How To Obtain an Online Business License In Dubai, UAE?

Person Running Online Business In UAE

Dubai’s location, infrastructure, and policies make it a perfect hub for online business and E-commerce. Dubai boasts a top internet penetration rate and is a leader in the B2C eCommerce market, with over 60% of GCC online shoppers. 

The demand for online business licenses is high due to the convenience of 24/7 online shopping and services. Getting the right license is crucial for legal compliance and avoiding financial issues. Now Consultant supports businesses in Dubai for getting online business licenses and expanding their business network across the globe.

Documents Required For An Online Business License:

To establish your business online, the Department of Economic Development mandates certain documentation and essential information, including:

  • Investor’s passport copy
  • Copy of the local sponsor’s passport (if relevant)
  • No-Objection Certificate (NOC) for shareholders employed in a UAE company
  • Emirates ID copy
  • DED registration application
  • Attested tenancy contract (if any)
  • Attested Memorandum of Association.

Types of Online Business Licensing in UAE:

There are various online business licensing options available in the UAE, and the choice depends on the nature of your planned E-commerce venture.

1. Portal license

For businesses acting as intermediaries, facilitating transactions between buyers and sellers, the appropriate license in the UAE is known as a Portal or E-marketplace license.

This licensing option is readily available in various free zones. 

2. E-commerce license

The license is used for e-commerce setup, chosen by companies aiming to sell their products through their websites, whether they specialize in a few items or operate as large online retailers.

3. Commercial or Service License

Even without an e-commerce license, you can still sell things and provide services online using a commercial or service license. 

Whether it’s educational training, marketing consultations, or selling goods, you can conduct various online businesses with the license.

4. E-trader license

The most economical method to set up your e-commerce company in Dubai is an e-trader license. This license involves an AED 1,070 issued by the Dubai Department of Economic Development.

5. Freelance license

Freelancers in the UAE can now obtain a freelance license, allowing them to promote and offer services online both locally and internationally. 

This option is ideal for various freelancers such as designers, IT professionals, tutors, personal assistants, and more.

Process To Get An Online Business License In Dubai, UAE:

Setting up a company in Dubai might seem complex, but by following a straightforward step-by-step process, it can be more manageable. 

Step 1: Choose a Name for your Company.

Choose a name for your company that adheres to UAE regulations, and ensure it’s not already in use by prominent organizations.

Step 2: Choose Between a Free Zone or a Mainland license.

Secure your business license from a free zone to enjoy benefits such as complete profit repatriation, exemption from corporate tax, full ownership, and no customs fees.

While mainland businesses can serve both local and international markets.

Step 3: Submit your Application for an Online License

Once you’ve chosen your location, apply for a Dubai e-commerce license. In order to get a mainland license, submit your application to the Department of Economic Development (DED), the pertinent licensing authority.

Opting for a free zone business. Apply directly to your chosen free zone authority.

Step 4: Proceed with your Visa Application.

Upon approval of your license application, proceed to apply for a UAE visa. 

At the same time, you have the option to expand the application to encompass visas for both your staff and family members.

Step 5: Establish your Business Bank Account.

Once your license is secured, the initial priority is to open a business bank account. Operating in the UAE necessitates having an active business account.

Online Business License Cost In Dubai, UAE:

Online business license cost varies with mainland and free zones set by the Department of Economic Development (DED) and free zone authority respectively.

Mainland License Cost:

The DED offers an e-trader license at a competitive price of AED 1,070, but it comes with specific terms and conditions. 

Free Zone License Cost:

In free zones, E-commerce licenses in Dubai start from AED 15,000, applicable to small free zones and excluding residency visas or facilities.

Besides the license fees, additional expenses include:

  • Registration for a physical store
  • Office rent
  • Visa costs
  • Investor’s medical and Emirates ID expenses
  • Investor’s medical insurance fee.

The overall expenses fluctuate depending on factors like business type, model, size, and structure. Each Freezone imposes its own licensing fees and administrative charges.

Benefits of Online Business License in Dubai:

The following are some of the significant advantages of acquiring an online business license in Dubai:

  • Enhances trust and business success with a Dubai online business license.
  • Ensures legal compliance, offers peace, and avoids issues.
  • Accesses broad local and global markets in Dubai.
  • Online business licenses enjoy zero corporate or personal taxes in free zones.
  • Positions your business for success in Dubai’s thriving marketplace.
  • Requires minimal capital investment.
  • Lowers operating costs.
  • Allows 100% foreign ownership.
  • Overcomes geographical limits.
  • Features a secure, modern banking system.

FAQs:

Do I Need a Business License To Sell Online In Dubai?

Yes, you need a business license from the Department of Economic Development (DED) in Dubai to sell online. It is a mandatory requirement for conducting any online business activity in the UAE.

Can You Renew Your Online Business License?

Yes, you can renew your online business license through the DED e-Services Portal, with the added benefit of tracking your application status.

How Can Now Consultant Help You?

In Dubai’s growing online business landscape, obtaining the right license is key for opportunities, trust, and government support. For a seamless journey, Now Consultant provides full support for E-commerce businesses, guiding you through online licensing and beyond.

Our expert team ensures you have the knowledge and assistance to establish a successful online business business in Dubai. Now Consultant simplifies intricate regulatory procedures, and licensing, to ensure a smooth process for launching new online businesses or expanding your digital presence across the globe.

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