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How to establish ecommerce business in Dubai?

Covid – 19 pandemic has raised the demand for virtual shopping and most of the people consider online shopping as the safe and secure solution to overcome the pandemic. UAE ecommerce sector(e-commerce business in Dubai) has a bright future and the revenues are expected to almost get doubled from 2019 to 2022. Dubai has one of the rapidly-growing markets in the Middle East with millions of internet users and highest internet penetration rate as well. The UAE E-commerce Industry is expected to maintain a massive growth through to 2022.

ecommerce business in Dubai
ecommerce business in Dubai

Why people start ecommerce business in Dubai?

  • Dubai has a fastest growing ecommerce market in the Middle East. The online buyers are whopping and gradually, increasing their share in the local economy. The government strategies attract more foreign direct investments and reduce the overall cost of activities by 20%.
  • UAE has one of the best transport infrastructure that ensure sustainable development of the country and other public works that support the economic growth.
  • With a plethora of ecosystem, try to gain a perfect incubator for your business. Gain a competitive edge with heightened infrastructure, connectivity, simple business set up, favorable government incentives and many more.
  • UAE provides extensive support while choosing your new business. The government provides free trade zones, where the established business has low-operating cost, professional business networking opportunities. And reduced tax rates as well.

How to start your UAE ecommerce industry?

As per research, more than 90 percent of the population have internet access and go through several factors that boost up the ecommerce business in Dubai!

Initially, obtain E-commerce license in UAE! Incorporating a company in Dubai is easy, but it’s essential to comply with the laws and regulations while doing so. While gearing up for an online business license in Dubai, go through the legal procedures and launch your online store!

Steps to obtain UAE Ecommerce Business License,

  • Decide your business structure

Decide the type of legal entity based on the circumstances! Choose your business structure whether it’s an LLC, single-owner Company, branch of a parent company or representative office.

LLC formation and branch office is common in Dubai as they come with a set of interesting advantages.

  • Decide your business location

Location is not a place to set up your office instead, a place to get your business license. For choosing a web-based company, get approval from DED.

Dubai provides two locations for your business free zone and mainland

Ecommerce license in Free zone allows 100% ownership of your company. In Mainland, the local national should have at least 51% of the share and remaining would be your share.

  • Decide a trade name

Choose a trade name that people will remember easily! Since, you don’t have a physical presence, set up your trade name as attractive domain name. This allows people to find your company online. Make sure to have a unique name, if it resembles any existing company name then it may lead to several legal complications.

  • Apply for the license

After choosing the location, apply for E-commerce License in UAE. The DED issues license based on your application.

For company set up in mainland, you have to pay around AED 10,000 for initial approval, trade name registration, and finally, the issuance of license.

For ecommerce license in free zone get approval from the concerned free zone authorities upon the nature of your online business.

  • Apply for initial approval

Initial approval or NOC certificate is the key to start ecommerce business in Dubai. This approval is valid for 6 months and cannot be renewed.

  • Draft the MoA and LSA agreement

Draft MoA with the sponsor and submit it to the DED. While locating your company in the mainland, draft out MoA which specifies special arrangements and ownership arrangements among partners. Free zone companies are free from this step.

  • Register your office in Dubai

Set up your physical office in Dubai, as authorities have made it mandatory to have an office space to consider it as a legal entity.

  • Final approval of license

For the final license approval complete all the above steps and get your UAE Ecommerce Business License within 1-7 working days depending on the related authority.

  • Import or export requirements

The business must be registered with one of the ports and custom authorities to receive an importer’s code.  UAE has 5% customs duty on imported goods.

The free zone companies are free from import duty, since they have to sell the product or services within the free zones.

  • Open a bank account

After obtaining a successful ecommerce business license in UAE, it’s essential to set up your corporate bank account. Since the application process is quick, just make sure which bank suits your needs!

How A & A associates assist to start your ecommerce business in Dubai?

By setting up your UAE ecommerce industry, get connected with a huge internet population, this encourages the ecommerce growth within the next decade.

We ensure complete company formation services from start to finish! In the coming years, the ecommerce sector will add more revenue to the economy. So, we are capable of bringing up your small business idea into the cloud, bringing in potential business in the UAE e-commerce sector!

If you would like to start your ecommerce business in Dubai, then reach out to one of our experts in UAE Business Setup!