How to get E-commerce License in Dubai: Definitive Guide (2023)

How to get E-commerce License in Dubai

Ever heard of e-commerce and how the platform is a big boon for getting your business ablaze? Maybe, you’ve come across the term but don’t know what it entails, right?

In this guide, we’ve done the hard part and compiled an in-depth article to lift you off the ground and start your E-commerce business in Dubai effortlessly, including a step-by-step guide on how to get an E-commerce License in Dubai.

Pretty cool, right?

Off late, digital technology is being followed through all business sectors globally at a snappy rate. There is a client shift from brick-and-mortar retail to the prudent use of smartphones by consumers when it comes to E-commerce business in UAE; which fulfills all our wishes including shopping for groceries to electronics. You can purchase everything you need for your home at the comfort of your room, without straining much, and involve yourself in unnecessary movements.

That’s said, the demand for digital marketing in UAE is also skyrocketing. It is anticipated that the UAE e-trade quarter will hit $10 billion in 2018. This boom in cost is excellent as in 2014, online trading was at $2.five billion.

Increased client call for online business has pushed businesses to choose E-commerce business in UAE. This brings a big pool of possibilities for brand spanking new marketers as they have got the area to develop this quarter.

After a brief overview of E-commerce history and its snappy growth in the UAE. It’s awesome to discuss how you can start your E-commerce business in Dubai especially for startups.

Below is a step-by-step guide to help you jumpstart your online business in one week. Let’s dive in:

E-Commerce Business License in Dubai

If you’re longing for an online business setup in Dubai, we’ve listed down numerous steps that you need to execute in your company formation in Dubai.

Of course, the UAE government offers solid support to foreign investors to conduct their business amicably. In fact, you can get financial support from the UAE government and other financial institutions when directed or follow the correct protocols to acquire one.

In addition, the business environment in Dubai is super awesome to help you boost and build your presence in the marketplace. With large numbers of people globally that have inundated the UAE, it’s easy and simple enough to get your business off the ground.

Therefore, for a stunning online company formation in UAE; here are some pointers to note when you want to get an E-commerce license in Dubai.

Step 1: Select your business legal structure whether, or not to set up a Limited Liability Company, consultant workplace, and branch office among others.

Step 2: Choose the region in your commercial enterprise whether or not to set up Free Zone or Mainland Company.

Step 3: Register your company name/trade name

Step 4: Application for a business license

Step five: Set up your financial business bank account

Step 6: Arrange rent for workplace premises

The above-stated steps are direct and easy to comprehend points you need to deem fit when you desire to acquire your E-commerce License in Dubai. However, this guide will definitely delve much into the pertinent consideration concerning the E-commerce business in Dubai. Below is what you’ll learn:

Limited Liability Company vs. Foreign Branch

Limited Liability Company formation is the popular kind of company formation in Dubai and it affords flexibility and boons to organizations in terms of business.

Another common option for foreign investors is to set up a department of the foreign workplace. Branch workplace acts on behalf of other companies and offers 100% foreign ownership.

Few concerns ought to be deemed fit when putting in place department office in Dubai such as tax on income in the domestic country, sports of department workplace to be executed in Dubai and appointment of National Service Agent or nearby Sponsor in Dubai if you want to set up offices.

Also read: What to Know Before Starting a Logistics Business in Dubai

Free Zone vs. Onshore Company Formation

Amongst these two, free zone company formation is the most powerful answer for E-commerce business in UAE.

It offers whole ownership, whole income repatriation, personal, corporate, import and export tax exemption, and no regulations on currency.

One big disadvantage of free zone company formation is that they may be now no longer allowed to do business outside respective free zone. If they intend to, they ought to hire a nearby distributor for trading onshore.

Onshore business setups consequently are an excellent option for E-commerce businesses in Dubai. However, they do require a UAE country-wide to possess 51% of stocks in the company.

Online Business Name

This is the most important part of your business journey. So, you’d want to structure a name that resonates with your company’s goals and objectives.

Moreover, your trade name can as well lure clients to do business with you. Selecting a business name is a critical part of your business that needs in-depth research and guidance from a professional business setup consultant in Dubai.

That’s said, you ought to select an online business name that is easy to recall by your clients and visitors as well. This is even more vital for online businesses in Dubai due to the fact they lack a physical presence.

Also, you can use your business name as a domain name so that it might be easier for clients and new visitors searching for you to locate your business easily.

Also read: e-trader license in Dubai 

Business License

For you to start an E-commerce business in Dubai, you ought to collect a business license from DED (Department of Economic Development).

In the case of the free zone, the respective free zone authority will play the role of issuing an E-commerce license in Dubai.

However, the type of license you apply to get for your business will be determined by the nature of your business activities therein in your online business.

Lease for Office Space

It might not have crossed your thoughts to rent a work area in case you intend to conduct online business completely; however, you ought to realize that you can’t sign in without it.

Check minimal workplace area necessities from the government e.g. in Dubai minimum workplace area requirement is 200sqft.

In the case of free zone establishment, there are inexpensive options like digital or flexo-table condo alternatives. But do maintain in thoughts; acquiring visas for personnel relies upon your workplace area. More workplace area, extra visas you may reap.

Secure Online Payment

Whether you’re promoting merchandise or service online, you ought to set up a stable online fee gadget if you want to obtain secure credit score cards, debit cards,s, and PayPal bills via your website.

This can also sound high-priced for new business startups. However, you need to invest the right money and time for this business as getting it incorrect could be dangerous in your entire business image.

Also, the wide variety of providers and online fee options are growing in Dubai, you’ve got a couple of alternatives to bear in mind which one fits your commercial enterprise and falls below your budget.

Customs Duty

UAE imposes 5% of customs obligation on imported goods.

Free zones agencies are exempt from import and export taxes. This is authentic in the case whilst you are promoting your merchandise in the respective free zone most effective whether or not online or offline.

If you’ve set up an E-commerce business in the free zone and you need to conduct your online business in the UAE market, you ought to get services from the nearby distributor and import taxes can also be relevant for you.

With any form of company formation services in the UAE, it’s recommended to be seeking expert recommendation from a representative company who will assist you while getting your E-commerce License in Dubai.