E-commerce is a rapidly growing industry sector worldwide, and Dubai is becoming a key global hub in this sector. According to EZDubai, The e-commerce market in Dubai is projected to reach USD 48.8 billion by 2028, with an annual growth rate of 11.52%. The COVID-19 pandemic has accelerated the growth of e-commerce, with businesses of all sizes in Dubai shifting to online and digital platforms.
This shift has led many entrepreneurs, business owners, and traders to think about starting an e-commerce business in Dubai. The process to obtain an e-commerce license in Dubai is simple, especially if you choose the cheapest e-commerce license in Dubai or the UAE.
To help you get started on the e-commerce business in Dubai, this article explains the e-commerce license, its benefits, and estimated cost. The company registration experts at Now Consultant help you obtain the cheapest e-commerce license by meeting all the requirements in compliance with government authorities.
What Is An E-Commerce License In Dubai?
An e-commerce license allows investors to conduct business activities on online and social media platforms. However, investors must meet specific requirements and criteria to ensure a smooth transition to operating an online business in Dubai.
The relevant government authorities in both mainland and Free Zone issue an e-commerce license for those looking to start e-commerce businesses in their desired jurisdiction in Dubai.
The e-commerce business allows you to connect with people worldwide, offering the potential for significant profits. Today, many people prefer to buy and sell goods and services from the comfort of their homes using the internet and social media. E-commerce is beneficial for both businesses and consumers.
Benefits of E-Commerce License in the UAE
An e-commerce license in the UAE offers several benefits, as listed below:
1. You can own 100% of your business without needing a local sponsor if you set up in a Free Zone.
2. Business owners can apply for a UAE residency visa.
3. No physical office is needed to start an e-commerce business.
4. There is no personal or capital gains tax.
5. The country has experienced logistics service providers to manage inventory, order fulfillment, and shipping.
6. There are excellent road, sea, and air networks for quick delivery.
7. The UAE offers high-quality payment services for convenient online shopping.
Cost of E-Commerce License In Dubai, UAE
In the mainland, the Department of Economic Development (DED) has introduced a cost-effective e-trader license priced at just 1,070 AED, making it the most affordable option available. However, there are certain terms and conditions to fulfill. In order to meet the requirements and secure your e-commerce license on the mainland, the experts at Now Consultant will assist you throughout the process.
In Dubai’s free zones, the cost of an e-commerce license starts at around 15,000 AED. This price is valid in small free zones and does not cover residency visas or additional facilities.
However, the actual cost of an e-commerce license in Dubai depends on several factors, including the type of license, the emirate where you operate, your business type, and structure.
Besides the license fees, you also need to cover additional costs such as:
- Physical store registration (if needed)
- Office rent
- Visa fees
- Specialized permits
- Medical and Emirates ID fees for investors
- Charges for foreign names, if applicable
- Medical insurance for the investor
- Any other government fees
For an accurate estimate of all costs for the incorporation of your e-commerce business, it is best to consult with a business setup expert such as Now Consultant.
Documents Required For E-Commerce License
Getting an e-commerce license in Dubai is simple, but you need to provide several documents, including:
- Articles of Association
- Website terms of use
- Business PAN Card
- Proof of identity and address
- Certificate of Incorporation
- Memorandum of Association (MoA)
- Business bank account
How To Get a Cheapest E-Commerce License In Dubai
There are five simple steps to get the cheapest e-commerce license in the UAE:
Step 1: Register a Company Name
In the first step, you register a particular name of your company. It is important that your chosen business name does not present any offensive or disrespectful remarks and does not be derogatory to any religion. You have to provide three name options to the authorities, and they will check their availability and confirm the final selection.
Step 2: Select a Business Jurisdiction
Dubai has established favorable business and financial regulations that support business growth. There are two jurisdictions: The free Zone and the mainland. Dubai has more than 40 Free Zones, each specializing in different industries and offering tax benefits, support services, and various other advantages, making them an appealing option for foreign investors.
In contrast to Free Zone companies, which require additional procedures to operate within the UAE, businesses established in mainland jurisdictions can trade directly within the UAE without needing a branch office.
It is important to understand the distinctions between these setups to determine which is best suited for your e-commerce business, as each has its own set of benefits.
Step 3: Choose Your Business Activities
With more than 2,000 business activities available, selecting the appropriate ones for your trade license is important. A company is permitted to carry out only the activities listed on its license, and non-compliance can lead to significant penalties from UAE authorities.
You can get guidance from business setup experts such as Now Consultant to help you choose the right business activities for your e-commerce company in the UAE.
Step 4: Apply for Initial Approval
Before proceeding with your e-commerce business setup, you must obtain initial approval from the DED if you have planned your business on the mainland. Those who are interested in establishing their business in the Free Zone must get approval from the relevant Free Zone authority. This initial approval allows you to apply for your e-commerce license in your selected jurisdiction.
Step 5: Submit E-Commerce Trade License Application
After obtaining initial approval, you can apply for the most affordable e-commerce license in the UAE. At this stage, experts at Now Consultant help you apply for your e-commerce business in order to meet the requirements for an error-free application process.
Cheapest E-Commerce License In Dubai:
The cheapest e-commerce license in the UAE ranges from AED 6,500 to AED 1,070. The price can vary based on factors such as the chosen jurisdiction, type of business, company setup, visa requirements, and other government fees.
The expert team at Now Consultant can help you through every stage of applying for an e-commerce license and setting up your company, ensuring your applications are precise and error-free. Our business setup experts make sure to provide you with the cheapest e-commerce license in Dubai.
FAQs:
How Long Does It Take To Get An E-commerce License?
It takes one to three months to get an e-commerce license in the UAE. The exact timeframe depends on how quickly you can provide all the required documents to the relevant authorities and meet the regulatory requirements.
Where Can I Get More Information And Assistance About E-commerce Business?
You can get more information and assistance about e-commerce business from Now Consultant. Our business setup experts guide you through the requirements and assist with the entire application process, helping you avoid unnecessary costs.
Can I Operate My E-commerce Business From Home?
Yes, you can operate your e-commerce business from home in the UAE as long as you comply with local regulations and licensing requirements. It is not necessary to have a physical office in Dubai or the UAE to start an e-commerce business.
Why Choose Now Consultant For An E-commerce License?
As Dubai’s e-commerce sector grows, getting an e-commerce license is significant for seizing opportunities in Dubai’s dynamic landscape. With the right e-commerce license and choosing the right business activities, you can establish your online presence, gain customer’s trust, and access various government support services.
Now Consultant provides fast and flexible e-commerce business setup services in the UAE. We guide you from choosing the right jurisdiction to obtaining approval for your e-commerce license from the relevant authorities.
Our experienced advisors will guide you through every step of setting up your e-commerce business in Dubai. We help you build a successful e-commerce business in Dubai that adheres to the relevant authorities’ regulations.
