Offshore E-Commerce Business in JAFZA

E-commerce is a worthwhile business in the UAE, which is the quickest developing online business market in the MENA district. Various free zones in the UAE provide a cost-effective business setup climate to begin an e-commerce business. With an e-commerce business permit in the free zones, the companies are not permitted to trade directly with the buyers in the territory. Nonetheless, e-commerce business companies can sell the products of the suppliers already accessible in the market.

The UAE has an energetic e-commerce business market which is estimated to arrive at USD 27.1 bn by 2022, as per a new report in Gulf Today. Regarding size, the UAE's e-commerce business market positions 33 in the world. Over 80% of the UAE populace is additionally estimated to do dynamic online shopping. The development of e-commerce business platforms like Namshi, Noon and Amazon.ae, Careem Cab depicts the expanding significance of e-commerce business firms and the ascent of competition in the market. In case you are hoping to start your offshore company in Jafza, this guide is for you.

Impact of COVID-19

The recent COVID-19 pandemic has turned out to be a blessing in disguise for the e-commerce platforms because 184 countries, including the UAE, have implemented lockdown measures where people are only allowed to go out to purchase essentials.

The restrictions to lessen the Covid spread have resulted in a significant shift in consumer behaviour in the UAE, where people have started purchasing through e-commerce platforms, and a large portion of the offices are operating from home, and schools have started online classes. There has been an elevation in the number of online orders, and the number of new users has likewise increased. The new trend has added to the productivity of the e-commerce companies in the UAE, including e-training and e-learning.

Things to Consider Before Planning an E-commerce Business in the UAE Free Zones

After acquiring an e-commerce license, the entrepreneurs are offered an online platform to purchase and sell items. The accompanying things ought to be considered before establishing an e-commerce firm in the UAE free zones:

1.Selling of Products

In the free zones, the companies are not permitted to sell items directly to the customers. However, the companies reach a settlement with the suppliers whose items are already available in the market. The free zone companies can list down such items available for sale on their shopping website. The requirement for a local agent or distributor isn't required under the free zone e-commerce license because the companies are selling the suppliers' products.

2.Warehouse Requirements

The e-commerce license can be acquired with the Flexi desk facility in the free zones, and therefore the need for a warehouse or office space isn't mandatory. The suppliers with whom the company has an arrangement will store the goods if they are dealing with consumer items. Since there is no warehouse necessity, the operational expense for the e-commerce license would be less.

3.Item Registration and Customs Duty

E-commerce companies are not liable for the items registered with the relevant local authorities like health authorities and municipalities. This is because the companies will be dealing with the already registered items, and the supplier completes the registration of the items. Also, the supplier already pays the customs duty, and the e-commerce firm does not need to pay 5% customs duty.

Advantages of Establishing an E-Commerce Firm in the UAE Free Zones

  • Ability to repatriate capital and profits
  • No warehouse necessities
  • Not responsible for Product Registration (Supplier would take care of it)
  • Zero currency restrictions
  • 100% ownership benefits and no requirement of sponsorship
  • Zero corporate tax
  • Minimal operating costs
  • Import duty exemption on e-commerce permit
  • 3-year benefit of a resident visa

To learn more about offshore companies set up in Jafza, have a look at our latest guide on Starting an Offshore Company in JAFZA, which would give you a complete idea of the core grounds.

How Could We Help?

Entrepreneurs hoping to set up a business in one of the 40 UAE free zones are expected to be aware of the different regulations. A different authority governs each free zone with a comparatively different set of guidelines designed for the companies that function inside the free zones. It is practically impossible for foreign entrepreneurs to get a grasp on every one of the laws and regulations, especially if it’s their first business venture. An efficient method to execute the process is to give up the UAE company arrangement responsibilities to the best business setup experts in Dubai, UAE.

Business Setup Worldwide is known as one of the leading company arrangement specialists in the UAE. Our well-qualified business setup specialists have helped many e-commerce entrepreneurs accomplish their dream of starting a company in the UAE. Our company arrangement specialists are well aware of the local laws and regulations. The clients get undeniable guidance and backup throughout the business setup process in Dubai, directly from registration to incorporation. Contact us today-we'd be glad to help!