Being in the digital era, a large number of people in the UAE are shifting from traditional shopping to online purchases as it is more convenient. Due to the change in customers’ behavior, all businesses and entrepreneurs also have to tailor their business activities accordingly. This is why many companies are setting up their e-commerce business in Dubai, also known as an online business. So, you only need to get an online business license to kickstart your digital services.
Business owners enjoy opening up their companies in Dubai for the benefits like tax exemption, government support, growth-ensuring business structure, unlimited resource accessibility, and business opportunities. So, if you are waiting for the right time to start your online venture, this is your sign. You can team up with Vigor business setup consultants who will help you throughout the registration company formation process.
Getting your e-commerce license is simple if you do the steps right. Here in this blog, we have covered everything you need to know about registration, costs, and requirements.
Types of online business licenses in Dubai
You will need to determine which type of license you need. Depending on the nature of your business, there are different types of licenses, you can apply for.
Sales tax license
If you are running a business that involves selling products, you will need to obtain a sales tax license. This will allow you to collect sales tax from customers and remit it to the appropriate government agency.
This license is only for GCC and middle east nationals who are currently residing in the UAE. This license is only for one owner and you do not need a physical office address for this license.
Digital company license
This virtual online business license allows you to offer your services online. Services like advertising, computer programming, and related to social media and designing.
All UAE residents who are not local can apply for this license. A Portal license is for online businesses where you link buyers with sellers. You can list websites that sell either services or any kind of products.
What are the documents required for an online business license?
When registering for an online business license, there are a few different documents that you will need to provide. Depending on the type of business license you are applying for, the documents required may vary. Generally, you will need to provide
- Proof of your identity, such as a copy of your passport, or other government-issued identification.
- An emirates ID of local UAE nationals sponsors
- You may also need to submit proof of your business address, such as a utility bill or lease tenancy contract with EJARI attestation for office space.
- NOC (no objection certificate) for having shareholders who are currently working in any UAE incorporation.
- An application form for an online trade license from DED (the department of economic development)
- Memorandum of association (MOA) from public services notary (attested) for partner and investor agreements.
If you are new to such business complexities and are having a hard time understanding the legal formalities, our consultants can guide you and make sure all your documents are completed and submitted without any errors.
What is the application process for an online business license in Dubai?
Obtaining an online business license in Dubai can be a complex process, but it is possible to navigate it with the right knowledge and resources.
Step 1: Choose your company name
The first and foremost step before setting up your company is to choose such trade name for your business that is neither offensive nor already taken. The UAE business rules are strict and straightforward and you have to abide by them. So, choose a name for your company that is unique and easy for your customers to remember. Having a hard-to-pronounce name can affect your business activity.
Step 2: Either choose a free zone or mainland location for your business
Dubai offers mainly two types of locations to all business entrepreneurs: mainland and free zone. Both have their own perks and limitations. If you open your business on the mainland, you get access to reach to local as well as international marketplaces. On the other side, setting up a business in a free zone gives to 100% ownership of your company, complete exemption from income tax, 100% repatriation on profits, and no corporate or capital tax. Based on your company type, you have to choose the right region that suits your business.
Step 3: Apply for an e-commerce license
Now you have chosen the location of your company. It is a type of business license application. If you want to open a mainland company like a limited liability company (LLC), you need to contact DED. DED is the authority that regulates all business licenses. If you are going with free zones, you can directly contact the free zone of your choice. They will guide you with all the further steps and documentation.
Step 4: Visas application
After submitting the application, you are eligible for visas. You can apply for your family and staff visas as well. The UAE does not offer permanent residency. Rather there are 3-year residency visas. Our consultation experts can offer their assistance if you are having any questions or need information regarding anything.
Step 5: Open your bank account
After visa application approval, you need to apply for a business bank account. You cannot operate your e-commerce business activities if you don’t have a business account. It is also compulsory for all payment gateway and investment transactions.
What is the cost of an online Dubai business license?
The type of your business, the number of employees, the location, and the offices, are all factors that affect the cost of Dubai’s e-commerce business. If you are opening your business in Dubai mainland, then the cost will somewhere between AED 3000 to AED 30000.
But free zone business options are comparatively more cost-efficient and best for new entrepreneurs. If you want to know the exact price packages, contact our business consultants now. They can provide you with the current quote for acquiring an online business license in Dubai, UAE.
Contact Vigor Business Setup
If you are still confused about online businesses and license requirements, contact us now to speak with our consulting individuals. We already have helped many entrepreneurs like you kickstart their businesses in the rising UAE market. We will help you understand all the processes and regulations that you must know before your go for Dubai online business license.