How to start an eCommerce business in Dubai? : The advent of internet technologies has seen a major shift from showroom retail stores to online mobile shopping in Dubai. Recent studies show that nearly 60 percent of Dubai residents make online purchases of large cash volume on a regular basis. The UAE government is all set for the development of purpose-built duty-free e-commerce hubs. UPS, Economic Zones World (EZW), Dubai Customs, MasterCard, Aramex, du, Dubai Trade, ENBD are the main participants of such schemes.

Starting an eCommerce business - the process

Establishing an eCommerce company in Dubai is easy, but you have to adhere to the laws and regulations of Dubai while doing so.

Step 1: Decide on a legal structure for your business

You should decide first whether to set up a one-person company, branch of a foreign company, representative office or a Limited Liability Company (LLC).

Step 2: Choose a location

The location you choose can be a Free Zone or the Mainland. A free zone allows you 100% ownership whereas in a mainland company, you need to have a local sponsor with at least 51% ownership in the company.

Step 3: Register a trade name

As the business does not have any physical presence, it is better to choose a unique name that people will easily remember. It can be your domain name as well.

Step 4: Apply for a license

For an eCommerce mainland company, you have to apply to the Department of Economic Development (DED). If it is a free zone eCommerce business, the eCommerce license in Dubai will be issued by the relevant free zone authorities.

Step 5: Apply for an initial approval certificate

Apply for an Initial Approval Certificate (valid for 6 months, and not renewable) right when you submit the trade name approval application.

Step 6: Draft a MOA and local service agent agreement

A Memorandum of Association (MOA) needs to be drafted with the sponsor and submit it to the DED.

Step 7: Register a physical office in Dubai

Authorities in Dubai have made it mandatory that a company should have an office to consider it a legal entity. Hence rent or buy office premises.

Step 8: Final Approval of the license

After you complete all the above steps; you will get a business license within 1-7 days, depending on the authority.

Step 9: Import/Export requirements

Register your business with one of the ports and customs authorities to get your importer’s code. UAE imposes 5% customs duty on imported goods. The companies under the free zone will not have import duty.

Step 10: Opening a corporate bank account

After you have established your business, you will be able to set up your corporate bank account in UAE. After following these steps, you will get eCommerce License in Dubai & can start your eCommerce business in Dubai.

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A lot of speculation surrounds the new National Media Council Influencer licensing laws. Several influencers from Dubai to Abu Dhabi have been asking questions about what it means to become a licensed influencer in the UAE. How would it affect the content on social media? Would they need a trade license along with the e-media license? Do I need to sign with an influencer agency to continue my business as an influencer? All influencers need to know certain things before they obtain the special media "influencer" license.

The Basics Of UAE Media Law

When you are a social media content creator, and plan to pursue your career and profession, then you should get the full low-down on the laws that govern media in the UAE, having social media and the GCC region. The Influencers must familiarize themselves with Emirati laws that govern defamation, photography, and privacy. For instance, it is considered to be illegal to take someone's photo without their consent. Many street style bloggers feature other people with their outfits on their platforms, this would potentially be an issue. To make defamatory statements against another family, individual, or company would put you in some serious issue with the law. This might include a bad review of the restaurant, so food bloggers need to be mindful of the language they use while reviewing local eateries. Privacy in the UAE seems a big deal. It's illegal to spill someone secrets or disclose information without a source's consent.

The Cultural Sensitivities

Content which is acceptable abroad might not be legal in the UAE, due to the cultural sensitivities of the country. "The content encouraging sinful activity, or that is aimed at corrupting minors is considered illegal. It also extended to content that might negatively impact on social cohesion and peace, like content that stirs sedition or sectarianism, mocking the leaders of the nation, or that hurts national unity or social peace, ". Influencers must avoid posting controversial content about politics, religion, world leaders, and "hot topics" on their social channels. Advertising of alcohol is prohibited in the UAE. Influencers must be careful if they post sponsored content that includes a glass of "grape" in their hand, as it may appear that they're advertising alcoholic products.

Only to Accept Freebies? A License Isn't Needed

The developments in the influencer licensing law states bloggers who solely receive free products, gifts or experiences in exchange for coverage on social channels will not require a license or to be signed to the influencer agency to operate in the UAE. When you are the new influencer for earning income through your content, you don't require a license or signing with an agency.

Three Different NMC Licensing Options

To legally operate within the UAE, influencers must require a license. The NMC provides three different licensing options for UAE-based influencers. Either you earn thousands of dirhams for sponsored posts or just starting, the licensing option would work for you. The different licensing options are

First Category

The influencer can apply for an individual license to remain as an independent influencer. The license cost around 15,000 Dhs and the influencers would need a separate trade license.

Second Category

The partnership license needed for small groups of influencers like family and friends. Influencers may come together and set up a company, before applying for NMC's e-media license. The company needs to get registered and hold a trade license. The fee would be Dhs 15,000.

Third Category

The influencer could sign up with one of the official influencer agencies, certified by NMC like ITP Live. The agency must hold an aggregated license that covers all of the influencers on their board. The influencer must be registered with an agency that is certified by the NMC to continue operating within the UAE. Influencers are signed up with one agency and the paid deals will go through the company.

Be Cautious Who You Sign With

Most of the influencers will consider the Third Category option and look into working with an agency, as that would be the most affordable option – especially for micro-influencers who don't earn a lot of money. Influencer agencies such as ITP Live are responsible for brokering sponsorship deals between influencers and brands. The ITP Live continues to advise its influencers on the types of content that deemed appropriate to be published within the UAE. The ITP Media Group-owned agency takes an active role in supporting their influencers with brand management, content creation and production, social media verification, and so on. The ITP Media has 30 years of experience in the Middle East for creating content on various platforms both regionally and internationally, influencers can choose to work with the ITP Live. The Influencers can aim to sign with an agency that provides them with support, values quality influencers and content.

It Would Cost You If You Aren't Licensed

Influencers who fail to follow the new laws are at risk of their accounts shut down and a fine of Dhs 5,000.

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Your intend to carry out business in UAE through physical existence puts you through the following benefits

Tax Exemption

UAE has exempted income tax, this, in turn, is a boon to business investors. But as of 1st Jan 2018, VAT proceedings are implemented in the nation as part of the GCC countries, and thus a mandate of 5% is involved. You don't have to worry about paying other taxes in the UAE.

Repatriation of Capital Invested and Profits Earned

If ever there is a scenario where company liquidation takes place, then there is no need to pay any extra amount for clearance. The complete capital invested and profits earned can be taken back by you.

Manifold locations

One parameter involved in business growth is location. UAE offers manifold locations like Free Zone, Mainland, and Offshore. These locations have their benefits. It is always better to choose an appropriate location based on your business rather than choosing one randomly.

An International Gateway

UAE is situated in such a way that you get access to most countries. Situated at the southeast end of the Arabian peninsula, the nation has Qatar to its west, Oman to its east, Iran to its north, and Saudi Arabia to its south. With a business in the UAE, you can gradually flourish in the neighboring countries which are in turn beneficial for your business.

Stable network connectivity

One of the key parameters for businesses is stable network connectivity, and UAE has got a robust network connectivity.

Flourishing business base

UAE is one of the countries which embrace all nationalities. UAE is home to around 200 nationalities, and with such a diverse population there is scope for every business entity. Dubai gets you covered if your business is small, large, an established business, or a start-up. Investing in Dubai to start your business is an astute choice. These key points stand beneficial and grab the attention of the world. As an investor, before investing there are many more things you need to be aware of.

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