/ Blogs / Trade License / E Commerce Business License

What is an E-commerce business license in Dubai?

By Sakshi Srivastava - 01 Jun 2022 Last Updated: 01 Jun 2022
What is an E-commerce business license in Dubai?

Table of Contents 

  1. 1. The Procedure for obtaining an E-commerce License in Dubai
  2. 2. Conclusion 

Online shopping is now a huge part of our daily life, whether it's for personal consumption or for business. With the rise of e-commerce enterprises that are quickly capitalizing on the growing number of online buyers every day, this will continue to expand in the future years.

  1. E-commerce licenses are in high demand in Dubai, UAE. The UAE, which has the most sophisticated e-commerce sector in the entire MENA region, is expected to reach a stunning US$50 billion (AED 184 billion) in e-commerce transactions by the end of 2021, bolstered by a boom in e-commerce as a result of the global coronavirus pandemic.

  2. According to DeVere Forster, chief operating officer of Dubai CommerCity, the region's first dedicated e-commerce free zone, the value is up from the previously expected figure of $26 billion due to the influence of Covid-19 on the regional retail business.

  3. The emergence of startups and tech-savvy consumers in the UAE have all contributed to the UAE's worldwide e-commerce positioning.?

  4. More importantly, the UAE government is playing a key role in today's smart transactions between businesses and consumers by extending cashless payment choices for a variety of purchases and government services.

Thus in this blog, Dhanguard will extensively discuss how you can get an E Commerce License in Dubai and will also share an overview on how to start an E Commerce business in Dubai. So without any further ado, let's learn!

The Procedure for obtaining an E-commerce License in Dubai

Starting an e-commerce firm in the UAE might be beneficial due to the growing number of internet-savvy people.?

Follow the steps outlined below to obtain an e-commerce license.

Select a Jurisdiction (Mainland or Freezone)

In Dubai, there are primarily two jurisdictions in which to establish your e-commerce firm. If you choose to do business on the mainland, the Department of Economic Development will offer you an e-commerce license in Dubai (DED). The portal license is issued by the relevant free zone authority if you choose the free zone option. In terms of company scope, visa eligibility, and office location, there are numerous benefits and drawbacks to picking a free zone or mainland according to your business activity.

Pick a Legal Structure for your Business

Choosing a business structure is the next stage in obtaining an e-commerce license in Dubai. It could be a sole proprietorship, a limited liability company, a civil corporation, a branch office, or a representative office. The most common business structures in Dubai are the LLC and the branch. You can save money by selecting the right business structure. As a result, it's a good idea to seek advice from Dubai-based business setup experts.

Obtain Early Approvals for your Trade Name by Registering it

Because your e-commerce business does not have a physical address, it is critical to choose a company name carefully. You may do the same for your online store so that customers can find it easily. If the name is not distinctive, there is a risk of legal ramifications. The DED must reserve your trade name and issue you an initial approval certificate.

Documents required for an E-commerce license Application in Dubai

  1. NOC from the relevant authority for a local service agreement/civil works agreement

  2. Make a Memorandum of Agreement

  3. Copies of the shareholders' passports and visas

  4. A copy of the sponsor's passport or Emirates ID is required

Obtain Final Authorizations

Send all documents, including the Tenancy Contract and Ejari, to the appropriate authority for final approval. After you've received your business license, open a corporate bank account.

The Price of a Dubai E-Commerce License

The price of an E-commerce license in Dubai is determined by a number of factors, including the type of business, the number of visas required, the size of the office, and the location. If you want to start an e-commerce firm in Dubai for less than AED 12,500, free zones are the way to go (without a visa)

Read More: Software Company License in Dubai

In Dubai, How can You start an E-commerce Company?

With the e-commerce market expected to grow at such a rapid pace, now is a better time than ever to start your own online business. You must first obtain a trading license from a Free Zone or Mainland government in order to conduct business legally.?

Thus below mentioned are the steps on how to start an E-commerce firm in the United Arab Emirates:

Select the Appropriate Jurisdiction and obtain a Trading License

The type of your online business will determine whether you choose a Free Zone or a Mainland authority. A mainland license allows you to trade or sell your products and services to the local market directly, but a free zone license requires you to engage with a local distributor. Consider the variables that will help your company the most in terms of market reach and scalability in this scenario.

Create, Launch, and Maintain your Website.

Your website is the most significant component of your e-commerce business. It may take some time to build and test your website, but it will be well worth your time and effort because it will serve as a display for your products or services, a platform for attracting and interacting with clients, and your principal source of revenue. So, among other things, you must consider user-friendliness, online upkeep, secure hosting, and mobile usability while creating an income-generating website.

Include Payment Gateways for Online Transactions

As an e-commerce business, you must offer a variety of payment alternatives to your customers. The most convenient method to achieve this is to use integrated secure payment gateways that include credit card payments and prepaid card systems. Cash-on-delivery (COD) is another payment option that is useful in a variety of situations.

Make logistical, Storage, and Delivery Arrangements.

If your internet business involves selling or trading actual things, you must have suitable warehousing to store your goods. When determining where to establish your company, this issue is equally crucial. After you've secured a warehouse and office space, the next step is to set up a dependable logistics system to ensure that your products are delivered efficiently to your customers. You can use a third-party logistics provider or create your own.

Promote your Goods or Services

Everything still boils down to your marketing plan once your business is ready to launch in the market and you've put everything in place. Targeting the correct market for your products and services is the best method to do this. As a result, devise a marketing strategy that connects your products and services with the requirements and desires of your target market.

Conclusion?

These are just a few of the things to think about when beginning an online business in Dubai. You may or may not need more steps than those listed above, depending on the nature of your firm. In terms of the legal framework, Dubai makes it relatively simple for e-commerce enterprises to secure a license to operate. However, it should be emphasized that despite its simplicity, operating an e-commerce business without proper licensing is prohibited, and procedures must be followed meticulously in order to comply with the law.

Thus, we hope this blog provided you with insightful information. For more information on other related aspects, feel free to check out our website as well or get in touch with our experts by visiting our Branch Office.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Dhanguard provides faster and hassle-free Trade License with minimum paper work. With the guidance of our professional team of consultants you will get General trading license, Freelance license, Etrader license, Event Management License, Travel Agency license in Mainland and Freezone in UAE.

Get Instant Advice