Are you thinking of selling products online? But you don’t have enough savings to get your business up and running? Don’t worry, because we have got you! Read Drop Shipping in Dubai – Detailed Guide to know how you can do that and more.
What if we told you you could sell products online without employing many or any employees, and without the need to cover any storage or inventory costs? If that idea sounds appealing to you, dropshipping in Dubai will be a great choice for you!
How to Pick a Niche for Your Drop Shipping Business?
First let us define what a drop shipping business is: it is a way of running a business where you accept orders from customers online, via social media, or on a website, but you don’t stock or ship products yourself. Drop shipping businesses use suppliers that ship products directly to the customers. This makes the drop shipping business the best option for those who want to set up a business with a small amount of savings.
To help increase your chances of success, finding a niche market to focus on is important. If you intend to sell a specific product, then you can target a certain group of customers and develop your marketing to attract them, which will result in stronger sales. So, take your time to explore the competition in your field of interest. Also, consider if there is anything a customer might struggle to get at the Dubai mall that they look for it online. Think strategically and creatively. This will help you to figure out where to focus your efforts.
Step-By-Step Guide for Drop Shipping in Dubai
The day-to-day activities of your organization determine the company’s business model. In addition to that, several activities need approvals and certificates, which you must list without fail and submit to the relevant authorities.
If you want to register your company in a specialized economic zone, then you can choose the free zone setup for your business. However, if you want it on the mainland, you also can register it as a sole establishment or even LLC. The structure of your company fully depends on your chosen business activities.
Register a Unique Trading Name for Your Company
Since this is a Drop Shipping in Dubai – Detailed guide, we have curated a checklist, especially for you:
Step 1: Apply for a Business License in Dubai
Applying for a business license in Dubai is a multi-step process. Even though these steps are not that complicated, it is always recommended to seek the assistance of experts as these require extensive knowledge of how the business incorporation processes work in the UAE.
Step 2: Be Specific About Your Business Activity
In order to successfully apply for a business license in Dubai, you have to list your business activity or activities. You can choose the most appropriate option from a predetermined list with over 2000 options to choose from. It is compulsory to list all the activities. Failing to record any activity can result in fines or even cancellation of your business license.
Step 3: Choose a Unique Name for Your Company
Your company name should be unique and memorable. When choosing a name, you also have to keep in mind to choose a name that fits the UAE’s strict naming conventions. The key point to note is that the company name should not include language that is considered offensive or blasphemous. It should not feature abbreviations of your name or other well-known institutions.
You can use your own name, but it is important that your business name has a legal entity like LLC or FZE. These are just some of the conventions to consider when naming your business.
Also, read mainland business setup Dubai.
Step 4: Determine Your Setup Type and Apply for a License
You have to choose between a freezone or mainland for your business setup. Both of these come with certain advantages and limitations. It is best if you seek expert advice to know which one is the best option for your drop shipping business. Once you have decided on your business type, you can apply for a license. How to get a license differs based on the setup type you have chosen, but in both these cases you have to submit:
- Proof of ID and address for shareholders and directors
- Copy of trade name confirmation
- Passport copies for directors and shareholders
Unsure about something? We will be happy to help you navigate your way through all these forms and paperwork!
Read how company formation consultants in Dubai can help you with your drop shipping business.
Step 5: Apply for Visa
This final step of applying for a visa contains four stages which include a medical test, but it shouldn’t take more than a week to get done. And once it is done, you and your drop shipping business are ready to dropship across the UAE.
Finding your way through all these latest regulations can be quite complicated. That is why we here at A&A Associate will be happy to be of assistance. We are highly experienced in supporting businesses. Our experts can help you set up your business within a few weeks.
Is Drop Shipping Legal in the UAE?
The short answer will be: Yes! As long as you have the correct business license and visa, you can conduct drop shipping in the UAE. Your business must be compliant with the business laws in the UAE.
Do I Need a Trade License for Drop Shipping?
The answer would be yes. As per the regulations of the UAE government, no foreign companies are allowed to trade in the UAE without a trading license. This applies to drop shipping too.
Read How Can I Get a General Trading License in Dubai to know more.
Best License for Drop Shipping in Dubai
If you want to get started with a dropshipping business in Dubai, you need a business license also known as a trade license. For personalized and tailored guidance, get in touch with us at A&A Associate. We are expert company formation consultants in Dubai and the United Arab Emirates. With our professional help, you can have your drop shipping business up and running in no time.
