How to Setup an Ecommerce Business in UAE 2022   

How to setup an Ecommerce business in UAE 2022 

Table of Contents

E-commerce businesses mainly refer to businesses involved in dealing with services, goods, and funds over the internet. With the influx of media platforms and social media sites; founding and establishing an e-commerce business has become easy and crucial in today’s marketplace.    

The growth of the internet has given an exponential boom to e-commerce businesses. UAE with its strategic location, one of the world’s best seaports and airports along with a diversified economy has attracted many business setups to choose UAE as their business hub. The more promising UAE is for businesses and especially for establishing your e-commerce business centre, the more challenging it is when it comes to e-commerce licensing, company formation, PRO requirements, VAT policies, etc.    

Why opt for an E-commerce Business Setup in UAE?   

A lot of investors from across the globe choose UAE and Dubai as their business set-up centres. Keeping in view the multifaceted geographical advantages of the region and capitalizing it to the maximum; investors and business owners are keen to establish their Business Setup in UAE. Some of the main features that attract companies and businessmen to start their business setup in the UAE region are:   

  • Well-developed Country   
  • Excellent infrastructure   
  • Diversified economy   
  • Ideal Strategic location
  • Cosmopolitan region
  • Well-connected to other countries
  • Thriving local market
  • Trading hub
  • Friendly business environment
  • Tourism Hub
  • Strong Banking system   
  • State-of-the-art technology   
  • Stable government   
  • Established Law and Order   
  • Booming E-commerce Industry   
  • Tax-Free Zones   
  • Minimal taxation   
  • Long-term Residency Visas    
  • Secure and safe environment   

Prerequisites For Business Setup in UAE  

Any business owner or company that intends to set up a company or even wants to establish an e-commerce business in Dubai and UAE requires to fulfill legal and official formalities set by the UAE and Dubai government entities.    

In order to sustain the cutthroat competition of the Dubai marketplace, some basic steps and prerequisites need to be met before you join the corporate sector of UAE as an e-commerce business owner. Here are the 6 basic steps you need to meet before setting up your business in UAE:  

  • Choose Your Business Activity   
  • Selecting Best Name for Your Company    
  • Finalizing all Incorporation Paperwork   
  • Applying for E-commerce Business License   
  • Opening of A Bank Account   
  • Processing Of Visa   

Location Options for Registering E-commerce Business in UAE  

E-commerce business owners can choose from either of the three business registration options depending on where they want to locate their business.    

  • Mainland Business Setup   
  • Free Zone Business Setup   
  • Offshore Company Formation    

Deciding where to locate your company in UAE and Dubai is a crucial step.  Business type, pricing, workspace requirements, employment possibilities, funding costs, company’s operations, and a lot of other factors significantly influence the decision of selecting the right zone for your business. Professional advice from a Dubai business formation advisor is highly recommended to help you select the right zone for your business set up to gain maximum out of your business venture.   

Types of E-commerce License in Dubai   

With the global expansion of e-commerce businesses, several investors and business owners have joined the e-commerce business to explore the unlimited opportunities of the e-commerce industry.    

3 main types of E-commerce licenses are introduced by the Dubai Department of Economic Development (DED) for the e-trading activities within Dubai and UAE. A brief intro of these licenses is as follows:   

1. E-Trader License   

The E- Trader license is issued and monitored by the Department of Economic Development (DED). Investors planning to sell online their services and products can apply for this E-Trade License.     

 Another restriction for E-Trade license holders is that they are not allowed to open a physical office space or selling point/shop under this license. Single ownership is a must for acquiring this license.    

2. Portal License   

Portal License is applicable to non-UAE nationals who want to set up their e-commerce business in Dubai. The Portal License gives you the opportunity to link buyers and sellers through your online e-commerce business.   

3. Virtual Company License   

Dubai Economy and DIFC has recently introduced a Virtual Company License, which allows non-residents of UAE and overseas businessmen to carry on their commercial activities without any hurdle.    

Currently, the Virtual Company license is only limited to business activities revolving around designing, advertising, printing, and computer programming.    

Read More: 5 Rules of Long Term Business Success

How to Get an E-commerce License in Dubai?   

E-commerce license Dubai is the trade license that you require to start and successfully run all your business activities in Dubai and UAE.   

For applying for an E-commerce license in Dubai one needs to submit the following documents to the Department of Economic Development in Dubai.    

  • No Objection Certificate (NOC) from the relevant authority.   
  • Local service agreement or civil works agreement.   
  • Copies of the passports of all the shareholders.   
  • Draft of an MOA (Memorandum of Association).   
  • Copies of the visas of all the shareholders.   
  • Copies of the sponsors’ Emirate IDs.  

The department of Economic Development in Dubai may demand the submission of some other legal documents depending upon the nature of the business.    

Summing Up   

The goal of a flourishing and booming e-commerce business setup in the UAE can be achieved by implementing the right policies, strategic planning, and the assistance of a trusted corporate service provider. A professional, reliable, and trustworthy Dubai business consultant ensures opportunity, sustainability, and mobility for your e-commerce business setup.

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