E-Commerce Business Setup in Dubai Get Ecommerce License in Dubai
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Dubai Commerce City Free Zone has been the New eCommerce Centre of UAE. They're the dedicated Free Zone for companies like eCommerce that structures the ecosystem to sustain the growing network in the Middle East and North Africa region.
The ongoing and new enterprises have a free zone that has a one-commerce licensing mecca with e-commerce rosters, customized company conformations that results in a touch of a button. They are designed for the operation process and gives the personalized client care.
Dubai Commerce City is the perfect spot to start the eCommerce business. The state-of-the-art technology brings the business sector to boom. This in future boosts employment opportunities of the business ecosystem. Nowadays, the business opportunities of the Middle East are on rise.
Individuals choosing an eCommerce business setup in Dubai may turn to Dubai Commerce City. Their strategic location plays an essential role to fulfill the business needs. Businesses connect with the audience to deliver good results.
The eCommerce sector has been booming and plays the role of accessing everything. Business shifts from offline to online market. This leads to more popularity in the eCommerce sector.
Dubai’s e-commerce sector grows due to a huge success in the eCommerce sector. Online sectors can target the maximum number of people through it.
As per the reports, the eCommerce sector is around 1 billion. So, starting an online business can give you huge opportunities.
E-commerce License
You have to follow rules to get an eCommerce license in Dubai. Contact our professionals to get an eCommerce license easily. Dubai's law is quite strict. Hence, the authorities will never allow a business to start if the paperwork isn’t done. The Department of Economic Development can provide e-commerce licenses in Dubai. It is essential to get a license before starting any businesses in Dubai. They play an essential role to conduct the business legally. If you like to start your online business and have no other better place than Commerce city, it is valid to set up your business there.Reasons To Set Up Your E-commerce Business In Dubai
- Easy and quick company registration
- Best centralized CRM solution for a good customer experience
- Tools for e-commerce business management can be available
- Business support services availability
- E-commerce platforms can integrate with different business solutions.
Types Of Dubai’s e-Commerce Licenses
Authorities of Dubai provide licenses for e-commerce business functioning. You have the flexibility to get your license based on your nationality and business activity.Portal License
Non-UAE nationals may apply to obtain a portal license. You can start a business in the UAE to link sellers and buyers. Research the pricing before applying for a portal license. The price of a portal license may differ based on the business needs.E-trader license
As per the portal license, businesses selling their products online can apply for an e-trader license. DED issues for the e-trader license. It is obtained through GCC and UAE nationals. You get an e-trader license if you have the ownership. E-trader license cannot help with physical shop requirements.Virtual Company License
Dubai’s economy launches a virtual company license program for promoting businesses. This is mandatory for overseas investors and foreign residents. Foreign residents can participate in commercial activities for online business. Sectors which can do businesses with a virtual company license are designing, computer programming and advertising. Clusters that determines the success of online businesses are:- Logistics - They have 105 warehouses made with latest technologies
- Business - can promote constant engagement to business sectors
- Social- It determines the success of business in Dubai.
- Commerce City- has components that have exhibition halls, art galleries and restaurants.
- Legal structure for business in Dubai Commerce City like limited liability and branch office
- License application at the DED or Dubai’s Commerce City
- Choose an appropriate trading name
- Submit the license application and fees
- Authority must get an initial approval certification
- Draft of MOA and local service agent agreement
- Wait for approval
- Open the bank account for transactions
The tide of technology rises while the vessels afloat to rise with it. The vessel is the internet and the entire e-commerce industry that thrive across the globe. The e-commerce industry has established its benchmarks from every corner of the world. With reliable shipping methods, easy checkouts and hassle-free payment, the e-commerce industry is getting traffic since their invention.
Why do People Shop Online?
Online shopping is so penetrating the current years because the internet works faster and there are more reasons for it. People depend on e-commerce stores for expensive super cars like Porsche and Lamborghini to the trivial things like daily groceries. Due to the industrial advancements and recent infrastructure, city life has become tougher and busier for people to drive to their nearest Mall. There might be risks like losing money to a parking ticket and getting stuck in a traffic jam. To sit on the comfort of your couch is better than suffering the ordeal. Middle East Shoppers adopt this trend as their lifestyle.Why Do People Purchase Online?
The top shopping regions are the Middle East. The E-commerce market of the Middle East has reached $ 18.5 billion in 2019. The revenue is expected to reach $ 4 billion in 2020 and 60% of shoppers are from Dubai. Several brick and mortar stores have taken their business to the online platform for more reach. 42% of Middle East people access their internet to shop online and 87% of online shoppers are satisfied with their shopping.Smartphones
Based on the study conducted by the Times of Oman, 1 in every 3 people of the Middle East make an online purchase from their cellular devices. 46% of online shoppers are convinced to shop through mobile phones and 85% of people access the internet with cellular devices. Knowing the statistics, several smart business owners of UAE are converting their websites with responsive designs and without the hassle of unnecessary scrolling.Demographics of Shoppers
The highest percentage of online buyers are from the younger age groups of 26 to 35 years. The highest numbers are from Egypt exhibiting 50% followed by KSA by 46% and then UAE and Kuwait as 42%. Products purchased online are electronics, air tickets, fashion wear and appliances.Social Media Influence
Social media decides customers what to buy and what not. Social media campaigns are the cheapest as well as fastest to spread exposure of business for increasing their visibility on the internet. The more followers, the more feedback the businesses get. Based on Global Media Insight's social media statistics of UAE are: YouTube has 88% of active users. Facebook has 79% of followers, while Instagram has 68% and Twitter at 53%. Pinterest and Linkedin have 25% and 45% of active users. 72% of online buyers come from social media platforms.Cross Border Shopping
49% of online buyers of the Middle East prefer buying cross-border products that provide free shipping facilities. There are certain barriers like long delivery period, fraud and identity theft to prevent customers from cross border shoppingUAE - the Powerhouse for E-commerce
People's attitude is one of the reasons for the rapid growth of E-commerce. Government supports the market that has initiatives like "Smart Dubai 2021" to thicken the e-commerce business and leverage emerging technologies. People's trust in digital payments and increasing digital penetration have contributed to the growth of e-commerce in the United Arab Emirates. 70% of people trust online payments in UAE and 66% of people trust online shopping. Things to Know- Read on How to Start an E-commerce Business in Dubai https://bss.blackswanbss.com/how-to-start-an-ecommerce-business-in-dubai/
- Know about eCommerce business scope in Dubai https://bss.blackswanbss.com/ecommerce-business-scope-in-dubai-uae/
- Information on How to apply for eCommerce Licence in Dubai https://bss.blackswanbss.com/how-to-apply-for-an-e-commerce-license-in-dubai/
- Know about eCommerce Licence in Dubai https://bss.blackswanbss.com/ecommerce-license-dubai/
Register Your E-Commerce Company Today
Residents of the UAE are avid users of the internet. According to research conducted by Google, 91.9% population of the UAE have access to the internet. Taking into consideration favorable factors like tax environment, increased internet usage, etc an e-commerce business in Dubai is most considerable. To obtain an e-commerce license in Dubai, you will have to go through the following steps
Deciding on the legal structure for your business
The first and foremost step involves deciding the legal structure of the business. In simpler terms whether your business is to be a Limited Liability Company (LLC), branch of a parent company, one-person company, representative office, etc. Branch offices and LLC formation come with a set of advantages. You will be interested on: E-Commerce License- DubaiSelecting your location
Selecting a location does not appropriately mean the place where you are about to set up your office, but the place from where you need to get your license. There are two types of zones in Dubai namely, Mainland and Free Zone. Setting a company or business in Mainland needs a local sponsor who owns 51% of the shares in the business while the remaining 49% is vested with you. Free Zones allow 100% ownership of your company. Both zones have their share of advantages and disadvantages. You need to weigh down all the factors and select the one suited to your business.Registering a trading name
As your business is not going to have a physical store, select a name that is easy to remember. it is better to use the trade name as the domain name as it is easy to find the company online. The domain name should not resemble any other existing company's domain name as this may lead to legal complications.Applying for a license
After confirming the location, you will have to apply for an e-commerce license. License is issued by the Department of Economic Development and hence advisable to approach them first. A company set up in Mainland will be liable to pay around AED 10,000 to the Department of Economic Development for initial approval, name registration, and license issuance. A Free Zone company will have to acquire a license from the concerned free zone authorities. The type of license issued depends on the nature of your online business.Applying for initial approval certificates
A NOC from the authority to start your e-commerce business in Dubai is the initial approval certificate. It is valid for six months and is non-renewable. An initial approval certificate can be applied at the same time as submitting their trade name approval application.Drafting MOA and local service agent agreement
In case you select Mainland for your company setup, you will have to draft a Memorandum of Association (MOA) with the sponsor and submit to the DED. One can avail help from any legal firm for this, they will help you type out the memorandum which specifies the special arrangements and ownership percentage among all partners. Free Zone companies can skip this step.Registering a physical office in Dubai
It is necessary to set up a physical office in Dubai as the authorities have made it mandatory to consider it as a legal entity.Final Approval
On completion of all the above steps, you will be able to get a business license in 1-7 days depending on the authority.Export/Import requirements
In order to receive your importers' code, you will have to register with one of the ports and customs authorities. A 5% customs duty is imposed on imported goods. Companies under free zone need not have import duty as they have to sell their products and services within the free zone.Opening of Corporate Bank Account
After a successful application for an e-commerce trade license, and establishing your business, you can open your corporate bank account. The process is simple and quick, all it needs is to select the bank of your choice.Advantages of Obtaining E-Commerce License in Dubai
- Low Operating costs
- Autonomy to capital and income
- 100% ownership in free zones
- No currency restrictions
- Resident visa for 3 years
- 0% corporate and personal tax
- No import duties on e-commerce license
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