Online shopping has become an inseparable part of our daily life after the advent of the internet. The Covid-19 pandemic has fastened the scope of the same.
So gradually, it reflects on the e-commerce business industry.
Since the pandemic in the e-commerce sector, UAE has been excelling with its digital availability.
If you are willing to open an e-commerce business, know about the market potential and get yourself a trade license.
Go on and read the blog to know more about the opportunities that this industry has to offer.
Online Opportunities in the E-commerce Sector in the UAE
Three out of every four UAE customers shop online, with the e-commerce sector valued at $5 billion by 2021.
By seeing this number, you can assume the growing e-commerce industry in the emirates.
Not only this, there are several scopes waiting for you in the UAE to excel in the e-commerce business if you wish to start one.
Let’s have a look at the online opportunities:
First, form a digital marketing company
In this region of the world, digital marketing is a big business. The UAE has a higher percentage of active internet users (80%) than the European average (66 per cent). This opens up more opportunities for internet marketers and their customers.
Additionally, starting a digital marketing company is simple and quick if you have the right skills. A company license, a website, and a workspace are required. After establishing a technique, you'll only need to spend more money.
While keeping your overhead low, you may steadily grow your client base and increase your recurring income.
Create or pay someone to create a food and grocery delivery app for you.
The online meal delivery market has grown in recent years. The global market will surpass $100 billion this year, and given the coronavirus outbreak and the resulting surge in demand, it may end up much beyond initial forecasts.
You may design and build the app if you have coding and programming experience. If not, several firms in the UAE can develop and handle your app for a fee.
Learn more about the grocery license in Dubai.
Make a job-hunting website
Recruiters are constantly in great demand in Dubai. Thousands of businesses in the emirate are striving to grow, and they all want new personnel to help them achieve their objectives.
Furthermore, the job market nowadays is almost exclusively online.
Naturally, in such a booming economy, recruitment-related enterprises may be a little crowded in such a thriving economy. Those who can carve themselves a niche, on the other hand, will have plenty of options.
Developing a mechanism for booking activities online
Around 16 million people visited Dubai in 2019, with the emirate's authorities aiming for 25 million tourists by 2025.
To summarize, there has never been a better time to get into the tourist sector in Dubai. An effective way to do so is to run an online booking platform.
You may sell tickets to local attractions, skydiving, hotel, restaurants, and bar packages. You will generally receive a commission for every successful booking.
Get Your E-commerce License in the UAE
The stages of how to obtain an e-commerce license are as follows:
1. Finalize the Legal Framework of the Company
Decide the legal structure for your company, whether you want to open a limited liability company (LLC), a branch office or a one-person enterprise.
2. Select the Location
Choose a suitable business location for the company. There are two types of zones in the UAE: mainland and free zone. Both places have their advantages to offer. Find details about UAE mainland company formation.
3. Choose a Trade Name
Select a name for your business. The UAE has many restrictions when it comes to selecting the trade name. For example, make sure your domain name does not conflict with another company's name since this might lead to legal complications.
4. Apply for the License
If you open your business in the UAE mainland, issue the license to the Department of Economic Development (DED). On the other hand, there are respective free zone authorities in the UAE where you have to apply for the license. Learn more about the e-commerce license in Dubai if you wish to open one in Dubai.
5. Request a Certificate of Initial Approval
A NOC from the authority to establish your e-commerce firm in Dubai is a Certificate of Initial Approval (COIA). It is valid for six months only and cannot be extended. While filing applications for support of their trade name, one might request an initial certificate of approval.
6. Create an MOA
This step is solely for the UAE mainland business. First, draft the Memorandum of Association (MOA) and submit it to the DED.
7. Rent an Office
Get your company a physical existence. Rent an office according to the requirement of your business.
8. Obtain the Business License
Once you complete the stages mentioned above, you will get the business license.
9. Requirements for Import/Export
To receive an importer's code, your organization must be registered with one of the ports and customs administrations. Imported items are subject to 5% customs taxes in the UAE. However, because companies entering the free zone must promote their products/services within the free area, there will be no import tariffs.
10. Open a Bank Account
Lastly, create a bank account for your company for future transactions. Select the bank that suits your needs.
Advantages of Having an E-commerce License in UAE
Owning an e-commerce business in the UAE with a business license comes with various benefits. Here are some of those:
- 100% free zone ownership on your business
- Repatriation of revenue and capital autonomy
- 0 per cent corporate and personal taxes
- No currency limitations
- Low operating costs
- There are no taxes on e-commerce licenses.
- Approval of a three-year resident visa.
Now that you know the process of obtaining the e-commerce license, it becomes complicated for a foreign entrepreneur or business investor; it becomes tricky to go through the process all by him/her.
Business Setup Worldwide is here to assist you in the process.
Take help from our professionals. Contact us anytime for any further enquiries.
1. How long does it take t get an e-commerce business license in the UAE?
Within a week or two.
2. How much does it cost to get an e-commerce license in the UAE?
AED 8050 excluding other charges.
3. What are the emerging business opportunities in the e-commerce sector in the UAE?
Fashion and apparel
4. What are the issues in the e-commerce industry in the UAE?
Manner of payment and the shipment problem.