Ecommerce License in UAE
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Ecommerce License in UAE

Ecommerce License in UAE

Ecommerce License in UAE is the most in-demand business license category with a positive growth opportunity. Ecommerce Business has become the most thriving business model in UAE. With the advanced technology infrastructure, logistics network in the UAE, and a growing consumer demand there is a surge in the Ecommerce Licenses in the region.

Many new business are opting for eCommerce license in UAE to tap into the online business space and set their business on a growth phase. The growing internet adoption and changing consumer behaviour makes eCommerce business sector a promising one for investors to setup their base.

Avail E-commerce license cost in UAE for 1 Visa Quota starting from AED 11,500.

eCommerce Company Setup in UAE

eCommerce Company Setup in UAE is driven by technology, logistics, banking infrastructure. It is a straightforward process to obtain an eCommerce business license in UAE. The foreign investor can either open the eCommerce company on the mainland or in the Free Zones of UAE. The process and cost of eCommerce License across the business jurisdiction vary and the investors must follow a certain procedure to obtain the eCommerce License in UAE.

eCommerce Company Setup in Mainland of UAE

For global investors wishing to expand extensively to the UAE local market the mainland company setup is an ideal choice. Taking a General Trading License along with an eCommerce License from the Department of Economic Development enables the entrepreneur to start operating an online as well as an offline business in UAE. Investors can open an online shopping website, sell goods and services online and deliver it to the mainland of UAE with the eCommerce license from the mainland. There is a host of business benefits in registering the eCommerce company in the UAE mainland such as flexibility in taking office space at the desired location, adding more staff, taking larger warehouses, and more.

The Entrepreneurs can choose office spaces anywhere in UAE where the rents are low and operate the business profitably. The initial company setup fees will include the eCommerce license cost, Company Establishment card, office rent, and other documentation charges for legal translations, ministry approvals (if any).

The eCommerce Company in Dubai is 100% owned by the investor and there will be a Local Service Agent for liaising with the Government and Administrative tasks. There is a yearly payment for the Local Service Agent and they will have no control over the capital or operations of the company. By obtaining the eCommerce License from DED, Dubai the investor can sell goods online in UAE without any hassles and start the business operations in full fledge by having an office space or operate using the virtual company license.

eCommerce Company Setup in Free Zones of UAE

eCommerce Company Setup in the Free Zones of UAE is one of the most popular business activities that come at a relatively low cost for entrepreneurs. Investors can choose the right Free Zone and apply for the eCommerce Company License based on their specific requirements. An eCommerce company registered in the Free Zones will have to partner with an online distributor or open a seller account with the online market portals to initiate the inventory transfer and register a sale in the local UAE market.

The Free Zone eCommerce company is eligible to sell and deliver goods outside of UAE via online channels. To keep the overall cost low, setting up an eCommerce Company in the UAE Free Zones is the right choice. Businesses can always move to a large-scaled office based on their requirements and demands later. There are more than 40 plus Free Trade Zones in UAE that offer an eCommerce License for investors. Hence, it is quite a challenge for the entrepreneur to pick the right eCommerce License Package for their business. AURION will assist you with the end-to-end company setup process for an eCommerce License in UAE.

Online Shopping & Ecommerce BUSINESS in Dubai

Online Shopping in UAE

Ecommerce License in UAE is a lucrative business investment opportunity resulting in fast market expansion due to the growing demand for online shopping. The customer mindset towards online shopping and e-commerce is changing and more and more people are ready to explore online shopping options.

The world is getting more connected and consumers are trusting online shopping websites more. The consumer spending via the online retail platform is expected to see significant growth in the coming years As per reports the eCommerce transactions in the UAE are forecast to AED 59 Billion in 2019 and expected to grow at 23 percent annually between 2018 to 2022.

Ecommerce License in Dubai

An eCommerce License in Dubai mainland is obtained from the Dubai Economy. For obtaining the eCommerce License in UAE, a Local Service Agent is required. The eCommerce License can be obtained within 2 days from submitting the documents to the authorities. eCommerce License in Dubai is one of the most sought-after business license categories. With the growth of technology and online shopping possibilities, the eCommerce sector in UAE is witnessing steady growth.

Hence for entrepreneurs aiming to enter the local UAE market and expand to GCC, Middle East, Africa, and globally, getting an eCommerce License in Dubai and opening a business with a warehouse facility and office space in the mainland of UAE is a perfect choice.

Ecommerce License in Dubai from Dubai Economy

Ecommerce License in Dubai will enable a company to undertake selling of goods via the internet and collect online payments in return for the product sale. The scope of Ecommerce business can be expanded to international markets and diverse categories depending on the company’s business plan and nature of business.

The key aspects of Ecommerce License from Dubai Economy is the flexible option to rent an office space anywhere in the mainland of UAE. Also, E-commerce License from Dubai Economy will enable the investor to rent a warehouse anywhere in the mainland of Dubai to store the goods for e-commerce sales. However, for a foreign investor to obtain an e-commerce License from the Dubai Economy, the appointment of a Local Service Agent for a yearly fee is part of the requirement from Dubai Economy.

Advantages of an Ecommerce Company in the Dubai Mainland

  •   Ecommerce License enables the investor to Store the products in the warehouse and sells online in UAE market
  •   The investor can opt for a general trading license too along with the e-commerce license. Thereby, expanding the possibilities of selling in the UAE through the digital and physical way.
  •   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.
  •   More flexibility to expand into full-fledged business easily by hiring more staff and adding more business activities to the existing e-commerce license.

Ecommerce License from Dubai Free Zones

Ecommerce License from the Free Zones in Dubai is a cost-effective option for foreign investors. Free zones of Dubai offer the investors umpteen business benefits such as 100% foreign ownership, 100% profit repatriation, no customs duty, ease business setup, easy access to airports & Seaports, easy customs clearance, and more. Following are the free zones in dubai that offers ecommerce license.

1. Dubai Airport Free Zone

Dubai Airport Free Zone is one of the most prestigious Free Zones in UAE that offer exclusive e-commerce license in UAE for global investors at highly competitive rates. There are huge business benefits that DAFZA is offering the investors including state-of-the-art office space, warehouse facility, in-house customs department, easy company registration and UAE residency visa processing, bank account opening, and more.

There are various office spaces available for the investors to choose from. From Shared-Desk to executive office with 50 sq.m office, DAFZA has the perfect office space for entrepreneurs. Along with the office space availability, there is ample choice for the warehouse space to choose for safe storage of inventory to run the e-commerce store. To know more about the latest company formation packages and warehouse availability, connect with our team right away!

2. Dubai CommerCity Free Zone

Dubai CommerCity is a specialized Free Trade Zone that is tailor-made to support the e-commerce Market requirements in the Middle East and North Africa (MENA) region.

The Dubai CommerceCity is a joint venture between the Dubai Airport Free Zone Authority (DAFZA) and the Wasl Asset Management Group. It is aimed to be a one-stop solution for all e-commerce requirements in UAE. The Free Zone offers a perfect ecosystem for global entrepreneurs to launch their products in the UAE by setting up and operating an e-commerce business in UAE.

3. IFZA

The International Free Zone Authority has Co-branded with the Dubai Silicon Oasis Authority for providing entrepreneurs and global investors a cost-effective Company Incorporation Solution in Dubai.

The Free Zone comes with world-class business solutions and infrastructure facilities for all sizes of companies to easily start their operations in Dubai. IFZA is one of the fastest-growing Free Zone in Dubai with a wide range of business licenses offered to investors.

Ecommerce License in Dubai Free Zones – Key Highlights

  •   One of the major advantages of an e-commerce License from the Free zone is opting for the virtual license without an office space.
  •   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.
  •   Also, most of the Free zones in UAE offer customized Warehouse facilities to store your imports and facilitate trade.
  •   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.

To know more about the Ecommerce License in Dubai Free Zones, talk to our team.

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

There are few top Free Zones in Sharjah offering e-commerce Licenses at the most competitive rates. Also, the Free Zones provide a perfect infrastructure and business support for entrepreneurs for easily setting up their e-commerce business in the region.

1. Sharjah Media City

Sharjah Media City is one of the most dynamic Free Trade Zone in the Emirate of Sharjah. It offers various business licenses to start-ups and global investors.

E-commerce License is a popular License Category issued by Sharjah Media City for entrepreneurs. The Free Zone offers a wide range of business support services for start-ups to easily scale up their business reach.

The business ecosystem in SHAMS Free Zone is perfect for e-commerce companies to prosper. The well-connected transport links and logistic support of the Free Zone make it a perfect choice for e-commerce companies. Situated in proximity to the Sharjah International Airport and the Khalid Port makes the Free Zone a major hub for e-commerce companies to set up their base. Especially, for companies aiming at the international markets, import-export, etc., SHAMS is the ideal choice.

2. SPC Free Zone

The SPC Free Zone in Sharjah is the newest Free Zone offering a wide range of business activities for starting the desired business in UAE. The Free Zone has sophisticated office spaces and specialized warehouse facilities for entrepreneurs to fulfill their business requirements.

It is the perfect place to start an e-commerce company due to the strategic location of the Free Zone. Situated close to the Sharjah International Airport and the Sheikh Mohammed Bin Zayed Road (E311), it has a perfect transport link to the rest of the UAE and GCC markets. For e-commerce players to easily set up and conduct business in the region, SPC Free Zone is the ideal 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

ECommerce support System in UAE is growing with more companies getting registered, the addition of new warehouse spaces, changing technology infrastructure, etc. From logistics support, to payment transfer solutions, to order management, technology, and more the eCommerce Support system is evolving on the go.

For an eCommerce company to survive and sustain it is essential to have a robust eCommerce support system. It includes all the allied support services required for an eCommerce company to serve its customers effectively.

1. Setting up a Payment Gateway

Payment Gateways are essential and must-have for e-commerce companies. Integrated secured payment solutions including credit and debit card transactions are the most convenient. Also, in certain cases, the Cash-on-Delivery method too must be implemented.

Aurion has partnered with Online Payment Gateway from Network International for facilitating all online transactions for us and our clients. They also provide Point of Sale Machines and integrated payment solutions by linking with the local & international banks in the UAE.

2. Logistics & Distribution

One of the major business components of online shopping companies in the logistics & distribution. Storing your products in warehouses and timely availability for sale is important. Hence, the logistics and distribution of the sold goods to the customer on a timely basis is essential. So, choosing the right warehouse and distribution network is the key to succeed in the online shopping space.

3. Website & Mobile Application

To expand the market base and gain more audience, a robust website with detailed product listing, simple layout, easy checkout process must be developed. Also, since the mobile penetration is at an all-time high, a mobile app for e-commerce shopping is a must-have.

How Aurion will help you?

We will select the ideal company formation package for you. Get expert consultation on obtaining the right e-commerce company formation package with choosing the right business jurisdiction, business activities, office type, supporting services, etc.

Set up your dream e-commerce company in the most hassle-free way! Avail exclusive discounts on our Ecommerce + General Trading License Combo Package, talk to our expert business consultants to know more!


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AURION Provides Assistance in

dafza
SAIF Zone
ifza
shams
dmcc
Dubai South
DIFC
jafza
Rak Media City
RAKICC
UAQ Freezone
Hamriyah Freezone
Kizad Freezone
ADAFZ
Abudhabi Freezone
Ajman Freezone
AMCFZ
RAKEZ
Sharjah RTI Park
Sharjah publishing city Freezone