If you’re considering starting an e-commerce business in Dubai or any other Emirate in the UAE, this guide will provide you with the essential information to navigate the process and become a part of the flourishing online retail industry.
The UAE’s booming e-commerce market is attracting entrepreneurs seeking an e-commerce license in Dubai.
With a staggering USD 3.9 billion market value in 2020 and a projected USD 8 billion value by 2025, the potential for growth and success is undeniable.
Join the wave of aspiring online business owners capitalizing on this lucrative opportunity.
Step 1:
Prepare the required details and documents such as company name, business activity, passport copy, share ratio, contact information of shareholders, and photos if necessary.
Step 2:
Submit the documents to your free zone or mainland jurisdiction. Make the necessary payment to initiate the application process. The cost of an e-commerce license start from AED 5,750.
Step 3:
Wait for the initial approval and issuance of your license. Digital documents will be sent to you. Original documents may be provided later by some free zones.
Step 4:
Begin the visa application process if your e-commerce license package includes visas.
This can be done after the issuance of the immigration card.
The following free zones in the UAE offer an e-commerce license:
1. Dubai Multi Commodities Centre (DMCC)
2. Dubai World Trade Centre (DWTC)
3. Dubai South
4. Fujairah Creative City
5. Ras Al Khaimah Economic Zone (RAKEZ)
6. Sharjah Media City (SHAMS)
7. Sharjah Research Technology and Innovation Park (SRTIP)
In addition to free zones, mainland jurisdictions also provide e-commerce licenses. Here are some options offered by different mainland jurisdictions:
Dubai: eTrader license for UAE and GCC nationals living in Dubai, and general trading license.
Abu Dhabi: Tajer Abu Dhabi license for UAE and GCC nationals and residents, supporting different legal structures.
Sharjah: Eitimad license for home-based and online businesses operated by UAE nationals in Sharjah.
Ras Al Khaimah: Virtual Merchant License for UAE nationals living in Ras Al Khaimah, covering various business activities.
The cost to start an e-commerce company can start from AED 5,750, but the total cost may vary based on specific requirements and additional services needed.
In most cases, free zones in the UAE do not require an office space for e-commerce companies. However, it is advisable to check the requirements of the specific free zone you are considering.
The trade license for an e-commerce company can be issued within 24 hours, provided that all the required documents are in order.
The best free zone for e-commerce depends on your unique business requirements, product, target market, and target audience. Consider factors such as sector-specific free zones versus generalist free zones to find the one that aligns with your business goals.
Operating an e-commerce shop without a license can result in fines of up to AED 50,000 per transaction.
E-commerce businesses must register for VAT if the value of their taxable supplies and imports exceeds AED 375,000 per year. Optional VAT registration is available for businesses with supplies and imports exceeding AED 187,500 per year.
An eTrader license is available to UAE and GCC nationals living in Dubai and allows business activities through social media channels. Non-UAE or non-GCC nationals may not be eligible for an eTrader license. An e-commerce license, on the other hand, permits selling goods and accepting payments through an e-commerce website.
A valid trade license is required to conduct any commercial activity in the UAE, including operating an e-commerce website.
Yes, with an e-commerce license, you can sell to customers throughout the UAE. However, for sales in the mainland, you may need to work with a distributor.
Yes, multiple businesses related to e-commerce activities can operate under a single e-commerce license. However, unrelated business activities cannot be conducted under the same license.
To comply with regulations and protect businesses and consumers, an e-commerce license is required to legally sell physical goods in the UAE. Selling physical goods online without an e-commerce license is not allowed.
To comply with regulations and protect businesses and consumers, an e-commerce license is required to legally sell physical goods in the UAE. Selling physical goods online without an e-commerce license is not allowed.
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