In 2019, Dubai legalized e-cigarettes, turning it into a thriving industry. By 2023, the sector had already generated $59.38 million in revenue, and the growth is predicted to continue at a Compound Annual Growth Rate (CAGR) of 9.41% until 2027.
The use of e-cigarettes, also known as vaping, has been on the rise, with people adopting them as an alternative to traditional smoking or for smoking cessation. This rising demand has spurred new businesses to seek e-cigarette licenses to tap into this booming market.
To make your mark in the Dubai vaping industry, you need a solid grasp of the compliance requirements and regulations associated with e-cigarette trading. This comprehensive guide will lead you through the process of obtaining an e-cigarette license in Dubai, shedding light on the essential steps and requirements you should be familiar with. Your journey into the Dubai vaping business starts here.
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E-Cigarette License Registration: The Key to Starting Your Vaping Business
Launching an e-cigarette business requires obtaining an E-Cigarette and Accessory Trade License. In the UAE, this license is provided by the Emirates Authority for Standardization and Metrology (ESMA). Once you’re licensed by ESMA, you have the green light to sell e-cigarettes and accessories anywhere without needing additional approvals.
Getting Your E-Cigarette Commercial Trading License
The initial step involves applying for the e-cigarette commercial trading license. This essential license is granted by the Department of Economic Development (DED) or the Dubai Health Authority if you’re operating in the Mainland. It’s a prerequisite for seeking ESMA approval.
If your plan is to launch your vape business in a free zone, keep in mind that the application process will be overseen by the free zone authorities, not DED.
But whether you’re in the Mainland or a free zone, company setup is here to streamline the process and provide assistance in both scenarios.
How to Start a Tobacco Trading or Electronic Cigarette Trading Business in Dubai?
In Dubai, ESMA approval is a non-negotiable step for legitimizing your e-cigarette business. It’s the key to demonstrating that your products comply with UAE government standards and regulations. This certification assures safety and quality, both for your business and your customers.
Operating without ESMA approval not only opens your business to legal consequences but also jeopardizes consumer health and safety. To guide you through the process, here are the precise steps to obtain your e-cigarette license in Dubai.
1. Certificate of Free Sales
Your journey begins with obtaining the Certificate of Free Sales, issued by health authorities or relevant government bodies in your product’s country of origin. This certificate serves as evidence that your products align with international quality and safety standards.
2. License from the Dubai Municipality
Before seeking ESMA approval, securing a license from the Dubai Municipality (DM) is a must. This step not only legalizes your business operations but also signifies your commitment to conducting business within the bounds of the law.
3. E-Form
Submission Once armed with the required certificate and license, your next move is submitting an e-form for ESMA approval. This form necessitates providing all the essential information about your product and business, setting the stage for official recognition.
4. Required Documents Preparation
Now, it’s time to gather the necessary documents, which should include:
- A copy of the Certificate of Free Sales.
- A copy of your trade license.
- A Product Analysis Report detailing vital product information like ingredients and physical characteristics.
- A laboratory research report on your product.
- Your company registration certificate.
5. Obtaining the Certificate
Once you’ve submitted the e-form along with the required documents, ESMA will initiate the process of preparing a consumer product registration report. They’ll keep you updated on the report’s status, providing consistent feedback. When the report is finalized, you’ll receive your certificate, marking a significant milestone in your e-cigarette business journey.
If You Want to Get an E-cigarette License in Dubai and the UAE! Send Us Your Inquiry
ESMA E-Cigarette Business Registration Requirements
Registering your e-cigarette business with ESMA involves strict adherence to UAE guidelines to ensure product safety and quality. ESMA has set forth comprehensive requirements to maintain high standards. Here’s what you need:
- Must hold a valid commercial license.
- Trademark registration with UAE authorities is a must.
- Manufacturing plants should adhere to the QMS Manual, following minimum specifications (ISO 9001).
- Obtain the Name Mark Certificate, ECAS (Emirates Conformity Assessment Scheme).
- A laboratory test report in the UAE, conducted by an ISO 17025-certified laboratory (e.g., S GSO 597) for specified materials mentioned in clause 4.1.11, valid for up to one year.
- IEC CB Test Reports and Certificates as per standard No. UAE S. GSO IEC 60335-1.
- ISO 9001:2015 Certificate from the manufacturer.
Additionally, access to the following materials is necessary:
- Ethylene Glycol
- Diethyl Glycol
- Formaldehyde
- Nicotine composition
- Caffeine
- Taurine
- Acetone
Other requirements include:
- Data on dosage and nicotine consumption under standard conditions.
- Validation of product label’s expiration date.
- Submission of a manufacturer’s risk mitigation report.
- Analysis of heavy metal levels (e.g., lead, cadmium, mercury, chromium, nickel, iron, fluoride, tin).
- Verification of distributor ownership (for traders).
- Compilation of ingredient lists with percentages, trade names, functionalities, emissions, toxicity, and supporting literature data.
- Device battery test report as per UAE S. GSO IEC 62133-1 and 2 and GSO IEC 60086-4 (if the device has batteries).
- Battery Charger Test Report as per IEC 60335-2-29 from an accredited laboratory (if applicable).
- Each flavor profile, framework, or nicotine intensity requires an individual test report.
- Include product’s score label images.
- Provide user guides in both English and Arabic.
- Present the production cycle profile with a flowchart.
- Furnish a complete test report during the renewal process.
- Affirm manufacturing claims about the exclusion of restricted materials detailed in UAE standards section 4.1.11.
- Notify conformity with the GSO ISO 8317 UAE standard, ensuring child-safe packaging.
Cost of starting a vape business in Dubai
Starting a vape business in Dubai comes with an initial investment that covers registration fees, licensing, certifications, and various setup expenses. The cost typically ranges from AED 15,000 to AED 25,000. The exact amount depends on factors like the number of visas you need, additional government approvals, and your business location.
While the initial investment may seem significant, it’s essential to consider it as a long-term investment in your business’s growth. The credibility and reputation that come with legal compliance will ultimately outweigh the upfront expenses, making it a worthwhile venture.
Essential Documents for Running Your E-Cigarette Business in Dubai
To operate your e-cigarette business in Dubai, you’ll need to have these crucial documents in order:
- Trade License issued by the Dubai Municipality
- ESMA Certification
- Certificate of Free Sales
- Detailed Product Information, including ingredient specifics
- Passport copies of business owners and partners
- A lease agreement for your business premises
- NOC (No Objection Certificate) from your landlord
Advantages of Launching a Vape Business in the UAE
Starting a vape business in Dubai brings a host of benefits:
a). Strong Market Demand:
With a notable focus on smoking cessation, the demand for vape products in Dubai is on the rise, making it a lucrative market for entrepreneurs.
b). Rapid Market Growth:
The vaping industry in Dubai is still relatively young and growing at an impressive pace. Despite regulations, the business setup process is efficient and straightforward.
c). 100% Foreign Ownership:
The UAE offers the advantage of 100% foreign ownership, a significant draw for international entrepreneurs seeking to establish their businesses with fewer restrictions.
d). Favorable Taxation:
Dubai boasts a corporate tax rate of just 9%, and personal income tax remains at 0%, providing tax benefits that can positively impact your business’s financial performance.
Company Setup: Your Partner for a Smooth Vaping Business Setup in Dubai
Company Setup Consultants is here to simplify the legal procedures for establishing your vaping business in Dubai. We offer support in acquiring both ESMA and trade licenses from the Dubai Municipality. Our end-to-end services extend to helping you efficiently manage your business while ensuring compliance with Dubai’s relevant authorities.
For further information and assistance on How to Get an E-cigarette License in Dubai and the UAE , speak with our experienced consultants. Book your FREE consultation today at +971582595164, +97145187213 or drop us a line on info@companysetup.ae