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E Commerce License in UAE! Need one for Yourself? Then don’t Miss This!

By Dhruva Bhatt - 20 Jun 2022 Last Updated: 20 Jun 2022
E Commerce License in UAE! Need one for Yourself? Then don’t Miss This!

Table of Contents 

  1. 1. E Commerce in UAE: An overview
  2. 2. Types of E Commerce Licenses in UAE
  3. 3. Procedure to obtain an E Commerce License in UAE
  4. 4. Benefits of having an E Commerce License in UAE
  5. 5. Important Things to Consider When Starting an E Commerce Business
  6. 6. Conclusion

In the United Arab Emirates, the future of E commerce appears to be very promising. The UAE is one of the most important B2C E commerce markets in the fast developing MENA region. The UAE E commerce market is expected to continue to grow in double digits until 2022, with 9.5 million web users and a 96.4 percent web penetration rate.

  1. Despite having a population that is a mere fraction of Saudi Arabia's, the UAE managed to outperform the latter with a market value of over US$10 billion. 3.2 million adults, according to reports, shop online.

  2. Secondly, the government recently unveiled the emirate's E commerce plan, which intends to reinforce the emirate's position as a global logistics hub and accelerate the growth of online commerce.?

  3. The strategy intends to increase E commerce's contribution to the local economy to Dh12 billion by 2023, and to do so by lowering the total cost of E commerce operations by 20%, as well as the costs of purchasing products, storage, customs charges, and transportation VAT.

Thus in this blog, Dhanguard will extensively discuss the E Commerce License in UAE along with the procedure, benefits and much more. So without any further ado, let's learn!

E Commerce in UAE: An overview

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E commerce, often known as electronic commerce or internet commerce, refers to economic activities including the purchase and sale of goods and services over the internet. The financial transactions that take place as part of the procedure are likewise done online. E-commerce activities like this are covered by UAE's E-commerce license.

There are many distinct varieties of E commerce Business, including the ones listed below:

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  • Consumer to Consumer (C2C)

  • Consumer to Business (C2B)

  • Business to Consumer (B2C)

  • Business to Business (B2B)

  • Direct to Consumers (D2C)

Types of E Commerce Licenses in UAE

There are a few methods for licensing an online business in the UAE. They are dependent on the type of E-commerce business you intend to start.?

The types of E commerce Licenses in UAE are enumerated below-

E Commerce License

Companies who want to sell their own goods through their own website may choose an E commerce arrangement.It could be a small scale internet retailer like Mumzworld.com or a large-scale online retailer like Amazon.com.

E Trader License

It is the most cost effective approach to start an E commerce business in Dubai. The Dubai Department of Economic Development issues the license, which costs 1,070 AED.

Freelance License in UAE

Any freelancer can now apply for a freelancing license in the UAE, as it is now legal. You can promote and provide your services online in the UAE and throughout the world if you have the license. It's ideal for designers, IT specialists, teachers, personal assistants, and other types of freelancers.

License for Commercial or Service Purposes

Even if your license doesn't specifically pertain to E commerce, that doesn't mean you can't sell your goods or services online. You may start a firm for any type of business and run it entirely online. The form of sale makes no impact under the law. You can use the Internet to deliver educational training, marketing consultations, sell food or clothing online, or conduct any other form of business.

Portal License

Your commercial activity in the UAE will be named Portal or E marketplace if your organization will function as a middleman between the buyer and the vendor. Amazon.com is the most well known example of an E marketplace. The website acts as a marketplace for merchants to showcase their wares and for purchasers to purchase them. Portal is what you require if your activity is similar to that. It will not be difficult to locate such behavior in most free zones.

Read more: Finest Emirates in UAE For Branch Office Setup

Procedure to obtain an E Commerce License in UAE

The procedure for obtaining an E commerce license in the UAE is simple and quick.?

The procedure is outlined below-

  1. Decide if you want to start your business in a free zone or on the mainland of Dubai.

  2. Select a Business Activity If you want to sell your own products, the best option is a Freezone, but if you want to create a platform where sellers can sell their products or third-party services to buyers, we highly recommend the Dubai Mainland E Portal License.?

  3. Choose the ideal name for your E Commerce License throughout the registration process.

  4. We will complete an application for a business license and receive preliminary permission from government officials.

  5. Make a payment and receive your E Commerce Trade License?

  6. We'll assist you in setting up a corporate business bank account as well as a payment gateway to accept online payments. These methods to start a business in the UAE have been thoroughly outlined in our Website.

Benefits of having an E Commerce License in UAE

The benefits of having an E commerce license in UAE are enumerated below-

  • Individuals can lawfully promote and sell items and services through social media accounts such as Instagram, Facebook, and others, as well as a personal website, with this license.

  • You can also use internet marketplaces like Souq.com to promote their products and services. Individuals and single owner enterprises can legally participate in and reach out to clients at exhibitions and conferences in the UAE with this home business license.

  • It will also safeguard your trademark and any other intellectual property you own. You can also attend DED training and courses if you have an E commerce license.

Important Things to Consider When Starting an E Commerce Business

The Zone's Overall Market Scenario

The number of products available for purchase online in the United Arab Emirates is increasing by the day. With over a million people living in the country, it's no wonder that 84 percent of them use the internet to research products and make purchases.

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  • This figure is even more impressive when you realize that about 90% of the expat population here uses the internet.

  • Market research aids the company investor in better understanding penetration techniques and developing effective plans.

  • Take a look at the E Commerce Scenario in the MENA Region for a general overview.

Frameworks and Strategies for Websites and Apps

A website and a mobile app are two platforms that an E commerce business must be aware of. Because an e-commerce business is designed to deliver an online purchasing experience, simplifying platform strategy is critical to capturing the attention of an online audience.

Techniques for Obtaining and Retaining Customers

Customer acquisition is one of the most important activities for every E commerce startup or established company.

  • Customers that are loyal to a company are an asset, and keeping them through delivering exceptional services or products is critical to the firm's growth.

  • The worldwide reach of E commerce is expanding at a breakneck pace. Following the strategic footprints can help you attain your objective swiftly and effectively, whether you are a startup or an established E commerce operation.

Conclusion

We believe that obtaining all the necessary paperwork places itself at the utmost relevance because of the strict regulations by the government of UAE. But you do not need to worry because our team experts will guide you thoroughly. Getting an E commerce license is the stepping stone towards establishing your very own successful E commerce business in UAE.

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.

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