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How to Get Your E-Commerce License in 6 Easy Steps in Dubai?

By Dhruva Bhatt - 14 Jun 2022 Last Updated: 14 Jun 2022
How to Get Your E-Commerce License in 6 Easy Steps in Dubai?

Table of Contents 

  1. 1. Dubai and E-commerce
  2. 2. How to Apply for an Ecommerce License in Dubai?
  3. 3. Conclusion

After the Covid-19 pandemic and the lengthy lockdown scenario, E-commerce has become the new boom in the commercial world. With their frictionless buying experience for the consumer, E-commerce enterprises emerged as a savior.

Dubai, being a thriving business metropolis, provides a rewarding environment for entrepreneurs and investors to begin their e-commerce adventure. With specific business-friendly policies, minimum criteria, and low tax rates, the emirate is accessible to the latest, innovative, and modern industrial sectors.If you want to start an E-commerce business in Dubai, you'll need to get an E-commerce license first. Thus in today's blog, Dhanguard will extensively discuss the E-commerce License in Dubai. So without any further ado, let us begin!

Dubai and E-commerce

E-commerce is extremely important to a country's economy. It generates new economic activities, boosts a country's revenue, and expands job prospects. E-commerce has risen at a far faster rate in Dubai than in the rest of the world because it is a technology-driven and business-friendly emirate that always embraces new business projects. According to a 2018 PayPal cross-border consumer survey, 81 percent of Dubai residents shop online on a regular basis. This is an astonishingly high figure.

The region has one of the greatest smartphone and Internet penetration rates, as well as a tech-savvy populace, making it an ideal location to launch an e-commerce venture. The ease of doing business is one of the numerous benefits of opening an eCommerce business in Dubai. It implies that you can simply start and run a firm. In Dubai, registering a business takes an average of 8 days. The cost of registering a business is extremely low, and the entire process is quick and painless. If you want to start an E commerce business in Dubai, you'll need to get an E commerce license.

How to Apply for an Ecommerce License in Dubai?

Obtaining an E-commerce license in Dubai will legitimize your firm and allow you to conduct business without limits.

The steps for obtaining an e-commerce license in Dubai are as follows-

Select the Preferred Jurisdiction

The first step is to decide which jurisdiction you want to work in. The free zone and the mainland are your choices. Both solutions have advantages and disadvantages that you should weigh before making a decision. You can only do business in other free zones and outside the UAE market if you own a free zone business. A mainland company, on the other hand, allows you to conduct business both within and outside of the UAE. A free zone business obtains 100% ownership, whereas a mainland business requires a UAE national to control 51% of the company.

It is more expensive to start a business on the mainland than it is to start one in a free zone. If you want to start a business on the mainland, the Department of Economic Development will offer you an ecommerce license (DED). The relevant free zone authority issues the free zone business license. Dubai has a number of different free zones.

Choose a Legal Structure for your Company

Decide what kind of company entity you are now. A sole proprietorship, limited liability company (LLC), corporation, or representative office can all be used. In addition to other legal issues, this selection will influence which sort of income tax returns you will file.

Pick a Business Name and Register it

A name for your company is necessary. Choose a name that is available, simple to remember, and symbolizes your company's essence. When naming your company, keep in mind the UAE's naming conventions. That is, blasphemous or derogatory phrases, as well as words referring to Allah, Islam, or religious organisations, are prohibited in your business name. Your surname or initials must also be absent from the name. It is only possible to use your entire name.

Once you've decided, you must register it with the DED and acquire an initial approval certificate, often known as a NOC.

Register your E commerce License

You can formally apply for an ecommerce license when you've decided on your jurisdiction, legal business structure, and business name. As previously indicated, the issuing authority for free zone and mainland business setups is distinct. For a free zone business, apply immediately to the applicable free zone, and for a mainland firm in Dubai, apply directly to the Dubai Department of Economic Department (DED). You must supply all or some of the following documentation in both circumstances.

  1. Copies of the shareholder's passport and visa (s)

  2. Local service contract

  3. No Objection Certificate (NOC) from the competent authority

  4. Copy of sponsors passport/ Emirates ID

  5. Articles of Association (MoA)

Key Aspects to remember-

  • A license fee of roughly AED 10,000 is required for a mainland business setup. Trade name registration, initial approval, and license issuance are all part of this process.

  • The NOC is only valid for six months and cannot be renewed. When submitting your trade name approval application, you can also apply for the NOC.

  • Only mainland companies are required to have a Memorandum of Association (MoA). It's a legal document that lists the company's name, registered office address, shareholders' names, and the share distribution. This regulation is not applicable to freeland enterprises.

Visa Application

You can apply for Dubai residency visas for yourself and your staff when you have obtained an E commerce license in Dubai. The number of visas you can apply for is determined by the size and location of your company.

Create a Business Bank Account

It's now time to open a corporate bank account so you may begin trading. In Dubai, there are numerous national and international banks, each with its own set of application and acceptance requirements. Select the one that best meets your requirements. You may be required to produce documentation such as your company's trading license, Memorandum of Association, source of finances, supplier information, and copies of shareholders' and authorized signatories' passports.

Conclusion

Dubai is a highly profitable market, and there has never been a better moment to start an ecommerce business there than now. E-commerce in Dubai has steadily grown over the previous few years, and now is the ideal time to obtain a piece of the booming market. If you follow the above steps correctly, you will have your Dubai e-commerce license in 7 working days and will be ready to start your business.

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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