Your Simple 10 Step Guide to Obtain E-Commerce License in Dubai

E-commerce is the new boom in the business industry, especially after the Covid-19 pandemic and the prolonged lockdown scenario. E-commerce businesses came as a saviour through their contactless shopping experience for the consumer. 

Being a metropolis for the flourishing business industries, Dubai offers entrepreneurs and investors a lucrative atmosphere to begin their business journey in the e-commerce sector. 

The emirate is open to the latest, advanced and modern industry sectors to operate with customized business-friendly regulations, minimum requirements and low tax rates.

So if you are also planning to start your e-commerce business in Dubai, first obtain your e-commerce license. 

Want to know how? Then read through the blog to learn about the same.

E-commerce business in Dubai

E-commerce is one of the fastest-growing industries in the business in Dubai. With an annual growth rate of 23%, the e-commerce sector ensures its future in the emirate.

The rate of making online purchases in 2021 has risen compared to 2020. As a result, the region's overall e-commerce market is expected to reach $49 billion in 2025, up from $31.7 billion in 2021.

Doesn’t this data tell you enough about the e-commerce business scenario in Dubai if you are willing to begin your business journey in the same sector?

You can learn about the steps for making a successful brand for your e-commerce business; you just have to get your e-commerce business license in Dubai for your business venture, and the process is discussed in the next segment.

How to Obtain an E-commerce Permit in Dubai in Ten Steps:

It is mandatory to have an e-commerce license in Dubai to start your e-commerce business. The process for the same is as follows. Have a look:

 Step 1: Finalize the Business Jurisdiction

Choose the location to start your business in Dubai. You have the option to create your company in Mainland or Free zone, but each one has its advantages and limitations. Learn more about the 8 steps to start a company in Dubai mainland.

Step 2: Decide the Legal Business Structure

Choose the appropriate legal structure for your business venture. There are four types of legal business structures in Dubai: 

  • Sole Proprietorship
  • General Partnership
  • Limited Liability Companies
  • Foreign Company Branch

Limited Liability Company (LLC) is the most popular form for legal business entities chosen by entrepreneurs and business leaders entering the industry. Learn more about Limited Liability Company formation in Dubai.

Step 3: Choose a Business Name

Design and register your trade name; as you're an e-commerce business, it is better if the trade name or business name is according to the regulations and is easy to remember.

 In addition, there are some rules regarding the trade name, such as the name should not contain filthy or indecent terms, and it should not insult the general public. The name should not include God's name or divine traits in Arabic or English, such as Al Qader, Al Aleem, or Al Razzaq.

Step 4: Apply for the E-commerce License

Apply for an E-Commerce license with the Department of Economic Development (DED).  Submit the relevant documents and get your e-commerce license.

Step 5: Get the Initial Approval

After obtaining an e-commerce business license, apply for the initial approval certificate. The initial approval certificate is a no-objection certificate from the authority to start your business operations. DED can obtain this if the company is on the Mainland or from the free zone authority.

Step 6: Draft the MOA (Memorandum of Association)

Draft a Memorandum of Association for your company and the sponsor, partner, or investor and submit the documents to the DED.

Step 7: Rent an Office

Register your physical office in Dubai according to the business requirements; this might be a flexible-office space address that must be registered according to regulatory standards.

Step 8: Get the Final Approval

After completing all of the preceding processes, obtain final approval. The business license is usually obtained in 1-7 days and permits you to begin full-fledged activities.

Step 9: Register with Port and Custom Authorities

Register your company with the UAE's port and customs authorities so that you may get an importer's code. Imported items are subject to a 5% customs charge in the United Arab Emirates. However, companies operating in free zones will not be subject to import duties since they must sell their goods or services within the free zones.

Step 10: Open a Bank Account 

Open a bank account for future transactions for your all business activities. 

Getting an e-commerce license in Dubai for your business is full of hurdles, as you can see by the steps mentioned above. 

Therefore you need a business consultant to support you from the beginning of your business venture. Business Setup Worldwide is here to assist you in the whole process. 

We have our team of experts with several years of experience in the business, and they can assure you with their service of providing you with an e-commerce license in Dubai.

For any further queries, do not hesitate to contact us today. 

FAQs

1. What is the e-commerce license cost in the UAE?

AED 1070.

2. What are the Dubai Free zones that are eligible for e-commerce business?

● Dubai Media City
● Dubai Airport Free Zone
● Dubai International Media Production Zone
● Jebel Ali Port and Free Zone (JAFZA)
● Dubai Multi Commodities Centre (DMCC)
● Dubai Commerce City Free Zone

3. Can I sell goods online in Dubai without having a license?

No, it is illegal.

4. What is Dubai CommerCity?

Dubai CommerCity is a free zone designed to help the Middle East and North Africa (MENA) region's e-commerce sector expand.

5. How to get an e-trader license in Dubai?

Create a DED Trader account and register.

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