Dubai E-commerce License: Costs, Steps, and Benefits

The United Arab Emirates has become a fast-rising global digital commerce centre. Of its emirates, Dubai has emerged as the locus for founders interested in creating lucrative internet businesses. However, if one wishes to legally do business in the region, it is important that they get an E-commerce Business License in Dubai. This post provides a step-by-step process on E-commerce license registration in Dubai, explains the requirements, cost, and answers to the most common queries.

Why Launch an E-commerce Business in Dubai?

Global trade opportunities The location of Dubai is strategically situated for trade, offers high-speed internet access, and the government of Dubai is supportive and technologically willing and ready. With a dynamic economy, low-tax environment and proximity to regional markets, the city offers the perfect environment for e-commerce businesses.

In recent years, local and international investors have flocked in to exploit the nascent digital economy of the Dubai. Therefore, having a valid E-commerce Business License in Dubai will enable business owners to legally sell their products or services online and consumers will trust them more.

What exactly is the E-commerce Business License in Dubai?

E-commerce License Dubai: E-commerce License in Dubai (Electronic commerce License) A E-business license Dubai is a legal pass for doing business all across Dubai for individuals and for companies in Dubai. The business license is either granted by the Department of Economic Development (DED) if you’re setting up on the mainland or one of the various free zones if you decide to go down that route.

Without this license, it is against the law to sell goods or services online and can carry penalties such as: fines and a shut down of your digital activities. Hence, the obtaining of this license is more than just necessary, it is mandatory for any online business operating in Dubai.

Classifications of E-commerce licenses in Dubai

E-commerce licenses are of two types:

DED Mainland E-commerce License If you plan to carry out e-commerce activities in the mainland, you must have one of these licenses to do so.

This alternative gives you the opportunity to cater to global and local markets. It allows you to operate your business all over the UAE without being limited.

Free Zone E-commerce License

If you achieve all three with a free zone, (for example, if you are more structured around capturing business from within the free zone in question, or if you want 100% ownership) then free zone licence (for example, issued by Dubai Internet City, Dubai Multi Commodities Centre -DMCC, or Dubai South) is for you.

Whether to set up on the mainland or a free zone depends on your business model, desired ownership and future aspirations.

Steps to Getting an E-commerce License in Dubai: Step by Step Process

How to Get an Ecommerce Business License in Dubai (UAE) 1 July 16, 2020 July 16, 2020 by Adnan Khan Getting an E-commerce business in Dubai are few things but complicated considering the most striking requirements for your business will include initial business homepage along with business privacy policy. Here’s what would happen:

Select Jurisdiction

First, determine whether you want to work out of a free zone or on the mainland. Each has its own eligibility rules, benefits and limitations. Free zones offer full foreign ownership of a company, while mainland permits access to the wider UAE market.

Choose the Type of Business Activity

You need to choose an appropriate business activity which the e-commerce business type you are conducting. This might be online or digital services, or perhaps a mixture of the two.

Choose A Legal Structure.

Consider a legal form (sole proprietor, LLC, branch of an entity) based on the number of partners and capital contribution.

Register Your Trade Name

Choose a unique business name and have it approved by the Department of Economic Development or the appropriate free zone authority.

Apply for the License

Apply for E-commerce license registration in Dubai with all necessary documents and your application. These typically include:

• and Passport of Shareholders
• Copy of UAE visa or entry stamp (if applicable)
• NOC (in case of Government /Serving staff)
• Business plan ( in some jurisdictions)

Get Initial Approvals And Make The Payments

If your application is accepted, then plan to pay a fee directly in order to move forward. Cost of E-commerce license registration in Dubai is depends on the jurisdiction and nature of business structure.

Other: Establish your office (if you need)

A physical office is also typically required on the mainland. However, a number of free zones have been introduced flexi-desk or virtual office options that help to keep a control on costs.

Start Operations

After you get licensed, you can sell your product or service online and market it.

e-commerce License Registration Fees in Dubai

There are several factors based on which the E-commerce license registration cost in Dubai, such as jurisdiction, number of visas, office space, and extra services. On average:

Mainland license: AED 12,000 – AED 25,000 per year

(Yes, an approximate) free zone license cost: AED 5,500 to AED 15,000 per year

Note: There are no visa costs, office rent or any other optional business services.

Some free zones provide E commerce packages to encourage startups and single owner companies with low investment at hand.

Advantages and Benefits of E-commerce License Registration in Dubai

There are several business benefits you enjoy once you successfully register your Dubai E-commerce license:

• Maximum legal protection for your internet business
• A CCESS TO UAE’S ROBUST INFRASTRUCTURE & LOGISTICS
• Eligibility to open a business or corporate account at the bank
• 100% foreign ownership in free trade zones
• There is easy availability of world as well as domestic customers
• Buyers’ Credibility and Trust.
• Also, by registering your e-commerce business legally, you will be able to comply with local laws and take your mind off legal issues that are not meant to be on your table.
• Common Mistakes to Avoid
• Before beginning the registration process, steer clear of these mistakes:
• Picking the wrong jurisdiction for your business model
• When the business plan is not taken seriously
• miscalculating the E-commerce license registration fee in Dubai
• Not getting help if you need it

Just like any other project, investing time to carefully plan and seek advice from a business setup specialist will save you stress and cash down the line.

Final Thought

Starting an Online Business In UAE Get a Suitable E-commerce Business License Dubai How to Start an online business in UAE? Whether you plan to serve local customers or go global, you need to arrange a legal structure so you can operate your business smoothly and gain credibility in the cut-throat digital space.

E-commerce license registration in Dubai is simple if you do a little planning and select the appropriate jurisdiction. From choosing your trade name to estimating the E-commerce license registration cost in Dubai, every step you take now creates the building blocks of a successful e-commerce setup.

So, knowing the nitty-gritty of the E-commerce Business License in Dubai, putting together all of your documents together and investing in the most suitable setup for you could mean a flourishing digital business in one of the most business favoring cities in the world.

FAQs

For an E-commerce Business License in Dubai, Do I Need a Local Partner?

No, not necessarily. If you locate your business in a free zone, you can be the sole owner (100%) of the company. For mainland operations, recent reforms have also permitted full foreign ownership in many sectors, including e-commerce.

What is the timeline for registering an E-commerce license in Dubai?

It usually takes 5-10 business days, but time may vary some depending on where you are and the documents done.

Can I start e-commerce business from home in Dubai?

Definitely yes, provided you’re applying for a license in a free zone that permits virtual office setups. But, you still need to register your business, by law.

What is the most affordable way to acquire E-commerce license in Dubai?

In some free zones they start from as little as AED 5,500 for a package. These commonly include a permit, shared space and a visa quota.

Can we sell it on Amazon, Noon or other platforms with Dubai ecommerce license?

Absolutely. You can join hands with third-party platforms such as Amazon UAE or Noon after attaining your E-commerce License in Dubai and grow your audience.