Our everyday lives have become more reliant on online buying nowadays. As a result, the way we acquire products has evolved dramatically in the last several years.
Dubai is no longer behind in this race, and the e-commerce sector is ever-growing in the emirate.
So if you wish to start your dream of opening an e-commerce business in an overseas location, you must know about the business license.
Go on and read the blog to get knowledge about getting an e-commerce license in Dubai.
A Short Introduction to E-commerce Business in Dubai
Given the increasing usage of smartphones, the easy availability of internet connectivity has aided the e-commerce industry's expansion. As a result, online shopping for apparel, furniture, and other items is prevalent. Therefore, it should come as no surprise that the e-commerce business is thriving in every part of the globe.
If you want to start an e-commerce firm in Dubai, you'll have to go through various steps, from choosing a website design to getting your license approved.
The Steps to Get an E-commerce License in Dubai
You must follow the steps outlined below to get an e-commerce license.
1. Determine the Best Company Structure
Choosing the legal structure for your firm is the first step in obtaining an e-commerce license in Dubai. Simply said, whether to form an LLC (Limited Liability Company), a one-person business, a branch of a parent company, branch offices, and so on. LLC formation and branch offices are the most frequent in Dubai since they provide a variety of advantages.
2. Choose the Appropriate Destination
The destination refers to the region where you wish to receive your license, not the location where you want to open a store or office. Dubai has two areas: (1) the Free Zone and (2) the Mainland. If you are eager to open a company in the mainland, read about the 8 easy steps to start a company in Dubai mainland.
You have total authority over your business in a free zone. You'll need a local sponsor with at least 51% ownership of the firm on the mainland, and your contribution will be the rest. Similarly, each region has its own set of advantages and disadvantages. You must evaluate all elements before deciding where you want to establish your internet business.
3. Get a Trade Name for Your Business
Because your business has no physical location, create a name that people will remember. The business name may be used as a domain name to make it easier to discover your company online. Make sure your domain name does not conflict with another company's name since this might lead to legal complications.
4. Apply for the Business License
Once you've chosen a location, you may apply for an e-commerce license. The Department of Economic Development provides this license; thus, you must first contact them. A corporation based on the mainland must pay the DED of roughly AED 10,000 for trade name registration, first authorization, and license allocation. If you want to develop in a free zone, you'll also need a license from the applicable free zone authorities. The size of your internet business determines the type of license you acquire.
5. Obtain the Initial Approval
A NOC from the authority to establish your e-commerce firm in Dubai is an Initial Approval Certificate. It is only valid for six months and cannot be extended. While submitting applications for trade name support, one might request an initial certificate of approval.
6. Draft the MOA
You can work with the customer to write an Association Memorandum (MOA) and submit it to the DED. This step is required if you decide to locate your firm on the mainland. Read more about mainland company formation in the UAE. Any law firm may form the memorandum, and it must include the particular conditions and ownership percentages among all partners. This phase can be skipped by companies looking to establish themselves in a free zone.
7. Get a Virtual Office
The next step will be to establish a visible office in Dubai. The Dubai government has made it obligatory for a company to be officially recognized as a legal organization.
8. The License's Final Authorization
Depending on the jurisdiction, you will receive a business license between 1-7 days after completing all preceding steps.
9. Requirements for Import/Export
To receive an importer's code, your company must be registered with one of the ports and customs administrations. Imported items are subject to 5% customs taxes in the UAE. Because companies entering the free zone must promote their products/services within the free area, there will be no import tariffs. If you are interested to open an import-export business, then read about import and export licenses in Dubai.
10. Open a Bank Account
Finally, you can open a corporate bank account when you have successfully applied for an e-commerce trade license and established your firm. Because the registration procedure is quick and straightforward, you should choose which bank best meets your needs.
The Cost of E-commerce License in Dubai
When you plan to obtain an e-commerce license, the most frequent question is how much an E-commerce License is in Dubai. Obtaining an e-commerce license varies depending on the location and kind of business.
The cost begins at AED 15000to 50000, excluding any visa fees.
The e-commerce business will generate more revenue for the economy in the future. So, if you're ready to take the plunge and move your small business or project to the cloud, an e-commerce firm could be an excellent option to explore.
Business Setup Worldwide is here to help you get your e-commerce license for the business. We offer assistance to all of your questions on how to get an e-commerce license in the UAE. In addition, we will assist you in totally establishing your firm using web platforms. Contact us for any further queries.
1. What are the benefits of having an e-commerce license in Dubai?
• There's no inventory.
• More satisfied customers
• Expandable Model of Function
2. Is Dubai lucrative for e-commerce?
The e-commerce sector grows 23% each year in Dubai.
3. What are some used online shopping sites in Dubai?
4. What are the business advantages of having an e-commerce license?
• 100% foreign firm ownership
• No corporation or income taxes.
• Capital and earnings are fully repatriated.
5. Which department is responsible for issuing the e-commerce license?
Department of Economic Development (DED).