ecommerce license cost dubai

E-commerce License Cost in the UAE and How to Obtain One

Online shopping is a growing worldwide trend that has affected business for companies and markets. It has become a booming business lately in the UAE. Most of its population is expats with limited time for carrying out daily tasks such as shopping and moving around the cities for various reasons. Thus, e-commerce has biome a huge part in conducting business in the UAE, and it is expected even to grow further. There is a growing demand already for the e-commerce license in the UAE, proving this trend. With the rise of startups and technology savvy consumers in the UAE, acquiring e-commerce to expand or launch a business seems inevitable.

 

 

Steps of acquiring e-commerce license in the UAE 

There are a few steps to take for obtaining the e-commerce license in the UAE, and the process is very straightforward: 

  1. Selecting the business location: depending on the selected region, the corresponding free zone authorities will issue the e-commerce license. 
  2. Determining the legal business form: there are various legal business forms to operate under an e-commerce license. For selecting the e-commerce license that suits best the nature of the intended business, it is necessary to determine the legal business form before applying for the license. The most common legal forms are a sole establishment, LLC, civil company, branch, or representative office.   
  3. Registering the trade name: there are terms and regulations for assigning a trade name to a business. After selecting a proper name for the trade that meets the set criteria and checking its availability, an initial approval is issued by the free zone authorities.

 

Required documents to apply for an e-commerce license

The required documents to apply for an e-commerce license are as follows: 

  • Passport or visa copies of the shareholders
  • Passport or emirate ID of sponsors or local partners 
  • Local service agreement or civil works agreement
  • NOC from the relevant authority
  • Draft of an MOA approved by all the shareholders 

 

All these documents with the Tenancy Contract and Ejari should be submitted to the corresponding authorities for final approval.


Tips to start an e-commerce business in Dubai

Dubai’s favorable business and economic conditions make it one of the most favorable places for starting an e-commerce business now. Obtaining a suitable trade license is a must for starting an e-commerce business in Dubai. After obtaining this license, here are some tips for a head start into the e-commerce business:

  • Choosing the right jurisdiction: as explained above, the right jurisdiction (free zone or mainland) can boost the selected business significantly with their specific advantages. A mainland license allows entrepreneurs to trade or sell their products and services directly to the local market. A free zone license requires teaming up with a local distributor instead. These business opportunities or limitations can influence business significantly and should be considered carefully before applying for the trade license.  
  • Developing and launching a professional website: a well-developed website that is easy to navigate and facilitates accessing the information regarding an e-commerce business that clients will get involved in can be the heart of every e-commerce business. A well-developed website showcases the products, business partners, expertise, and skills of the business team. It can be the most effective platform for engaging the customers and interacting with them constantly. The effort and time spent on developing a website are thus worth it, as they can bring in more profit and boost business prospects. The most important factors that need to be ensured are user-friendliness, web maintenance, secure hosting, and mobile usability.
  • Online payment gateways: it is no secret that e-shopping is remodeling the business everywhere around the globe these days and has become an inseparable part of most up and running businesses. If a business involves selling products or trading of any kind, offering secured payment gateways on the website can ease the payment and marketing processes. Among many methods, credit card payments and pre-paid card systems are the most convenient ways for transacting trades and e-shopping. For many purposes, cash-on-delivery (COD) has proved to be very handy in various situations. 
  • Securing storage houses, logistics, delivery: if an e-commerce business involves selling physical products, warehousing and securing logistics should be legalized before starting the business. Warehousing for storing the goods is a mandatory factor of running a business involved in selling products. The selected jurisdiction where the trade license is issued also influences the warehousing limitations and rules. Setting up the proper logistics for delivering the items should also be ensured. In this case, a third-party logistics or building one can be opted for.
  • Marketing the business: targeting the right clients and markets and adopting a suitable marketing strategy are the two main factors that make an e-commerce business successful. Taking into consideration the needs and desires of the clients in this regard becomes exceptionally important and decisive.

 

E-Commerce License Cost

An e-commerce license can cost between AED 5,750 with a SHAMS Free Zone license to AED 30,000-AED50,000 with Dubai DED license. This will be depending on your business’ business activities, legal structure, jurisdiction and more.

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