E-commerce License in Dubai

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Shopping is one of life's greatest pleasures. Online shopping has made a lot of changes the different industries. It has opened doors to new and endless opportunities. Find below the details about the e-commerce license in Dubai, UAE.

Now the world has gone global; the world is one family. You don't need to leave your house if you don’t feel like it because nowadays you can shop for your favorite thing from any country or anywhere just sitting in front of your gadget.

Setting up an e-commerce store is a great way to make retail sales. However, in Dubai and the UAE, this requires an Ecommerce license. The UAE e-commerce license is also known as an 'internet trade license' or ITL and covers both the sale of tangible goods and non-tangible items.

Types of E-commerce Business Licenses in Dubai

Since the e-commerce business has been globally expanding, it has widened the opportunities for business owners at different levels. Thus, the Dubai Department of Economic Development (DED) introduced several E-Trading License activities, which include:

License in Dubai? Frequently Asked Questions (FAQs)

1. E-Trader License

This license is given to those who wish to provide services or sell products online. The  E-traders license in UAE (https://www.commitbiz.com/blog/how-to-obtain-an-e-traderlicense-in-dubai) is monitored by the Department of Economic Development and can only be obtained by UAE and GCC nationals residing in Dubai.

An e-trader license can be obtained only under single ownership. You cannot have a physical oce space or open a shop with this license.

2. Portal License

The Portal license is yet another e-commerce license in Dubai that non-UAE nationals can obtain.

By obtaining this license, you can start an online business in Dubai– to link buyers and sellers. A portal license is also best for a listing website for products, services, or reservations.

3. Virtual Company License

The Dubai Economy and DIFC recently launched the virtual company license. The virtual company license permits overseas investors and non-residents of the UAE to undertake commercial activities in the region.

Though this license is limited to only three sectors – computer

programming and related activities, designing activities, services related to printing, and advertising.

Advantages of Obtaining an E-commerce License in Dubai

Holding an e-commerce license can be a boon for an investor, as it provides the following benets:

No currency restrictions which encourage global trading

The autonomy to repatriate the revenue earned and the capital invested initially

Complete ownership of free zone company

Low operational costs as compared to the oine mode

Flexibility to obtain a resident visa for 3 years

Commitbiz will help you with every step of your success journey. You can get one-on-one mentorship from our experts and get guidance on how to clear the legal proceedings and grow your business.

Start your Entrepreneurship Journey Today in UAE from AED 5,500

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Documents Required to Obtain an Ecommerce Dubai License

The set of papers that are to be presented to the government authorities includes:

Duly lled application form

Passport/visa copies of the shareholders

Identity and address proof of the business investors and shareholders

Copy of sponsors passport/ Emirates ID

Local service agreement/ Civil works agreement

NOC from the relevant authority

Memorandum & Articles of Association

How to Get E-commerce License in Dubai?

Obtaining an e-commerce trade license in Dubai requires the business investors to follow a specic set of steps which involves:

The rst step to obtaining an e-commerce license in Dubai is to decide the legal structure of your business.

In simple words, whether to set up an  LLC (Limited Liability Company) (https://www.commitbiz.com/limited-liabilitycompany-formation-dubai), one-person company, branch of a parent company, representative oce, etc.

LLC formation and Branch oces are most common in Dubai as they come with an innate set of advantages.

2. Choose a Jurisdiction

The location of Dubai is a perfect platform for both new and established business entities. A few of the options that the location holds include:

1. Decide on the Legal Structure

Mainland Free zone

Choosing a brand name is one of the few things that are required to start your business. You can't begin another important process until you have settled on your company, product, or service name.

Getting your products ready to sell online? Then you'll need a business license. In Dubai, if anyone invests in the Mainland, the Department of Economic Development (DED) issues the same.

On the other hand, if you select a free zone, then the Free Zone Authority (FZA) will be liable to issue the permit.

Offshore 3. Register Your Trade Name 4. Apply for a Business License 5. Apply for an Initial Approval Certicate

An Initial Approval Certicate is a NOC from the authority to start your e-commerce business in Dubai. It will be valid for 6 months, and it is not renewable.

One can apply for an initial approval certicate at the same time as submitting their trade name approval application

6. Draft and Submit the Required MOA & AOA

You must draft a Memorandum of Association (MOA) with the sponsor and submit it to the DED. If you select the location of your company on the mainland, you have to follow this step.

Any legal rm can type out the memorandum, which must specify all partners' special arrangements and ownership percentages. Companies setting up in free zones can skip this step.

7. Finalize a Physical Space

The next step would be to set up a physical oce in Dubai, as the authorities in Dubai have made it mandatory for a company to have an oce to consider it a legal entity.

8. Comply with the Import / Export Requirements

Your business must be registered with one of the ports and customs authorities so that you can receive an importer’s code.

UAE imposes a 5% customs duty on imported goods. The companies that come under the free zone will not have import duty since they have to sell their products/services within the

free zones.

9. Open a Corporate Bank Account

Once you have successfully applied for an e-commerce trade license and established your business, you will be able to set up your  corporate bank account (https://www.commitbiz.com/open-bank-account-in-dubai).

Since the application process is quick and simple, you must determine which bank suits your needs.

E-commerce business has become necessary since people connect globally through the internet. Over the last few years, Dubai has seen a gradual rise in the online retail business. The e-commerce sector will add more revenue to the economy in the coming years.

So, if you think you are ready to take the plunge and take your small business or idea to the cloud, then an e-commerce business could be a nice option.

Commitbiz is here to assist you with all the legal proceedings at ease. Contact us now (https://www.commitbiz.com/contactus)-we’d be glad to assist!

Frequently Asked Questions (FAQs)

Who can obtain an e-commerce license in Dubai? +

Do I need an oce to obtain the license in Dubai? +

What are the e-commerce activities introduced by the DED? +

When do I need a DED e-commerce license for my online trading activity? +

What is the cost of a Dubai e-Commerce license? +

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