How to Get an E-Commerce License in Dubai, UAE?
Online businesses are an integral part of the business world right now. The COVID-19 pandemic has forced a lot of businesses to go online. Ecommerce businesses make life easier for a lot of people. To facilitate the move of businesses to the internet, the authorities in Dubai have released the E commerce license in Dubai.
E commerce, also known as electronic commerce or internet commerce, consists of business activities that involve buying and selling goods and services through an online portal. The monetary transactions that are made in the process are also online. Such E commerce activities are categorized under the E-commerce license in Dubai.
There are many different types of e commerce which include the following:
Business to Consumer (B2C)
Business to Business (B2B)
Direct to Consumers (D2C)
Consumer to Consumer (C2C)
Consumer to Business (C2B) Process Of Getting Ecommerce License Dubai
Here are the steps you need to follow in order to obtain the Ecommerce license in Dubai:
Select Legal Structure
Select Business Activities
Register Trade Name
Get Initial Approval
Rent or Lease Office Space
Submit Documents and Pay Fees
Apply for Owner Visa
Open Corporate Bank Account
Dubai is the gateway to trade and business in the Middle East. Dubai has established itself in this position thanks to the strong regulatory body that governs this region. The Ecommerce license Dubai helps fulfill these regulatory objectives of the government. For businessmen and entrepreneurs from around the world, it is the ticket to online businesses in Dubai.
Documents Required for E commerce License Dubai
The Department of Economic Development in Dubai requires some documents from you for regulatory purposes. These documents are mandatory if you want to obtain an E commerce license in Dubai. Some more documents might be required depending on the business activities you mean to perform.
Here are the documents required by the Department of Economic Development for the E commerce license in Dubai:
Passports Copies of all the shareholders.
Visas Copies of all the shareholders.
Copies of the sponsors’ Emirate IDs.
Local service agreement or civil works agreement.
No Objection Certificate (NOC) from the relevant authority.
Draft of an MOA (Memorandum of Association).
E Commerce License Dubai Cost
Do you want to know about e commerce license Dubai cost? The cost of setting up a business in dubai with an E commerce license will vary depending on a lot of factors. The basic cost of the E commerce license in the UAE is as low as AED 8,050. However, there are a lot of other costs involved in this like the costs of getting your office space and others
As a foreigner, you might not have a lot of ideas about the business setup procedures in Dubai and the rest of the UAE. That is why it will be in your best interest to seek help from professionals while setting up a business in the UAE. Overall, the cost of setting up your business with assistance and the Dubai ecommerce license will be anywhere from AED 6,000 to AED 15,000.
Steps to Obtain the Ecommerce License in Dubai
The process of obtaining the Dubai ecommerce license is relatively easy. However, if it is your first time applying for a trade license in the UAE then it might be a bit overwhelming for you. Luckily, there are experienced business consultants to help you navigate the steps in the process of obtaining the E commerce license in Dubai.
Here are the steps in the process of obtaining an Ecommerce license in Dubai:
1. Decide Legal Structure:
The legal structures that you can choose from will depend on where in Dubai you are setting up your business. If you start your business in one of the free zones in Dubai, then your choices will be limited to the legal structures allowed by those free zones.
Dubai mainland has a bigger variety of choices like Sole Proprietorship, General Partnership, Limited Liability Company, Public Shareholding Company, Private Shareholding Company, etc.
2. Decide Business Activities:
You need to include your business activities during the registration process of the E commerce license in Dubai. After you receive the license, you can only perform those activities. So, if you want to produce and sell your own products online, then after registration you cannot change to reselling other products.
3. Register Trade Name:
You need to register the trade name of your ecommerce business in the general diary of the UAE. After registration of the trade name, you need to post the name reservation in two local newspapers. The citizens of the UAE will have two days to plead their claim. After which your trade name will be registered for you.
4. Get Initial Approval:
You need to get a form from the Department of Economic Development in Dubai and fill it up. They will ask for basic information about you and your business. You will have to provide your
business plan. Take care when providing your business activities and legal structure, as these are important information, and any mishaps will cause expensive setbacks.
5. Get Office Space:
As an ecommerce business, you can easily opt for virtual office spaces in Dubai. If you will have physical activities, you can also opt for one of the many different office types available throughout Dubai.
6. Submit Required Document and Pay Fees:
The last step is to submit the required documents to the Department of Economic Development and pay the fee for the E commerce license in Dubai. After all, these are said and done, they will provide the license and you can start performing your business activities.
Advantages of Obtaining E Commerce License in Dubai
The E-Commerce license helped many businesses survive the pandemic. While there are many side benefits of doing online businesses like increased customer base, wider reach, decreased cost, etc. There are also some direct advantages related to obtaining the E Commerce license provided by the government of the UAE.
Here are some of the advantages of an E Commerce license in Dubai:
You can have 100% ownership of your own company. With an E commerce license in Dubai, you do not need to look for local sponsors to share ownership of your company.
The E Commerce license in Dubai allows you to easily open a bank account here.
You can register with the Dubai Chamber of Commerce, which will allow you to easily import and export goods.
promote your products in Dubai via ads on various social media platforms
Register your business’s own trade name with the help of an E Commerce license in Dubai.
E Commerce Trade License in Dubai, UAE
The e commerce trade license Dubai allows you to start a proper online business in Dubai through an online medium. Before the introduction of the E commerce trade license, all businesses in Dubai had to have a physical mode of operation.
They could have an online business but needed a physical office space to obtain a trade license and be recognized as an official business. The E commerce license in Dubai changes all that to an online medium.
The business activities that you mean to perform can all be online with the help of an Ecommerce license in Dubai. we can sell your products through your social media page or website.
You can accept payments for those products online as well. You can sell both digital and physical goods online. In the case of physical products, you need to deliver those products and you can accept cash on delivery with the E commerce license as well.
The businesses allowed by the E commerce license in Dubai are also known as online businesses license in Dubai. You can opt for virtual offices in Dubai if your specific online business requires no physical base of operation. The virtual offices were introduced in the Estidama program, otherwise known as the Sustainability program.
Source: https://www.companysetup.ae/e-commerce-license-dubai/