Dubai is a known business heart for investors and entrepreneurs. The emirate consists of more than 40 free zones.
Now adding to this, the government has launched a new free trade zone solely for e-commerce in Dubai. As a result, Dubai CommerCity is the Middle East, Africa, and South Asia's (MEASA) first specialized e-commerce free zone. Learn more about e-commerce license in Dubai to open an e-commerce business.
It is a 3.2 billion AED investment distributed over 2.1 million square feet. The location results from a partnership between two state-owned enterprises: Dubai Airport Free Zone Authority (DAFZA) and property firm Wasl.
So are you willing to open a business in Dubai free zone e-commerce area? Then this blog will assist you with information regarding the same.
Businesses Plans in Dubai Economic Free zone- CommerCity
CommerCity is a strategic initiative by the Dubai government and is made up of the three specific clusters for innovative business approaches, which are as follows:
The business cluster consists of a plan, namely ‘Leadership in Energy and Environmental Design (LEED)’. It has 12 buildings spread over 175,000 sqm. Customers are encouraged to take an active attitude to business by the area's contemporary amenities and landscapes in the interior and the external regions.
The logistic cluster comprises 105 logistics units and is spread over 54000 sqm. In addition, the Logistics Cluster includes several specific fulfillment options for e-commerce companies. The rooftop PVC solar panels on this cluster generate solar energy.
The social cluster aims to build a regional headquarters for the e-commerce companies in Dubai. In addition, this cluster consists of art galleries, cafes and restaurants, and various facilities. Learn more about how to set a cafeteria business in Dubai.
All You Need to Know about Licenses in CommerCity- E-commerce Free zone Dubai
There are some specific licenses available in CommerCity for the particular businesses, which are mentioned below:
- Commercial License
- Service License
- Ecommerce License
- Trade License
Advantages of Setting up a Business in CommerCity
CommerCity also comes with various benefits in the business. Let us have a look into it:
Free Zone Advantages
Being a fee zone, CommerCity offers all the benefits a free zone provides in Dubai, which are as follows:
- 100% foreign ownership
- No corporate or income tax
- 100% repatriation and capital advantages
- A cost-effective business setup
- Advantageous Position
CommerCity is close to Dubai International Airport and has excellent local and national highway access.
CommerCity offers various logistic services, and the infrastructure is well connected to sea and land ports, allowing for efficient e-commerce distribution and delivery.
Open to Business with the Regional Markets
CommerCity provides Dubai and the UAE with a unique entry to a potential worldwide economic sector. Learn how economic growth impacts the business in Dubai. In addition, CommerCity gives e-commerce players in the MENA and South Asia areas easy access.
How to Set Up a Business in Dubai CommerCity?
Forming any business requires going through a lengthy procedure. Similarly, if you want to start your business in CommerCity, you have to go through a specific process which is as follows:
1. Finalize the Legal Entity
Determine the legal entity according to your business type. There are two types of companies available in Dubai CommerCity:
- Branch office
- Limited Liability Company
2. Select a Trade Name
In the next stage, choose a trading name for your business in the Department of Economic Development (DED). There are specific regulations regarding the trade name, and you must follow those rules. Such restrictions include not violating the public morals of the country, or the name you choose for your business must not be registered earlier etc.
3. Apply for a Business License
You have to apply for it in the DED to get your trade license. Then, choose your license according to the business activity you will proceed with.
4. Obtain an Office Space
Get your office space in Dubai CommerCity. You may either buy or lease office space, and the size of your office is determined by the number of workers and the nature of your firm.
5. Get the Initial Approval
Next, get the initial approval from the respective government authority and the documents news for the same are mentioned below:
- Application Form
- Copy of your Business plan
- Registration certificate
- NOC from the current sponsor
- Passport copies of the shareholders of the company
- Specimen signature of the shareholders
- Financial reports
6. Register Your Business
Clear the registration fees and license fee after getting the initial approval. The cost is determined by the type of license needed. After that, you must submit:
- Completed application for registration
- Memorandum and Articles of Association (MOA and AOA)
- Board Resolution appointing Manager/Director
- Power of Attorney given to Manager/Director
- Passport-size photo of Manager/Director
- Share capital information
7. Get Your Business License
Once you register your business, the authority will prepare your lease agreement. After that, your trade license will be issued by the governmental administration, and you will be able to start your business activity.
You know by now that opening a business is filled with lots of nuisance. However, this process can be hassle-free if you contact any business consultant at Business Setup Worldwide.
We are here to help you with our services. The business consultants are all experienced and can provide you with different services in your business incorporation process.
So do not delay furthermore and contact us today; we’d be glad to assist you.
1. Which business will be the most profitable in Dubai CommerCity?
2. What are the registration options available in Dubai CommerCity?
● Branch of an existing entity
● Incorporation of a new DCC limited liability company (DCC-LLC).
3. When was the Dubai CommerCity established?
The project was launched in 2017, and the first phase is to be completed in 2023.
4. What is the expected growth in CommerCity?
5. How much capital was invested in the first phase of the Dubai CommerCity?
AED 3.2 billion.