Whether you're shopping for personal use or for business, online shopping has become an integral part of our daily lives. With the rise of e-commerce enterprises that are quickly capitalising on today's increasing number of online buyers, this reality will become even more apparent in the future years.
In Dubai, UAE, there has been an increase in the demand for e-commerce licences. According to the joint report ‘UAE eCommerce Landscape' published by Dubai Economy and VISA, the United Arab Emirates, which has the most advanced e-commerce sector in the entire MENA region, is on track to reach a stunning US$16 billion (AED 59 billion) in e-commerce transactions in 2019.
Several reasons, notably the rise of start-ups and tech-savvy consumers in the UAE, have contributed to the country's worldwide e-commerce positioning. More importantly, the UAE government is playing a key role in today's smart transactions between businesses and consumers by developing cashless payment choices for a variety of purchases and government services.
The procedure of obtaining an e-commerce licence in Dubai (also known as an online business licence) is both affordable and straightforward.
An E-commerce licence allows you to conduct business over the internet with the help of a valid licence. A typical firm may be run effectively and has a physical framework.
It will also cover the only little marketplace with a limited supply of commodities, resulting in a small profit or revenue. E-commerce licence is a trading or exchange licence that functions similarly to a physical business but is accomplished and carried out with the aid and support of the internet.
As previously said, the customer and seller are the main causes of this industry. They use the internet to exchange money and goods. This is why the company is referred to as an internet company. This business likewise necessitates the same licencing as other legitimate businesses.
E-commerce is a legitimate business, however it is conducted solely through the internet, as opposed to traditional business, which is conducted exclusively physically and has a physical structure.
Normal business only covers a small region and generates a tiny profit. However, an e-commerce business allows you to connect with people all over the world while also providing you with a substantial profit. With the use of the internet, the general population is now able to connect globally.
Due to the increased need for online shopping, obtaining an ecommerce licence in the UAE is a potential business investment opportunity that will result in rapid market expansion. Customers' attitudes on online shopping and e-commerce are shifting, and more people are willing to experiment with online shopping possibilities.
Consumers are increasingly trusting internet buying platforms as the globe becomes more linked. In the future years, consumer spending on online retail platforms is likely to increase significantly. According to projections, eCommerce transactions in the UAE are predicted to reach AED 59 billion in 2019 and to expand at a rate of 23% annually between 2018 and 2022.
An Ecommerce License in Dubai will allow a corporation to sell goods over the internet and collect online payments in exchange for the sale of those goods. Depending on the company's business plan and sort of business, the scope of an Ecommerce firm can be expanded to foreign markets and varied categories.
One of the most appealing features of a Dubai Economy Ecommerce License is the ability to rent office space anywhere on the UAE mainland. A Dubai Economy E-commerce License will also allow the investor to rent a warehouse anywhere on Dubai's mainland to store items for e-commerce sales. However, in order for a foreign investor to receive an e-commerce licence from the Dubai Economy, the appointment of a Local Service Agent for a yearly charge is required.
For overseas investors, an Ecommerce License from Dubai's Free Zones is a cost-effective solution. Dubai's free zones provide investors with a plethora of business perks, including 100 percent foreign ownership, 100 percent profit repatriation, no customs duty, ease of business setup, convenient access to airports and seaports, and more.
Contact our team to learn more about the E-commerce License in Dubai Free Zones.
Factors such as rising internet usage, a favourable tax environment, and so on, operating an e-commerce business in the UAE can be beneficial. 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 licence.
The first stage in obtaining an e-commerce licence in Dubai is to determine your company's legal structure. To put it another way, whether to form an LLC (Limited Liability Firm), a one-person business, a branch of a parent company, a representative office, and so on. The formation of limited liability companies (LLCs) and branch offices are the most frequent in Dubai since they offer a number of benefits.
The location refers to the location from whence you will obtain your licence, not the site where you will open a shop or office. There are two types of zones in Dubai: (1) the Free Zone and (2) the Mainland. In a free zone, you have complete control over your business. In the case of the mainland, you must have a local sponsor who owns at least 51 percent of the company, with the remainder being your share. Similarly, both zones have their own set of benefits and drawbacks. You must weigh all of the aspects before deciding where to start your online business.
Because your company has no physical location, use a name that people will remember quickly. People will be able to readily find your firm online if you utilise the trade name as your domain name. Make sure your domain name does not sound similar to that of another company, as this could lead to legal issues.
After you've decided on a location, you'll need to get an e-commerce licence. Because this licence is issued by the Department of Economic Development, it is critical to contact them first. For a corporation based on the mainland, the DED charges roughly AED 10,000 for trade name registration, first approval, and licence issue. If you want to open a business in a free zone, you must first obtain a licence from the applicable freezone authorities. The type of licence you will receive is determined by the nature of your internet business.
A NOC from the authority to establish an e-commerce firm in Dubai is known as an Initial Approval Certificate. It is only valid for 6 months and cannot be renewed. When filing a trade name approval application, one can also apply for an initial approval certificate.
You must draught and submit a Memorandum of Association (MOA) with the sponsor to the DED. If you want your company to be located on the mainland, you must complete this step. Any law firm can type the memorandum, which must include the particular arrangements and ownership percentages for all partners. This phase can be skipped by businesses establishing themselves in a free zone.
The next stage would be to open an actual office in Dubai, as the Dubai authorities have made it necessary for a firm to have a physical location in order to be considered a legal entity.
You will receive a business licence within 1-7 days after completing all of the aforementioned steps, depending on the government.
To get an importer's code, your company must be registered with one of the ports and customs administrations. Imported items are subject to a 5% customs levy in the UAE. Companies operating within a free zone will not be subject to import duties because they must sell their goods or services within the free zone.
You will be able to open a corporate bank account once you have successfully applied for an e-commerce trade licence and established your business. Because the application process is short and easy, all you have to do now is decide which bank best meets your needs.
The following are some of the benefits of obtaining an eCommerce licence in Dubai:
Logistics and distribution are one of the most important business components of online shopping organisations. It's critical to have your products stored in warehouses and to have them available for sale on a timely basis. As a result, fast logistics and delivery of the supplied goods to the client is critical. Choosing the right warehouse and distribution network is therefore critical for success in the online retail arena.
A comprehensive website with detailed product listings, a clear layout, and an easy checkout process must be established to extend the market base and get more audience. A smartphone app for e-commerce buying is also a must-have, given that mobile adoption is at an all-time high.
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Every e-commerce company is different. Some people are interested in using a web-shop to sell physical things in the UAE. In the UAE, this is a regulated activity for which a licence is required.
A DED e-commerce licence allows you to sell to the general public in the UAE via the internet without the need for human interaction, utilising fully automated online applications. It enables payment acceptance through payment service providers who offer online electronic payments using a range of payment methods such as credit cards, smart cards, and electronic currency (E-cash)
If you want to target the local market (i.e., your future customers are in Dubai), you'll need a DED e-commerce licence.
No share capital is required, and 100% foreign ownership, Local Agent Arrangements, 100% profit repatriation, no tax, world-class infrastructure, networking opportunities, and more are all available
Obtaining and maintaining a registered office is a requirement for obtaining a licence.
There is now no broad E-commerce activity available, and you do not require it. A corporation with a General Trading License can receive the licence and engage in all sorts of trading, whether physically or through an internet platform. A corporation that is licenced to deal in one area cannot often trade in another industry online.
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