Dubai has set its focus on growing an e-commerce center. Many people thought to start their business from home on social media. They want to sell online their products like clothes, handmade accessories, and digital marketing services. If you want to know how to get an e-commerce license in Dubai to increase your online business. Then, below we mentioned the entire process of getting an e-trader license that will surely help you to understand the procedure. This license will help you with all alternatives of function effectively on social media and set up your business brand.
The market of e-commerce business is growing globally, the UAE rapidly adapting to changes in online technology that has drastically altered the way the consumers shop for the products. improvement in the E-commerce field has brought about growth in distinct industries because this technology is utilized by all business fields across the globe.
Whether you are shopping for personal business or expenditure by internet, doing shopping online is now a huge portion of our daily lives. This case is going to grow even a lot in the coming years with the rise of e-commerce businesses that are taking immediate advantage of the increasing numerous online shoppers today. The demand is increasing for an e-commerce license in Dubai.
What is an E-commerce License in Dubai
E-commerce license in Dubai was begun by the DED (Department of Economic Development) in the Year 2017 and its key purpose is to encourage people to carry out business on social media. The e-trader license permits the companies to present their products and services on social media which will also permit them to easily sell their products.
One of the benefits of online business is, there is no middleman to present the services and products to the end-user, this is a direct business. It would help and permits you to receive a better price for the end-user. In addition, by e-trader license that is online, both the parties – the end-user and businessmen can easily communicate regarding services and products. It would enhance the confidence of clients to do shopping on online sites and buy through it.
There are also certain benefits of online trading. This the times when fake items are trading by online or on social media. Department of Economic Development also regulates the regulations for online trading by social media such as Facebook, and others.
The Process for Getting an E-commerce License in Dubai
You require to go through the steps to get an E-commerce license in Dubai are given below:
- Decide a Legal Structure for Your Business : The first step for getting an e-commerce license in Dubai is you need to decide your business’s legal structure. Simply, whether it establish a Limited Liability Company, parent company branch, one person company, a representative office, and more. Branch offices and LLC formation are very casual in Dubai because they come with a seamless benefit.
- Choose a Location : The location here doesn’t mean the area where you would establish an office or a shop, but the region where you wish to obtain your license. There are two types of locations in Dubai namely: Mainland and Free zone. A free zone permits you to have 100% company ownership. In the case of the mainland, you require to have a UAE local sponsor that owns at least 51% of the company, and the rest will be your share. Both the fields have their pros and cons. You need to consider all necessary aspects and decide where you wish to establish your online business.
- Register a Trade Name : Since your business has no require any physical office, select a name that the people would easily remember. The business name may be used as your region name hence the people can find easily the name of your company. Ensure that your region doesn’t resemble another existing company as this can lead to legal complexities.
- Apply for a License : Once you decided on the location, now you need to apply for your e-commerce license in Dubai. The license will be issued by the Department of Economic Development; hence this is vital to contact them first. If you want to install within a free zone, a license has to be obtained from the respective free zone authorities. The kind of license issued is based on the nature of your business.
Once all the necessary steps are completed, you require to get the confirmation for the e-commerce license within 5 to 10 minutes.
Advantages of Getting an E-commerce License in Dubai
The benefits of obtaining an e-commerce license in Dubai are:
- Autonomy to repatriate capital and income
- No currency restrictions
- 100% foreign ownership in the free zones
- 0% corporate and personal tax
- Low operating costs
- No import duties on e-commerce license
- Resident visa granted for three years
If you think, you are ready to take the plunge and move your small business to the cloud, then an e-commerce business can be a great option to consider. We at Start Any Business can help you to obtain an e-commerce business license in Dubai as well as guide you during the procedure.
Also read, How to Get an E-trader License in Dubai