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How To Start A Online Business In Dubai

The appropriate accessibility of internet facility, additionally to the rising usage of smartphones, has assisted drive the development of the e-commerce industry. These days shopping online for clothes, furniture, and other accessories is a trend. In today’s world, the e-commerce sector is developing worldwide. The e-commerce segment is gradually replacing traditional stores. Online businesses are hugely famous across the world. The online marketplace is incredibly lucrative, with a massive number of consumers buying online every day. In Dubai, there are many benefits to starting an online business. If you are planning to start an online business and wondering how to start an online business in Dubai, then there is no need to worry as here we mention the complete details to set up an e-commerce business in Dubai.

The developing effect of e-commerce has been ease by individuals becoming more vulnerable to using the internet all across the globe, the accessibility on internet and gadgets everywhere, and the continuous growth in internet tools and courier services. Dubai, being the pioneer in anything new, opens its gates to all kinds of online businesses. You can do services, trading, education, or even cyber sports team registered in Dubai.

In Dubai, integrating an e-commerce company is easy; however, you cannot refuse the laws and regulations. Dubai officials do not permit any arbitrary individual to launch an e-commerce store and start selling products. To start an online business in Dubai, you have to apply for an e-commerce license.

Steps To Start A Online Business In Dubai

The procedure of starting an online business in Dubai has been structured with simplicity in mind. Each and every business in Dubai begins with getting a trading license for the kind of services or products you wish to produce and trade in the area. This is also happening in the case of setting up an e-commerce business. The method of registering any business and getting a license for it varies on the kind of business, the types of trading you want to set up, and the free zone you are choosing for in the region.

This is the easiest and fastest to get a general trading license and e-commerce trading license in Dubai. It is issued by the Department of Economic Development (DED) in Dubai. If you do not have a license for your business, then it is not regarded as legal.

1. Select The Type Of Company

Select The Type Of Company

The first step is to select the type of company. There are numerous option available here. You can register a branch of a foreign parent company, a representative office, a limited liability company, and many more. As per your plan and perspective access to other markets, one or another choice will be optimal. In Dubai, the most common type of companies are a limited company and a subsidiary because they have a vital set of benefits.

2. Choose A Location

Choose A Location

Here the location does not mean the place where you will set up an office or shop; however, the place signifies where you wish to obtain your license. There are a number of free trade zones in Dubai itself, and additionally, there are some in other emirates of UAE. Dubai provides two choices; the first is a set up a business in the free zone, and the second one is set up a business outsides the free zones. If you plan to manage a business in the region, then registering a company outside the free zones is the finest solution. In free zones, it is not allowed to trade outside the free zones; however, the costs are lower.

3. Register A Trade Name

Register A Trade Name

It is an essential step to choose the name of the online store as this name should be memorable. When registering, you will require numerous alternatives in case the name is already used. The trade name can be used as our domain name so that people can easily find your company name.

4. Apply For License

Apply For License

You have 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 vital to approach them first. If you are looking to set your company within a free zone, the license will have to be obtained from the suitable free zone authorities. The kind of license issued varies upon the nature of your online business.

5. Apply For Initial Approval Certificate

Apply For Initial Approval Certificate

To start your e-commerce business in Dubai, an Initial Approval Certificate is a NOC from the authority. The initial approval certificate will be valid for 6 months, and it is not renewable. When submitting your trade name approval application, you can apply for an initial approval certificate at the same time.

6. Draft A Memorandum Of Association (MOA)

Draft A Memorandum Of Association (MOA)

With the sponsor/partner, you also need to draft a Memorandum of Association (MOA) and submit it to the Department of Economic Development (DED). You have to follow these steps if you choose the location of your company on the mainland.

7. Register Office Space In Dubai

Register Office Space In Dubai

It is also a vital step to set up an online business in Dubai. However, an online store has no premises; as a traditional store, there should be a legal address because the authorities in Dubai have made it compulsory for a company to have an office to regard it as a legal entity.

8. Opening A Corporate Bank Account

Opening A Corporate Bank Account

When you have applied for an e-commerce trade license and start your business, you will be capable of setting up your corporate bank account. All the companies require a bank account, so you will require to open it.

Advantages Of E-commerce Business In Dubai

  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. There are no restrictions on the withdrawal of capital and no currency restrictions
  4. Determining expenses are lower than in other jurisdiction.
  5. No import and export duties with e-commerce license
  6. The possibility of getting a resident visa of the United Arab Emirates (UAE) for three years with the possibility of renewal.

Also read, How To Start Business In Dubai For Indian

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