The growing popularity of smartphones, along with easy access to the internet, has aided in the rise of the e-commerce business. Clothing, furniture, and other items may all be purchased online these days. It should come as no surprise that the e-commerce industry is flourishing all around the globe. E-commerce makes things easier for individuals since it saves time and allows anybody with internet connection to purchase for anything online with a single click of a button. Your firm will be able to reach a bigger audience with it.
The market in Dubai is as profitable as any other. By the end of 2018, the e-commerce business in the UAE is expected to be worth $10 billion (Dh36.7 billion). However, if you want to start an e-commerce business in Dubai, you must go through a series of steps, starting with choosing on a website style and ending with obtaining your license granted.
It's simple to set up an e-commerce business in Dubai, but you can't ignore the rules and regulations. The authorities in Dubai do not allow anyone to open an e-commerce site and begin selling goods. You must apply for an e-commerce license if you wish to start an online business in Dubai. If you do not have a license for your business, it is not deemed lawful. When applying for this license, you must follow a certain protocol.
How to Obtain an ECommerce License in Dubai?
As a result of factors such as rising internet usage, a favorable tax environment, and so on, operating an e-commerce business in the UAE may be beneficial. To get an e-commerce license in Dubai, you must first complete the following steps:
1.Decide on your company's legal structure.
The first stage in acquiring an ecommerce license in Dubai is to determine your company's legal structure. The creation of limited liability companies (LLCs) and branch offices are the most frequent in Dubai since they provide a number of benefits.
2.Select a Location
The location refers to the location from whence you will obtain your license, not the site where you will open a store or office. There are two sorts of zones in Dubai: (1) the Free Zone and (2) the Mainland. In a free zone, you have complete control over your business. You must have a local sponsor who owns at least 51 percent of the firm, with the remainder being your share in the case of main land. Similarly, both zones have their own set of benefits and drawbacks. You must weigh all of the aspects before deciding where to start your internet business.
3.Register a Trade Name
Since your company has no physical location, use a name that people will remember quickly. People will be able to readily discover your firm online if you utilize the trade name as your domain name. Make sure your domain name does not sound similar to that of another firm, since this might lead to legal issues.
4.Submit an application for a license
After you've decided on a location, you'll need to get an e-commerce license. Because this license is issued by the Department of Economic Development, it is critical to contact them first. For a corporation based on the mainland, the DED charges roughly AED 10,000 for trade name registration, first approval, and license issue. If you want to open a business in a free zone, you must first get a license from the applicable free zone authorities. The sort of license you will receive is determined on the nature of your internet company.
5.Submit an application for an Initial Approval Certificate.
A NOC from the authority to establish an e-commerce firm in Dubai is known as an Initial Approval Certificate. It is only valid for 6 months and cannot be renewed. When filing a trade name approval application, one can also request for an initial approval certificate.
6.Write a Memorandum of Agreement and a Local Service Agent Agreement.
You must write and submit a Memorandum of Association (MOA) with the sponsor to the DED. If you want your firm to be located on the mainland, you must complete this step. Any law firm can type the memorandum, which must include the particular arrangements and ownership percentages for all partners. This can be skipped by those businesses that are establishing themselves in a free zone.
7.Open an actual office in Dubai.
The next stage would be to open an actual office in Dubai, since the Dubai authorities have made it necessary for a firm to have a physical location in order to be considered a legal organization.
8.Approval of the License in Its Final Form
You will receive a business license between 1-7 days after completing all of the aforementioned steps, depending on the government.
9.Requirements for Import/Export
Your company must be registered with one of the ports and customs administrations to get an importer's code. Imported items are subject to a 5% customs levy in the UAE. Companies operating within a free zone will not be subject to import duties since they must sell their goods or services within the free zone.
10. Establishing a Business Bank Account
After successfully applied for an e-commerce trade license and established your firm, you can open a corporate bank account. Because the application procedure is short and easy, all you have to do now is decide which bank best meets your needs.
Ecommerce license UAE
The cost of an ecommerce license Dubai is determined by a number of variables. These factors include the size of the company, the number of visas requested, if office space is required as part of the package, and whether the company will be located in a free zone or on the mainland. To give you an idea of the price, you can expect to pay between AED 15,000 and AED 50,000, depending on your needs.
Setting up your business in a free zone is typically the greatest way to keep your startup costs low.
Advantages of e commerce license in Dubai
- Repatriation of capital and income autonomy
- There are no monetary limits.
- In the free zones, there is 100 percent foreign ownership.
- 0% corporate and household income tax
- Operating costs are low.
- There are no import taxes for e-commerce licenses.
- A three-year resident visa has been approved.
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