E commerce license UAE
E commerce license in UAE is the trading license. It is like a physical business but carry out with the help of Internet. There are two basic roots of this business buyer and seller; who are sharing money as well as goods over the same medium. This business is called as online business, which also requires a similar license as usually obtained for proper business. E commerce license in Dubai is the process of doing business with a proper license but over the internet. A normal business can be done physically; and will be having a physical structure. While doing a normal business will only cover a small area and will give you a small profit. Now a day with the help of internet general public are connecting globally.
E commerce license in Dubai
There are many people who are doing their business through Internet; in different parts of the world from their own desk; In Simple words we can say that the facility of telecommunication has enhanced the capacity of people towards other various fields as well.
Dubai also supports online business by offering a license E commerce license in Dubai.
In old days the setup of a company were demanding the best local market; so it the beginning they were looking to take hold of the local market; and then slowly go for the big markets. But now Internet help a lot in connecting people with each other’s; from different part of the world to do business as well as they could do the payment online with the use of credit & debit card; and delivery of goods became so easy reaches to the customer.
So it is very simple to say that everything is change in a very fast way through internet; as we can take the example of E commerce license in Dubai which is focusing on online business; and it is leading your future business to success. The E commerce license in UAE plays a bigger role towards the online shopping; which is very fruitful for the people and carry a lot of benefits.
E commerce license in UAE
In 2017 Global Overview report shown some exciting statistics; more than half of the world’s population now commonly use the internet; almost two thirds have a smart phone; and one in five people are shopping online every days. The effect of this amazing digital connectivity on business is very huge. UAE people are also keen to shop online; with more than 90% of the UAE population having access to the internet. E-commerce business in UAE is now one of the fastest growing business sectors in the UAE.
How do I set up an E commerce license in UAE?
- The key steps to setting up E commerce license in UAE generally follow the same pattern: Determine the legal structure of your business; an Establishment, Limited Liability Company, or Foreign Branch
- Decide where to establish your business; in a Free Zone or On-Shore
- Register a trade name
- Apply for a E commerce license in UAE
- Set up a business bank account
- Arrange an office space lease
Our recent blog “E commerce license in Dubai” goes into complexity about each of these stages; so for this purpose we are writing this article to specify all the stage of e-commerce license in Dubai.
Trade Name for e-trade license in Dubai
Selecting a trade name for e-trader license in Dubai that people will remember; and it is important regardless of the nature of your business; but it is maybe even more serious for e commerce that does not have a physical presence in the UAE. Once you chose a trade name; then use the same name as your domain name; this will make your business easier to find online.
Licensing for e-commerce license in Dubai
So to setup an e-commerce license in Dubai you will have to take a license from the DED. The type of the license will be subject to the nature of the business activities; and if you choose to setup e commerce license in Dubai in a Free Zone; then the license will be issue from the relevant authority of that free zone only.
Office Space for e-commerce license in Dubai
If you are planning to trade online, then it may be a case that you have not think about leasing an office; however it is not possible to register an e commerce license in Dubai main land without it. Wherever you choose to open your company it is important to check the minimum office space requirements. For instance in Dubai, the minimum requirement for office space is 200 sqft.
If you choose to start E commerce license in Dubai Free Zone, there may be flexi desk options. Although these option are cheaper alternative at the opening; it is vital to consider that the size of your office; because it directly affect the number of visas obtainable under your license; therefore potentially limiting your number of employees.
Online Payment Gateway for E commerce license in UAE
If you are selling anything online, whether real or intangible products or services; you would have to set up a secure online payment gateway; so that to receive safe credit card, debit card and PayPal payments through your website. At the same time as this is a large expense for any new E commerce license in UAE; but taking this wrong will be risky to the success of your online business in Dubai. With a growing number of service providers and online payment options in the UAE; it is important to take the time to research this, and consider how these will suit your business and your budget.
Customs Duty for e-commerce license in Dubai
if you are bringing in products from other country and sell online; a custom duty of around 5% will be applicable to the trading goods.
As we have already this, that company in free zone is exempt from import and export duty. However, this would only be accurate if you are selling product within that Free Zone. So, if you get your e-commerce license in Dubai Free Zone and you want to sell product online to the main land market; then you will have to first appoint a local trader as we mention before; in which import taxes will be applicable.
To get your e-trader license in Dubai smoothly; you need to take an advice of professional.
Free Zone vs main land e commerce license in Dubai
Free zone is a cost effective option to setup e commerce license in UAE as compare to main land. But at the same time each one will offer its own particular advantages; also every free zone offer the same benefits; including 100% repatriation of capital and profits, 100% ownership, 0% corporate as well as 0% personal tax; import as well as export tax exemption, and no currency restrictions.
In October 2017, Dubai launches a new free zone Dubai Commerce City free zone; it is the only free zone which completely dedicated to e commerce business in Dubai. It is a joint venture between DAFZA and Wasl Asset Management Group; the project has a worth of AED 2.7 billion; and also it is well connected to major local and national highways. Its benefits include cargo as well as logistic services with easy access to land and sea ports; which will help minimize supply chain costs.
There is, one significant curb to this form of business setup in Dubai; that is a free zone company is not allows to trade outside of that free zone directly; and must appoint a local distributor in order to provide products to main land area.
Therefore, e commerce business in Dubai main land is likely to be a much more favorable option. The main difficulty for a foreign investor to setup an e commerce business in Dubai main land; is that a local sponsor must be a partner in the company; and also he will hold at least 51% share. As a company setup advisor; we will not only guide you in the process of setting up your business in the UAE; but will also provide you a very loyal local sponsor.