E-commerce License In UAE
An e-commerce license in UAE is highly sought after. This is because, due to its ease, many consumers in the UAE are switching from traditional to online purchasing. As a result of this transition, entrepreneurs, business owners, and dealers are considering starting an e-commerce business in Dubai. An e-commerce license is all you need to start with your company activities in Dubai.
Dubai’s market is as lucrative as any other. The UAE’s e-commerce industry is anticipated to be worth $10 billion by the end of 2018. (Dh36.7 billion). However, if you want to start an ecommerce business in Dubai, you must go through a series of steps, starting with deciding on a website style and ending with obtaining your e trader license granted.
Steps To Obtain An E-commerce License In UAE
Choose a legal structure for your company.
The first stage in obtaining an e-commerce license in UAE is to determine your company’s legal structure. To put it differently, deciding whether to organize an LLC, a one-person firm, a subsidiary of a parent corporation, a representative branch, and so on.
Select a Location
The location refers to the location from whence you will obtain your license, not the site where you will open a shop or office. Dubai is divided into two zones: the Free Zone and the Mainland.
Make a Trade Name Registration
People will be able to readily find your firm online if you utilize the trade name as your domain name. Make sure your website address doesn’t sound too similar to another company’s, as this might result in legal complications.
Submit an Application for a License
After you’ve decided on a location, you’ll need to get an e-commerce license in UAE. Because this license is issued by the Department of Economic Development, it is critical to contact them first. For a corporation based on the mainland, the DED charges roughly AED 10,000 for trade name registration, first approval, and license issue. If you want to open a business in a free zone, you must first obtain a license from the applicable free zone authorities. The type of license you will receive is determined by the nature of your internet business.
Request a Certificate of Initial Approval
An Initial Approval Certificate is a letter of authorization from the Dubai government to open an e-commerce business. It’s only good for six months and can’t be extended. An initial approval certificate can be requested when filing a registered trademark approval application.
Make a Memorandum of Understanding (MOU) and a Local Service Agent Agreement (LSA).
You must draft and submit a Memorandum of Association (MOA) with the sponsor to the DED.
Open a Physical Office in Dubai
The next step would be to establish a physical presence in Dubai since Dubai officials have made it mandatory for a company to have a real presence to be perceived as a legal organization.
Final Approval of License
You will receive a business license within 1-7 days after completing all of the aforementioned steps, depending on the government.
Establishing a Business Bank Account
You will be able to open a corporate bank account once you have successfully applied for an e trader license in Dubai and established your business.
Advantages Of Obtaining An E-Commerce License In UAE
Anyone seeking the perfect business landscape to build their business empire can consider getting an e-commerce license in UAE. E-commerce is a prolific industry in the region, with an estimated value of $9.2 billion by 2026. Benefits that e-commerce businesses can reap include the following:
- You can run a business with complete ownership while enjoying tax exemptions at Free Zones.
- The possibilities of online businesses like e-retail, e-marketplace, and more could be chosen for running your e-commerce business.
- You can build your e-commerce business with a minimum number of steps in application and documentation, along with less cost.
- The acquisition of visas for your employees and yourself is easier.
- The UAE offers you the best ecosystem that incorporates the most advanced infrastructure and amenities for logistics and digital services.
Types Of E-Commerce Licenses In UAE
You should have an e-commerce license to build your online business in the UAE. Different types of e-commerce licenses that come from their competent authorities should be obtained to run your business in this sector. What kind of license you need for the business primarily depends on the type of activities you plan to do in e-commerce. Following are the types of e-commerce licenses that you can acquire in the UAE.
E-Trader license
You can get an E-Trader license to sell products or services online if you are trying to get a more affordable license that allows you to run the business without a physical store or office.
Virtual company license
Dubai is the right business location for anyone, including foreign investors and entrepreneurs. Anyone with a virtual company license can conduct online business in the UAE without a physical presence in the region.
Portal license
A portal license will be required for you to operate online platforms to facilitate trade transactions between buyers and sellers. Foreign entrepreneurs are also eligible to get portal licenses in the UAE.
Steps To Obtain An E-Commerce License In UAE
Choose a legal structure for your company.
The first stage in obtaining an e-commerce license in Dubai is to determine your company’s legal structure. To put it differently, deciding whether to organize an LLC, a one-person firm, a subsidiary of a parent corporation, a representative branch, and so on.
Select a Location
The location refers to the location from whence you will obtain your license, not the site where you will open a shop or office. Dubai is divided into two zones: the Free Zone and the Mainland.
Make a Trade Name Registration
People will be able to readily find your firm online if you utilize the trade name as your domain name. Make sure your website address doesn’t sound too similar to another company’s, as this might result in legal complications.
Submit an Application for a License
After you’ve decided on a location, you’ll need to get an e-commerce license in UAE. Because this license is issued by the Department of Economic Development, it is critical to contact them first. For a corporation based on the mainland, the DED charges roughly AED 10,000 for trade name registration, first approval, and license issue. If you want to open a business in a free zone, you must first obtain a license from the applicable freezone authorities. The type of license you will receive is determined by the nature of your internet business.
Request a Certificate of Initial Approval
An Initial Approval Certificate is a letter of authorization from the Dubai government to open an e-commerce business. It’s only good for six months and can’t be extended. An initial approval certificate can be requested when filing a registered trademark approval application.
Make a Memorandum of Understanding (MOU) and a Local Service Agent Agreement (LSA).
You must draft and submit a Memorandum of Association (MOA) with the sponsor to the DED.
Open a Physical Office in Dubai
The next step would be to establish a physical presence in Dubai since Dubai officials have made it mandatory for a company to have a real presence to be perceived as a legal organization.
Final Approval of License
You will receive a business license within 1-7 days after completing all of the aforementioned steps, depending on the government.
Establishing a Business Bank Account
You will be able to open a corporate bank account once you have successfully applied for an e trader license in Dubai and established your business.
Cost of E-Commerce Licenses in UAE
The type of e-commerce business you are about to run in the UAE is a major factor that affects the cost you pay for the license. Service-based e-commerce licenses are less expensive compared to retail e-commerce licenses. The license cost will be lower if the business is the sole establishment of an individual compared to public joint-stock e-commerce companies. E-trader licenses are the basic and inexpensive e-commerce licenses that are limited to UAE and GCC nationals. Foreigners are only eligible to get other types of licenses that are more expensive than e-trader licenses.
Why Choose "Selim Corporate Services"?
“Selim Corporate Services” is your perfect partner if you are planning to start your e-commerce business in the UAE. We can make the licensing process for your business flawless and effortless by taking care of all legal and technical requirements. All the PRO services, along with getting the right type of license, will be done by Selim Corporate experts with complete transparency.
Our team can provide advice and support on the best market practices and the best e-commerce license in UAE for your business. You will get the license approved quickly while you take care of the core activities of your business. For that, we work with our broad network of government authorities and legal connections to make your business dreams come true. Our Team Support .
FAQ
The timeframe to obtain an e-commerce license in Dubai typically ranges from 1 to 7 days, depending on various factors such as government processing times, completion of required documents, and compliance with regulations. Working with experienced partners like Damaar can expedite this process and ensure a smooth licensing journey.
Obtaining an e-commerce license in Dubai is crucial because it allows entrepreneurs to tap into the booming online market in the UAE, where consumers are increasingly shifting towards online shopping. It grants legal permission to conduct e-commerce activities and sets the foundation for a successful online business.
Yes, it is important to ensure that the chosen trade name is unique and does not resemble any existing company’s name to avoid legal complications.
Depending on the completion of all necessary steps and government processes, businesses can expect to receive their e-commerce license within 1-7 days.
A maximum of 50 shareholders are allowed to be listed on an e-commerce license in the UAE.