All you need to know about securing your E-Commerce License in Dubai

E-Commerce License in Dubai

The advancement of technology, the massive use of smartphones, and the speed of the internet have allowed the creation of an entire virtual industry that has not stopped growing exponentially in recent years. For this reason, it is not surprising that the E-Commerce sector is a point of interest for many investors in the United Arab Emirates, and that every day new entrepreneurs decide to acquire an Ecommerce License Dubai.

In this article, you will find information about what an this license is, what steps you must follow to obtain one, what is the cost of it, what are the documents necessary to acquire this type of license, and also how we can help you get one.

  1. What is a Ecommerce License Dubai?
  2. Types of licenses
  3. Procedure to get an E-Trade License in Dubai
  4. How much is the Ecommerce License Dubai?
  5. What are the necessary documents to obtain an Ecommerce License Dubai?
  6. Advantages of acquiring an Ecommerce License Dubai
  7. How can Connect Zone help you obtain your Ecommerce License Dubai?

1. What is a Dubai Ecommerce License?

Created in 2017, the Ecommerce License Dubai is an official document issued by the Department of Economic Development. This license is aimed at those entrepreneurs who do business from home and through online platforms, thus facilitating the offer of their products and services in a market where the possibilities are endless.

Having an online business means reaching a wide range of the public. For example, if you decide to create a clothing store in the local market of your country, the public target is limited. However, having a Dubai E-Commerce License allows you to overcome any territorial barrier and reach customers anywhere in the world.

In 2018 alone, the E-Commerce Sector in the United Arab Emirates was worth AED 36.7 billion.

2. Types of licenses

In the United Arab Emirates, there are three main types of Ecommerce Licenses. Each of these licenses is adjusted to the productive activities of your company and your nationality. These three types are the following:

2.1 Portal License

Dubai issues this license and only non-UAE Nationals can use it. This license will serve as a communication bridge between sellers and buyers, which facilitates the process of forming your company.

Also, this license is ideal for a listing website, where you can describe in detail your products, services, and reservations. If you decide to start your company and acquire this license, you must take into consideration that this license has a cost of AED 12,000.

2.2 Virtual Company License

The Ministry of Economy created the Virtual Company License, and allows overseas investors and non-residents of the United Arab Emirates to carry out agreements, transactions, and any commercial activity in the territory.

However, if you plan to acquire this type of license you should know that it is only applicable to the following sectors:

  • Computer programming (and related activities)
  • Services related to printing and advertising
  • Design activities

2.3 E-Trade License

If your goal is to trade products over the internet, then the E-Trader License is perfect for you. The DED created his type of license and only the GCC and UAE Nationals can acquire it

Note that investors who decide to opt for the E-Trader License must take into consideration that this license does not allow the opening of physical offices in the territory.

3. Procedure to get an E-Trade License in Dubai

Deciding to form a company in the UAE is the easy part. However, you cannot forget about the laws and regulations that you must comply with.

The authorities of the United Arab Emirates do not allow any random individual to start an E-Commerce Business and sell any product. If you want to start a company in Dubai you must apply for an E-Commerce License at the Department of Economic Development. The authorities will not consider your company legal until you have the license in your hands.

The application process for an Ecommerce License Dubai is the following:

3.1 Select legal structure for your business

The first step to follow to obtain this license is to choose the legal structure of your company.

Among the legal structures to choose from are the following:

The most popular options in Dubai are, without a doubt, the formation of Limited Liability Companies and Branch Offices, due to the multiple advantages that characterize these legal structures.

3.2 Select a Location

In this case, the location does not necessarily refer to where your company is based, but where you want to obtain the license from. Dubai is made up of two main zones: The Free Zones and the Mainland.

Getting an Ecommerce License in a Dubai Free Zone allows you to maintain 100% ownership. However, to form a company in Dubai Mainland you will need the services of a local agent, whose ownership of the company must be at least 51%, the rest will be your share.

Both zones offer unique advantages and disadvantages. Therefore, your job will be to decide which zone best suits the needs and objectives of your company.

3.3 Register a Trade Name

Since your business will not have a physical address, it is recommended that you choose a name that your customers will easily remember. Your trade name can be the same as the domain name, this way your customers can find your company more easily on the internet.

When you register the name, make sure you respect the different regulations that the UAE has regarding company names. For example:

  • It cannot have foul language
  • Avoid any relationship with any religious deity
  • It cannot be previously registered by another company
  • If you name the company after yourself, remember that the name should not be abbreviated.

3.4 Apply for a license

After deciding the location, it is time to apply for your Ecommerce License. If you want to establish your company in Dubai Mainland, you will have to pay around AED 10,000 for the registration of the Trade Name, the initial approval, and also the delivery of the license.

In the event that you want to get an Ecommerce License in a Dubai Free Zone, you must collect the license from one of the relevant authorities of the chosen Free Zone.

Note that this type of license issued will depend on the nature of your business.

3.5  Initial Approval Certificate

The Initial Approval Certificate is a No Objection Certificate from the authority that allows companies to legally operate in Dubai. You can apply for approval at the same time as submitting the trade name approval. This approval is valid for six months and is not renewable.

3.6 Memorandum of Association (MoA) and Local Agent Agreement

You must complete the MoA with your Local Agent and submit it to the DED. Any legal firm in the United Arab Emirates can type out the MoA, which must specify the ownership percentage of all shareholders and the specific arrangements between them.

Note that this step is exclusive for companies established in Dubai Mainland. Therefore, companies established in a Free Zone can skip this step.

3.7 Physical Office

The next step to follow is the setup of a physical office. The Dubai authorities have defined it as a mandatory requirement for companies established there to have a physical office. Otherwise, your company cannot be considered a legal entity.

3.8 Final Approval

Once you have completed the steps above, you should have your license within 1-7 business days, depending on the relevant authorities.

3.9 Export/Import Requirements

To be able to operate in the country, you need to register with one of the ports and customs authorities, so you can receive an importer’s code. The UAE imposes a 5% customs duty on imported products to companies established in Dubai Mainland.

Companies established in a Free Zone do not have import duty, since they can only trade their services and products with other Free Zones.

3.10 Open a Corporate Bank Account

Once you have completed the application process for your Ecommerce License and established your company, you will be able to open a corporate bank account. Opening an account is an extremely easy process, so your only concern will be choosing which bank best suits your needs.

4. How much is the Ecommerce License Dubai?

The Ecommerce License Dubai cost will depend on various factors. For example:

  • The size of your company
  • The number of Visas you need
  • The economic jurisdiction in which your company is established
  • And the size of your office.

However, an estimated cost can range from AED 15,000 to AED 50,000 depending on the requirements. Some requirements are the following:

  • Investor Visa Cost
  • Office Rent
  • Department of Economic Development Registration Fees
  • Sponsorship fee for the UAE Local Agent
  • Government Fees
  • Foreign Name Charges (if any)
  • Immigration Card Cost
  • Medical Insurance fee of the owner
  • Fee for the stamp of the company
  • Additional partner Visa fees (if needed)
  • Emirates ID fees

5. What are the necessary documents to obtain an Ecommerce License Dubai?

Part of the regulation process of the Department of Economic Development is the request for certain documents. These documents are mandatory if you want your company to be recognized as a legal entity and able to operate in the territory of the United Arab Emirates.

Depending on the productive activity of your company, you may need to submit some extra documents.

The requirements to acquire an Ecommerce License are the following:

  • Memorandum of Association (MoA)
  • No Objection Certificate (NOC) from the corresponding authorities
  • Copies of the local agent Emirate ID
  • Local Agent Agreement
  • Copies of the Visas of every partner
  • Copies of the passport of every partner

6. Advantages of acquiring an Ecommerce License Dubai

The E-Commerce Businesses has created a large number of jobs, not only in the United Arab Emirates but in the world. Although there are some advantages of trading products and services through digital platforms, for example, the low production costs and a larger customer base. There are other benefits directly related to obtaining the Ecommerce License Dubai.

Some of the benefits are as follows:

6.1 No Currency Restrictions

Due to the international nature of Ecommerce Licenses, the local government offers unique flexibility when trading multi-currencies. You have the possibility to carry out transactions in any legal foreign currency.

6.2 100% Repatriation

One of the greatest advantages of the Ecommerce License is that you can repatriate the profits generated and the investments made.

6.3 Free Ground of Operation

The government of the United Arab Emirates has been in charge of facilitating as much as possible the process of creating an E-Commerce Business in its territory. For this reason, the Free Zone, the Offshore, and the Mainland were places created to engage in different types of business. Each of these zones has its own regulations and procedures to follow.

6.4 100% Ownership

By having an E-Commerce License in a Dubai Free Zone, you can maintain 100% ownership of your company, without the need to hire a local agent.

7. How can Connect Zone help you obtain your Ecommerce License Dubai?

E-Commerce Businesses are, in short, one of the most attractive sectors for those entrepreneurs who want to invest time and effort in the United Arab Emirates. However, to carry out the formation process of this type of business, the acquisition of a license is of the utmost importance, and Connect Zone is the ideal partner to carry out this process for you.

With more than twenty years of experience, our firm is the trusted business setup agency of many successful companies. Our professionals in the area have the objective of accompanying you, guiding you, and offering you a quality service for the constant growth of your business. In Connect Zone, you can find services such as visa application, accounting, and clearing of documents, and we can even help you open an account in the bank of your choice.

Are you interested in knowing more about us and how to obtain this license? You can contact us at the following number +97143316688 or you can write to the following email contact@connectzone.ae where one of our representatives will gladly assist you.

Lastly, if you want to apply for a position in our agency, you can create an account and submit your CV at thetalentpoint.com, or you can contact us at the following email contact@thetalentpoint.com. You can rest assured, your data is safe with us, as we will not share it or store.

Securing a DED E-Commerce License: A step by step guide

DED E-Commerce License.

Because of the COVID outbreak, many businesses were forced to leave behind their traditional sales strategies and bet on the world of online sales. The United Arab Emirates became a starting point for many new entrepreneurs and a world of possibilities for those entrepreneurs looking to expand their businesses. As a boost measure for all investors, the government of the United Arab Emirates decided to create the DED E-Commerce License.

In this article, you will find information about what a DED E-Commerce License is, how to obtain one, what is the cost of an E-commerce License and how we can help you with the process of obtaining an E-Commerce License.

  1. What is a DED E-Commerce License?
  2. What are the requirements to obtain an E-Commerce Trade License in Dubai?
  3. Steps to get an Ecommerce License in the UAE
  4. How much is the cost of an Ecommerce Trade License in Dubai?
  5. Types of Ecommerce Licenses
  6. E-Commerce Licenses in the UAE’s Mainland
  7. Advantages of obtaining an E-Commerce License
  8. How can we help you obtain a DED E-Commerce License?

1. What is a DED E-Commerce License?

The DED E-Commerce License is also known as the Online Business License; this is due to the support from the government of the United Arab Emirates in offering new business alternatives.

This license allows companies to carry out transactions virtually. It is similar to traditional businesses, with the difference that all business activities are carried out through the Internet. Besides, customers can review the company’s catalogs and place orders online.

Companies can make deliveries of digital goods or deliver goods physically with the help of delivery services, if some of these activities are carried out through the internet, then it can be considered an Online Business.

2. What are the requirements to obtain an Ecommerce Trade License in Dubai?

The Department of Economic Development requires certain documents for regulatory purposes. Depending on the activities of your business, you may need to submit some extra documents.

The documents required by this department are the following:

  • Local service agreement
  • Memorandum of Association (MoA)
  • Copies of the sponsors’ Emirate IDs
  • No Objection Certificate (NOC) from the relevant authorities
  • Copies of the visas of all the shareholders
  • Copies of the passports of all the shareholders

Also, keep the following in mind:

  • The No Objection Certificate is valid for six months and is not renewable. You can request the NOC when you go through the application process for your trade name approval.
  • The Memorandum of Association is only required for companies established in the Mainland. It is a legal document that describes the name of the company, the name of the shareholders, registered office or physical address, and also the distribution of shares.
  • Companies established in the Free Zones do not need a Memorandum of Association

3. Steps to get an Ecommerce License in the UAE

To opt for an Ecommerce License in the UAE, you must follow the following steps:

3.1 Define your legal structure

The options for the Legal Structure of your company will depend on where you decide to establish it. If you decide to form your company in any of the Free Zones, then your options will be limited to the Legal Structure allowed in those Free Zones.

In Dubai Mainland, there is a wide variety of options, such as General Partnership, Public Shareholding, Limited Liability Company, Sole Proprietorship, Private Shareholding Companies, among others.

3.2 Define your business activity

During the registration process of your DED E-Commerce License, you must include the productive activity to which your company is going to dedicate itself. Once you receive the license, you can only engage in that activity.

In other words, if you decide to produce and sell certain products virtually, after registration, you will not be able to sell any other products.

3.3 Register your trade name

To continue the process, you must register the trade name of your E-Commerce company in the general diary of the UAE. After the registration of the trade name, you will have to place the chosen name in two local newspapers.

UAE Nationals will have two days to object to the name, if they do not make any complaint, then the name will be registered as yours.

3.4 Initial approval

In the Department of Economic Development, you must take and fill out a form, there you must add basic information about yourself and your business and also attach the business plan of your company.

Make sure you enter the correct information in relation to the productive activity and the legal structure since any error would mean a considerable delay in the process of acquiring your Ecommerce License in Dubai.

3.5 Search for an office space

By owning an E-Commerce Business you can choose to use virtual office spaces. If you are going to do physical activities, you can also opt for any of the business centers distributed throughout Dubai.

3.6 Submit the documents and pay the fees

The last step of this process is to submit the documents to the Department of Economic Development and pay the necessary fees to acquire your Ecommerce License in the UAE. After you have done this, your license will be issued to you and you can start your business activities.

3.7 Apply for a visa

Once you have applied for your DED E-Commerce License, you can begin the Visa application process for yourself and your employees. The number of Visas you can apply for will be limited by the location and size of your business.

3.8 Open your corporate bank account

To carry out any transaction with your clients, you need to open a corporate bank account. Then, there are many national and international banks in Dubai and the acceptance criteria and application process is different for each of them.

Once you choose the bank, it is likely that you will be asked for the following documents:

  • Memorandum of Association (MoA)
  • Company Trade License
  • Passport Copies of shareholders
  • Supplier information
  • Source of funds
  • Authorized Signatories

4. How much is an Ecommerce Trade License in Dubai?

The cost of forming a company with this license will vary due to different factors. The general cost of a DED E-Commerce License is AED 4,500. However, there are certain additional costs that you should take into account-

Some of the most common costs are the following:

  • Immigration card cost
  • DED registration fees
  • Sponsorship cost for UAE local partner
  • Investor visa cost
  • Investor’s medical and Emirates ID costs
  • Office rent
  • Fee for the stamp of the company
  • Medical insurance fee of Investor
  • Any other government fees
  • Additional partner fees, if needed
  • Additional partner visa fees, if needed

If you are a foreigner, it is normal if you do not know very well the laws, regulations, and the process of forming a company in Dubai. For this reason, it is advisable to hire a specialized agency to facilitate the formation process of your company and guarantee efficiency.

Also, the cost of forming your company with the assistance of an agency and including the DED E-Commerce License can range from AED 6,000 to AED 15,000.

5. Types of Ecommerce Licenses

In the United Arab Emirates, there are several E-commerce Licenses and in Dubai, they mainly offer three. You can obtain these licenses depending on the productive activity of your company and your nationality.

The three main nationalities are the following:

5.1 E-Trader License

If you want your company to sell products or offer services via the Internet, you can obtain an E-Trader License. This license is monitored by the Department of Economic Development and can only be obtained by UAE and GCC Nationals living in Dubai.

However, you cannot open a store or have a physical office space with this license. To learn how to start a business without office space in Dubai, you can contact us.

5.2 Portal License

This license can only be granted to non-UAE nationals. You can form your online business with a Portal License (which will connect sellers and buyers).

This type of license is perfect for a listing website, which includes services, products, and reservations. If you decide to establish your company in the Mainland region, AED 12,000 is the cost of this license.

5.3 Virtual Company License

This type of license was created by the DED and allows non-residents of the United Arab Emirates and overseas investors to carry out business activities in the region.

However, the Virtual Company License is only applicable to three sectors, designing activities, computer programming (and related activities), and services related to advertising and printing.

6. Ecommerce Licenses in the UAE’s Mainland

6.1 Ecommerce License Abu Dhabi (Tajer)

The Abu Dhabi Department of Economic Development (ADDED) issues this license. Also, it allows new and old entrepreneurs to include online trade activities in their existing licenses. Besides, you can get a new license to run the business through social networks and websites.

This license includes UAE residents and GCC Nationals under the following conditions:

  • One-person company for GCC nationals and Emiratis
  • Establishments for GCC nationals and Emiratis
  • Limited Liability Company for residents in partnerships with Emiratis

6.2 Virtual Merchant License from Ras Al Khaimah

The authorities created this license to promote businesses managed through social networks, smartphone applications and also websites. However, this license is only available to UAE citizens living in Ras Al Khaimah.

Some activities that you can carry out with this license are the following:

  • Real estate and commercial brokerage
  • Retail business
  • Technology and computers

6.3 Etimad Ecommerce License Sharjah

The Sharjah Department of Economic Development (SEDD) offers this type of license for  E-Commerce businesses in Sharjah that are carried out through social networks and from home. This license is available to anyone over the age of 18 and a resident of the Emirate of Sharjah.

6.4 Dubai Commer City (DCC)

This area dedicates to promote E-Commerce Business in the Middle East and North Africa (MENA). 

Also, this license offers the following benefits:

  • Pre and post-setup support
  • Smart and centralized customer relationship
  • Access to on-site ecosystem service
  • Business support, for example, talent acquisition, networking events, and marketing management.

Some incentives also include the following:

7. Advantages of obtaining an Ecommerce License

Obtaining the Ecommerce License Dubai has helped many companies sustain themselves during the pandemic. Although there are some benefits of conducting transactions virtually such as a wider reach, decreased cost, and a customer base, there are also advantages directly related to this license granted by the government of the United Arab Emirates.

Besides, some of the advantages are the following:

  • You can maintain 100% ownership of your business, in other words, by having an E-Commerce License in Dubai you will not need a local sponsor to share ownership of your business.
  • You can register your company with the Dubai Chamber of Commerce, which will make it easier for you to import and export products.
  • Basically, by having an E-commerce License, you can easily open an account in the bank of your choice.
  • You can promote your services and products through different social platforms and ads.
  • Lastly, you can register your company’s trade name with the help of an E-Commerce License.

8. How can we help you obtain a DED E-Commerce License?

If you are an entrepreneur who wants to start a new chapter in your life by forming an E-Commerce company in the United Arab Emirates and you do not know what steps to follow, do not hesitate to contact us. We are your trusted agency that will accompany you in every decision you make to ensure that your company prospers and works under the laws of the UAE.

Here, at Connect Zone, we will take care of the entire application process for an E-Commerce License in the UAE, from collecting documents to opening an account at the bank of your choice. Also, if you need it, we will be your local agent in Dubai to help you find the ideal space for your office.

Are you interested in learning more about the DED E-Commerce License? You can write to the following email contact@connectzone.ae where one of our advisors will help you gladly.

Also, if you want to know more about us you can send us your CV to thetalentpoint.com or you can write to us at the following email contact@thetalentpoint.com. You do not have to worry, your information is in a safe place with us, we will not share it or store it in our database.

Get complete insight on how to start an online business in Dubai and the UAE

Online Business in Dubai

Over the years, business models have evolved. Today, making transactions, attracting new customers and closing deals can be done completely online. With the outbreak of the Covid-19 and the beginning of the pandemic, the new entrepreneurs saw an opportunity to continue generating profits with the formation of an Online Business in Dubai.

In this article, you will find information about what an online business is, what the steps for the formation of an Online Business in the UAE are, what type of licenses you can acquire when creating this type of company and how we can help you become the successful owner of an Online Business in the UAE.

  1. What is an Online Business in Dubai
  2. How to start an Online Business in Dubai?
  3. Dubai Online Business Models
  4. E-commerce licenses in the UAE’S Mainland
  5. Benefits of having an Online Business in the UAE
  6. How can we help you start an Online Business in Dubai?

1. What is an Online Business in Dubai?

A Dubai Online Business, as its name indicates, is a commercial model in which money is earned online, either by offering services or selling products online. Online businesses can cover different areas; they can range from an online food store to private jet booking.

Whether you work for a multinational company or are a freelancer, maintaining a good online presence is necessary for the success of your business.

2. How to start an Online Business in Dubai?

Once you decide that a Dubai Online Business is the right option for you, you must follow these steps:

2.1 Select a product

Firstly, if you are a new entrepreneur, choosing a product or service to offer can be the most difficult step. Before choosing, you should think about:

  • What kind of products your target audience needs or is attracted to?
  • How profitable it is?
  • How well it will fit into the market niche?

Because your business is online, there are certain costs that you must take into account, for example, shipping fees, advertising costs, labor, etc. You must select products that can generate a profit of at least 50%.

2.2 Manufacturing

Once you have chosen the product or service that you are going to offer, you must start thinking about how you are going to source it. Searching for local suppliers and manufacturers, as well as connecting with their communication networks, is the first step when you need a supplier.

The market for Online Businesses in the UAE is quite competitive. Each company strives to deliver a quality product that meets consumer expectations. For this reason, you must make sure to associate with suppliers and manufacturers that will raise your name and meet the standards of your company and your customers.

2.3 Choose a brand name

When choosing a name for your company you should take into account the following aspects:

  • The name of your company cannot contradict the productive activity to which you are going to dedicate yourself. In other words, the name of your company must show the essence of it.
  • When you choose the name you must make sure that it has not been previously registered and that it is not protected by copyright by another business in the UAE.
  • The chosen name cannot be related to God, nor divine attributions in English, Arabic, etc.
  • Make sure your company name does not contain indecent or obscene words, and cannot offend the general public.

2.4 Choose the right location

When choosing the location of your Online Business in Dubai, you have the following options:

2.4.1. Mainland

Companies operating in the Mainland can freely conduct business across the UAE and in international markets. These types of companies receive their licenses from the Department of Economic Development (DED) and have the advantage of not having a visa limit for their employees, depending on the size of the offices. Also, they can carry out projects for the UAE government.

If you choose to establish your company on the Mainland, you will need a local agent. It is important to realize that our Online Business in the UAE cannot be registered as a Limited Liability Company (LLC)

2.4.2. Free zone:

On the other hand, companies established in the Free Zones can enjoy their low taxes for trading within the limitations of the Free Zone. Low taxes drive the export and import of products. These areas are characterized by the variety of activities that can be carried out in them.

If you choose to establish your company in a Free Zone you will not need a local agent.     And you will be able to register your business as a Limited Liability Company. Deciding between both options will depend on the nature of your Online Business and your public target.

2.5 Initial Approval

After choosing the desired jurisdiction, you must apply to the corresponding government entities, the following documents:

  • Colored passport photos
  • Passport copy
  • Application form

2.6 Start the process of your E-commerce trade license

Once the formation process of your E-commerce Business in Dubai is ready, you can apply for an E-commerce trade license. This license will depend on the nature of your company, the productive activities you carry out, and the chosen jurisdiction.

The Dubai authorities will be in charge of delivering your Trade License and the process will last approximately 7 business days. Also, you must renew this license every year.

During the license application process, you will also need to provide all social media related to your business. Keep in mind that if you decide to establish your online business in the Mainland, you must submit a Memorandum of Association (MoA) as part of the requirements to obtain your E-commerce Trade License.

2.7 Acquire visas

Having an E-commerce Business in Dubai gives you the opportunity to not need a physical office or be physically present in the United Arab Emirates. However, you will need a legal address to be able to operate in the UAE, according to the laws of the country. If you do not want to have an office in Dubai, you and your employees will need to have a visa.

The formation of an E-commerce Business in the UAE allows you to have a Visa valid for 3 years. It must then be renewed every year. The number of Visas you can acquire will depend on the size of your business and where your company is located.

2.8 Opening a bank account

Lastly, once you get your license and establish your company, you will be able to open a corporate bank account. To open an account at the bank of your choice, you must submit the following documents:

  • Visa copy
  • Business license
  • Passport copy
  • Emirates ID

3. Dubai Online Business models

There is a wide variety of Online Business Models and you can choose the one that is most related to the nature of your business. Some models are the following:

3.1 Business-to-consumer

It is the most common model for Online Businesses and includes the following:

  • Direct selling: In this model, customers buy products from online retailers.
  • Community-based: Social networks like Facebook create communities with common interests and help marketers and advertisers to sell their products directly to customers.
  • Subscription: Some companies charge customers a fee to access their content.

3.2 Business-to-business

In this model a business sells to another business directly, most of the time, the buyer resells a product to a customer.

3.3 Consumer to business

This business model applies to independent workers and freelancers who do work for companies or organizations. In this E-commerce model, the use of a website is very important, as it allows customers to post the work they need to be done.

3.4 Consumer-to-Consumer

This model works through an online marketplace that connects customers to negotiate goods or services. They earn money by making transactions or listing fees.

3.5 Dropshipping

In this model, the stores do not carry the stock of the products they sell.  Instead, they buy their products from a third seller and he is in charge of delivering the products directly. In this way, the seller does not have to deal with the products.

4. E-commerce licenses in the UAE’S Mainland

When starting the formation of an E-commerce Business in the UAE, you have to apply for a license in the DED, in the respective Emirate. All E-commerce trade licenses must have approval of the Telecommunications and Digital Government Regulatory Authority, which is in charge of regulating everything related to E-commerce Business. Some of the licenses issued by the UAE’S Mainland are the following:

4.1 The E-commerce License (Tajer Abu Dhabi)

This license is issued by the Abu Dhabi Department of Economics (ADDED) and allows online traders to add their virtual transactions to their existing licenses. Or they can also acquire a new license to conduct business through social networks and web pages.

Entrepreneurs who have this license can use their E-commerce mark (ETajer) and serial number to promote their products.

4.2 Dubai CommerCity (DCC) Free Zone

Dubai CommerCity is a free zone that seeks to promote E-Trade in the Middle East and North Africa (MENA). This area offers a unique opportunity for E-Commerce in that region and to promote small, medium, and large companies.

4.3 Etimad Domestic License from Sharjah

The Sharjah Department of Economic Development (SEDD) grants the Etimad license for businesses established in the home and for those virtual businesses through social networks.

Anyone over the age of 18 is eligible for this license, however, it is restricted to UAE Nationals residing in the Emirate of Sharjah.

Important to realize: This license does not allow the recruitment of staff.

4.4 Virtual Merchant License from Ras Al Khaimah

The Department of Economic Development (DED) in Ras Al Khaimah issues the E-Trader License to promote those businesses that are managed through Social Networks, smartphone applications, and web pages. Some activities to carry out under this license are the following:

  • Electronic Retail Business
  • Commercial and Real Estate Brokerage
  • Advisory
  • Information technology and computers

5. Benefits of having an Online Business in the UAE

Deciding to form an E-commerce Business in Dubai brings with it multiple benefits, some of which are the following:

  • Ownership of a Business: The different areas of the United Arab Emirates allow new entrepreneurs to maintain 100% ownership of their company, depending on the productive activity to which they are engaged.
  • No personal tax
  • Full profit repatriation: Companies can send all profits to their country of origin. This allows entrepreneurs to transfer 100% of their capital without any obstacles.
  • Bank account assistant
  • Residence Visa granted for 3 years
  • Low costs in the setup of the company
  • Easy and efficient trade license process

6.  How can we help you start an Online Business in Dubai?

Over the years, the United Arab Emirates has proven to be a world of possibilities for every area you are interested in. From forming a physical company in a Free Zone or deciding to undertake through social networks, the United Arab Emirates supports, assists, and encourages new entrepreneurs to invest in the country.

The process of forming an E-Commerce Business in Dubai can be tedious and even long-lasting if you do not know the laws of the United Arab Emirates.

Here at Connect Zone, we are your trusted agents, we will be the communication bridge between the corresponding government authorities and your company, we will take care of being your local agent (if you need it), we will accompany you in each step of the process of forming your company and we can even open a bank account for you.

Are you interested in learning more about starting an online business in Dubai & the UAE? You can contact us at the following email address: info@connectzone.ae where one of our advisors will answer all your questions.

Lastly, if you want to apply for one of many job vacancies or obtain a job in our agency, you can send your CV to thetalentpoint.com or you can contact the following email contact@thetalentpoint.com. Do not worry, we will not share or store your information in our database.