ECOMMERCE COMPANY SETUP IN UAE

The establishment of an eCommerce company in the UAE is fueled by advancements in technology, logistics, and banking infrastructure. Acquiring an eCommerce business license in the UAE is a straightforward process. Foreign investors have the option to set up their eCommerce company either on the mainland or in the Free Zones of the UAE. However, it is important to note that the process and cost of obtaining an eCommerce License may vary across different business jurisdictions. Therefore, investors must diligently follow the prescribed procedures to successfully obtain the desired eCommerce License in the UAE.

ECOMMERCE COMPANY SETUP IN MAINLAND OF UAE

For global investors looking to expand extensively into the UAE local market, setting up a mainland company is an excellent choice. By obtaining a General Trading License and an eCommerce License from the Department of Economic Development, entrepreneurs can seamlessly operate both online and offline businesses in the UAE. With an eCommerce license from the mainland, investors can establish an online shopping website, sell goods and services online, and conveniently deliver them throughout the UAE. Registering an eCommerce company in the UAE mainland offers numerous business benefits, including the flexibility to choose office space at desired locations, expand the workforce, secure larger warehouses, and more.

Entrepreneurs have the flexibility to choose office spaces anywhere in the UAE with affordable rents, ensuring profitable business operations. The initial setup fees encompass various aspects such as eCommerce license costs, Company Establishment card, office rent, and other documentation charges for legal translations and ministry approvals, if required.

With an eCommerce company in Dubai, investors have complete ownership while a Local Service Agent facilitates government liaisons and administrative tasks. The Local Service Agent is compensated annually and holds no authority over the company’s capital or operations. By acquiring the eCommerce License from DED, Dubai, investors can effortlessly sell goods online in the UAE and commence business operations either through physical office spaces or by utilizing a virtual company license.

ECOMMERCE COMPANY SETUP IN FREE ZONES OF UAE

Setting up an eCommerce company in the Free Zones of UAE is a highly sought-after business venture that offers entrepreneurs a cost-effective solution. By carefully selecting the appropriate Free Zone and obtaining the necessary eCommerce Company License, investors can tailor their operations to meet their specific needs. In order to effectively penetrate the local UAE market, eCommerce companies registered in the Free Zones must establish partnerships with online distributors or create seller accounts on popular online market portals, enabling seamless inventory transfers and facilitating sales.

The Free Zone eCommerce company has the eligibility to sell and deliver goods outside of UAE through online channels. Opting for an eCommerce Company setup in the UAE Free Zones is a prudent choice for cost-effectiveness. Businesses have the flexibility to upgrade to a larger office space based on their evolving requirements. With over 40 Free Trade Zones in the UAE offering eCommerce License options for investors, entrepreneurs face the challenge of selecting the most suitable package for their business. Pro Consultancy is here to provide comprehensive assistance throughout the company setup process for obtaining an eCommerce License in the UAE.

ONLINE SHOPPING & ECOMMERCE BUSINESS IN DUBAI

Investing in an Ecommerce License in the UAE presents a lucrative opportunity for business expansion, driven by the increasing demand for online shopping. The shift in customer mindset towards e-commerce has sparked a growing interest in exploring online shopping options.

As the world becomes more interconnected, consumers are placing greater trust in online shopping websites. It is projected that consumer spending via online retail platforms will experience significant growth in the coming years. According to reports, eCommerce transactions in the UAE are forecasted to reach AED 59 Billion in 2019, with an expected annual growth rate of 23 percent between 2018 and 2022.

ECOMMERCE LICENSE IN DUBAI

An eCommerce License in Dubai mainland is obtained through the Dubai Economy. To acquire this license in the UAE, a Local Service Agent is required. The process of obtaining the eCommerce License takes approximately 2 days from document submission to the authorities. Undoubtedly, the eCommerce License in Dubai is highly coveted among business license categories. As technology continues to advance and online shopping becomes more prevalent, the eCommerce sector in the UAE is experiencing steady growth.

For entrepreneurs aiming to enter the local UAE market and expand globally to the GCC, Middle East, and Africa, obtaining an eCommerce License in Dubai and establishing a business with a warehouse facility and office space in the UAE mainland is an ideal choice.

ECOMMERCE LICENSE IN DUBAI FROM DUBAI ECONOMY

A Dubai Ecommerce License empowers companies to sell goods online and accept payments seamlessly. This opens doors to expand into international markets and diverse product categories, depending on the business plan and nature of operations.

One of the key advantages of obtaining an Ecommerce License from Dubai Economy is the flexibility to rent office space anywhere in the mainland of UAE. Additionally, it allows investors to rent warehouses in Dubai’s mainland for efficient management of e-commerce inventory. However, foreign investors seeking an e-commerce License from Dubai Economy must comply with the requirement of appointing a Local Service Agent, subject to an annual fee.

ADVANTAGES OF AN ECOMMERCE COMPANY IN THE DUBAI MAINLAND

•   The Ecommerce License allows investors to store products in warehouses and sell them online in the UAE market. This license provides an opportunity for efficient inventory management and seamless online sales operations.
•   In addition to the e-commerce license, investors have the option to obtain a general trading license. This allows them to explore a wider range of selling opportunities in the UAE, both digitally and physically. By diversifying their licensing options, investors can maximize their potential for success in the market.
•   A 5% VAT will be charged on all transactions in UAE as part of the VAT Law.
•   The import of products to be sold in UAE will incur a 5% Customs Duty at the seaport or airport depending on the mode of sending the consignment.
•   A low-cost office setup is available in the mainland of Dubai. Similarly, low-cost warehousing and storage options.
•   Easy availability of logistics support and distribution agents for door-to-door delivery.
•   Enhance your business’s potential for growth by effortlessly expanding your operations. With the ability to hire additional staff and introduce new business activities under your existing e-commerce license, you can unlock limitless possibilities.

ECOMMERCE LICENSE FROM DUBAI FREE ZONES

The Ecommerce License from Dubai’s Free Zones presents a cost-effective opportunity for foreign investors. These Free Zones offer numerous business advantages, including 100% foreign ownership, 100% profit repatriation, exemption from customs duty, streamlined business setup, convenient access to airports and seaports, seamless customs clearance, and much more. The following are the Free Zones in Dubai that provide the option for an ecommerce license.

1. DUBAI AIRPORT FREE ZONE

Dubai Airport Free Zone (DAFZA) stands as one of UAE’s most esteemed Free Zones, providing global investors with an exclusive e-commerce license at highly competitive rates. DAFZA offers a plethora of lucrative business benefits, encompassing state-of-the-art office spaces, warehouse facilities, an in-house customs department, streamlined company registration, efficient UAE residency visa processing, seamless bank account opening, and much more. Experience the epitome of excellence and opportunity at DAFZA.

Investors have a range of office spaces to choose from at DAFZA. Whether it’s a shared desk or an executive office with 50 sq.m, we have the perfect space for entrepreneurs. Additionally, we offer a variety of warehouse options for safe inventory storage, crucial for running an e-commerce store. For more information on our latest company formation packages and warehouse availability, reach out to our team today!

2. DUBAI COMMERCITY FREE ZONE

Dubai CommerCity, a specialized Free Trade Zone, has been meticulously designed to cater to the e-commerce Market needs in the Middle East and North Africa (MENA) region. Established as a joint venture between the Dubai Airport Free Zone Authority (DAFZA) and the Wasl Asset Management Group, it aims to provide a comprehensive solution for all e-commerce requirements in the UAE. This Free Zone offers an ideal ecosystem for global entrepreneurs to effortlessly launch and operate their e-commerce businesses, thereby enabling them to introduce their products to the UAE market.

3. IFZA

The International Free Zone Authority has partnered with the Dubai Silicon Oasis Authority to offer entrepreneurs and global investors an affordable solution for incorporating their companies in Dubai. The Free Zone provides top-notch business solutions and state-of-the-art infrastructure, catering to companies of all sizes and facilitating a smooth start to their operations in Dubai. DSOA-IFZA, one of the fastest-growing Free Zones in the UAE, offers a wide range of business licenses to investors.

ECOMMERCE LICENSE IN DUBAI FREE ZONES – KEY HIGHLIGHTS

•   One significant benefit of obtaining an e-commerce license from the Free Zone is the option to acquire a virtual license without the need for physical office space. This allows businesses to operate efficiently while enjoying the perks of a flexible working environment.
•   For start-ups, freelancers, or entrepreneurs to test the market and start with their startup journey, a free zone e-commerce license package is an ideal choice.
•   Moreover, numerous free zones in the UAE provide tailor-made warehouse facilities to efficiently store imports and streamline trade operations.
•   Free Zone Companies are eligible for the waiver of Customs Duties during imports into the Free Zone.
•   Also, few of the Free zones in Dubai have in-house Customs checks and helps in faster clearance of goods into and out of the Free Zones.

For further information regarding the Ecommerce License in Dubai Free Zones, reach out to our knowledgeable team. We are here to assist you with any inquiries you may have.

STEPS INVOLVED IN GETTING YOUR E-COMMERCE LICENSE IN DUBAI

•   Decide the legal structure (single shareholder, multiple shareholders) and jurisdiction of your business (Free zone or Mainland)
•   Decide your business activity & office type (Flexi-Desk, Executive Office, etc.)
•   Register the trade name (Ensure it does not resemble any existing brand)
•   Application form filling and getting approvals
•   Make the required payment for obtaining the E-commerce License in Dubai
•   If registering with Dubai Economy, prepare the Memorandum of Association (MOA) with the Local Sponsor
•   Register a physical office and get the approvals
•   Sort out import/export requirements and customs registration
•   Open a Corporate Bank Account, get Residence Visa, and set up the Payment Gateway for initiating the sale

ECOMMERCE LICENSE FROM SHARJAH FREE ZONES

Sharjah boasts several premier Free Zones that offer e-commerce Licenses at highly competitive rates. These Free Zones not only provide entrepreneurs with a robust infrastructure but also offer comprehensive business support, simplifying the process of establishing an e-commerce business in the region.

1. SHARJAH MEDIA CITY

Sharjah Media City is a highly dynamic Free Trade Zone in the Emirate of Sharjah, offering a plethora of business licenses to both start-ups and global investors.

Entrepreneurs often opt for the E-commerce License, a popular category issued by Sharjah Media City. This Free Zone provides an extensive range of business support services, enabling start-ups to effortlessly expand their business horizons.

The business ecosystem within SHAMS Free Zone is tailor-made for e-commerce companies to flourish. With well-connected transport links and robust logistic support, this Free Zone emerges as the perfect choice for e-commerce ventures. Its strategic proximity to the Sharjah International Airport and Khalid Port positions it as a major hub, especially for companies eyeing international markets, import-export operations, and more. Simply put, SHAMS is the ideal destination.

2. SPC FREE ZONE

The SPC Free Zone in Sharjah is a brand new Free Zone that offers a diverse range of business activities for establishing desired businesses in the UAE. This Free Zone boasts state-of-the-art office spaces and specialized warehouse facilities, tailored to meet the unique needs of entrepreneurs.

Located in a strategic position, the SPC Free Zone is the perfect destination for starting an e-commerce company. It enjoys close proximity to the Sharjah International Airport and the Sheikh Mohammed Bin Zayed Road (E311), providing seamless connectivity to the rest of the UAE and GCC markets. For e-commerce players seeking a hassle-free setup and smooth business operations in the region, the SPC Free Zone is the ultimate choice.

REQUIRED DOCUMENTS

•   Passport/Visa copies of the shareholders
•   Copy of sponsors passport/Emirates ID
•   Local Service Agreement (for Mainland Company Setup in Dubai)
•   No Objection Certificate from relevant authorities (if any)
•   Memorandum of Association, Shareholder Resolution, and other supporting documents (if any)
•   Company Registration Form from the desired Free zone or the Dubai Economy
•   Lease agreement or Tenancy Contract (if any)

E-COMMERCE SUPPORT SYSTEM

The eCommerce support system in the UAE is experiencing significant growth, with more companies registering, new warehouse spaces being added, and advancements in technology infrastructure. From logistics assistance and payment solutions to order management and technology innovations, the eCommerce support system is continuously evolving.

For an eCommerce company to thrive and endure, it is crucial to have a robust eCommerce support system. This encompasses all the necessary support services to effectively serve customers and ensure their satisfaction.

1. SETTING UP A PAYMENT GATEWAY

Payment gateways are indispensable for e-commerce companies, providing secure and seamless payment solutions through credit and debit card transactions. Additionally, implementing the Cash-on-Delivery method in specific cases is also crucial.

Pro Consultancy has joined forces with Network International’s Online Payment Gateway to streamline online transactions for us and our esteemed clients. In addition to facilitating seamless payments, they offer cutting-edge Point of Sale Machines and integrated payment solutions in collaboration with local and international banks based in the UAE.

2. LOGISTICS & DISTRIBUTION

Logistics and distribution are vital business components for online shopping companies. Efficiently storing products in warehouses and ensuring timely availability for sale are crucial. Equally important is the seamless delivery of sold goods to customers. Success in the online shopping space hinges on selecting the right warehouse and distribution network.

3. WEBSITE & MOBILE APPLICATION

To broaden the market and attract a larger audience, it is crucial to develop a robust website that features comprehensive product listings, a user-friendly layout, and a seamless checkout process. Additionally, considering the current high rate of mobile usage, having a dedicated e-commerce mobile app is essential for a successful online shopping experience.

HOW PRO CONSYLTANCY CAN HELP YOU?

Let us help you choose the perfect company formation package. Benefit from expert consultation on selecting the right e-commerce company formation package, including the ideal business jurisdiction, suitable business activities, office type, and comprehensive supporting services.

Start your dream e-commerce company effortlessly! Get exclusive discounts on our Ecommerce + General Trading License Combo Package. Connect with our expert business consultants to learn more about this amazing opportunity!