettes must comply with labeling and nicotine content regulations.
- Advertising and promotional activities are regulated by UAE law.
Conclusion
The UAE provides a promising market for vape entrepreneurs, but strict regulations must be followed. By securing an E-cigarette license in Dubai and the UAE, obtaining ESMA Certification, and complying with trade and health laws, businesses can successfully enter this thriving industry.
If you are looking to start a vape business in Dubai or across the UAE – make the first move by connecting with a business setup consultant in Dubai. Company formation service providers such as – Corp Creators offer you free consultation and so much more!
At Corp Creators – we ensure you follow the correct procedures to avoid legal complications and maximize your success in this rapidly growing market. Call us now!
