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Benefits Of Setting Up An Online Business In UAE

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Nowadays, the online business sector is developing worldwide. The online segment is gradually replacing traditional stores. The UAE is the explorer in anything new opens its gates to all kinds of e-businesse. You can do trading, services, education, or even cyber sports team registered in the UAE. There are many benefits of setting up an online business in UAE. Dubai officials do not allow any arbitrary individual to launch an e-business store and start selling products. To set up an e-business in UAE, you have to apply for an e-business license.

The United Arab Emirates (UAE) having the most advanced e-business market in the entire MENA region. E-business is facilitated by the wide spreading of the Internet, the availability of gadgets for every individual, and the continuous growth of international courier services. In UAE every business starts with getting a trading license for the type of services or goods you want to produce and trade in the region. The same in the case of setting up an e-business.

If you want to set up an online business in Dubai and other emirates of the United Arab Emirates (UAE), you have to apply for an e-business license. The e-business license is issued by the Department of Economic Development (DED) in Dubai. If you do not have a business license, then your e-business does not consider legal. Set up an online business in Dubai is easy and smooth; although, you cannot flout the laws and guidance when doing so.

The e-business marketplace is amazingly profitable, with a massive number of consumers buying online every day. There are several benefits to setting an e- business in Dubai and other emirates of the United Arab Emirates (UAE). E-business is supported hugely by the logistics and support system. Without a consistent logistics plan, any e-business can come to a stop. In the United Arab Emirates (UAE) you can either opt for a third-party logistics support partner, or you can create your logistics. 

Here Are The Benefits Of Setting Up An Online Business In UAE

The United Arab Emirates (UAE) is blessed with remarkable positions in the region. Offering several business chances to business owners for setting up an e-business in UAE. The UAE has smooth and easy access to the markets of three continents not to mention it also has several free zones making it a prime spot to set up an online business.

There are many benefits to starting an online business in the UAE. For those who are want to start an online business in Dubai, it is possible to start, and advantage of the minimal bureaucracy and 0 % tax rate provide here when running your business from anywhere in the globe. Online shopping or the e-business segments replacing the traditional shopping culture, which was strolling in stores. Amid a plethora of benefits of e-business most essential one is an online store is cheaper than the conventional store as to set up an online store all you require is a website domain, good internet access, and a laptop. An online store has a broad audience not limited to a specific region.

  1. There are no taxes and fees (Except for VAT of 5 %)
  2. The possibility of 100% ownership of an oversea company in one of the free zones
  3. Operating expenses are lower than in other jurisdiction
  4. There are no restrictions on the withdrawal of capital and no currency restrictions
  5. No import and export duties with e-business license
  6. The possibility of getting a resident visa of the United Arab Emirates (UAE) for three years with the possibility of renewal.

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Steps To Start An Online Business In UAE

1. Choose The Type Of Company

To start an online business in UAE the first and foremost step is to select the type of company. There are many options available here. 

2. Select A Location

Choose a location is also an essential step to start an online business in the UAE. Here the location does not signify the place where you will set up an office or shop; although, the place means where you wish to obtain your license.

3. Register A Trade Name

Opting for the name of the online store is a vital step because this name should be memorable. When registering you will need to offer many alternatives in case the name is already used.

4. Apply For License

The next step is to apply for an e-commerce license after determining the location. The e-commerce license is issued by the Department of Economic Development (DED), so it is crucial to approach them first.

5. Apply For Initial Approval Certificate

After this step, apply for an Initial Approval Certificate, it’s a NOC from the authority. The initial approval certificate will be legitimate for six months, and it is not sustainable.

6. Draft A Memorandum Of Association (MOA)

With the local sponsor, you also require to draft an MOA and submit it to the DED.

7. Register Office Space In Dubai

Although, an online store has no premises like a traditional store, there should be a legal address because the authorities in the UAE have made it mandatory.

8. Opening A Corporate Bank Account

Any company needs a bank account, so you will require to open it. Local banks provide several opportunities for opening an account comprising for offshore companies.

Also read, How To Start A Online Business In Dubai

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Apporva Chaudhary

A knowledgeable and active member of the business community in the UAE and advises large multinationals as well as startups on how to best establish a commercial presence in the UAE.

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