How to start an eCommerce business in Dubai?

How to start an eCommerce business in Dubai? : The advent of internet technologies has seen a major shift from showroom retail stores to online mobile shopping in Dubai. Recent studies show that nearly 60 percent of Dubai residents make online purchases of large cash volume on a regular basis.

The UAE government is all set for the development of purpose-built duty-free e-commerce hubs. UPS, Economic Zones World (EZW), Dubai Customs, MasterCard, Aramex, du, Dubai Trade, ENBD are the main participants of such schemes.

Starting an eCommerce business – the process

Establishing an eCommerce company in Dubai is easy, but you have to adhere to the laws and regulations of Dubai while doing so.

Step 1: Decide on a legal structure for your business

You should decide first whether to set up a one-person company, branch of a foreign company, representative office or a Limited Liability Company (LLC).

Step 2: Choose a location

The location you choose can be a Free Zone or the Mainland. A free zone allows you 100% ownership whereas in a mainland company, you need to have a local sponsor with at least 51% ownership in the company.

Step 3: Register a trade name

As the business does not have any physical presence, it is better to choose a unique name that people will easily remember. It can be your domain name as well.

Step 4: Apply for a license

For an eCommerce mainland company, you have to apply to the Department of Economic Development (DED). If it is a free zone eCommerce business, the eCommerce license in Dubai will be issued by the relevant free zone authorities.

Step 5: Apply for an initial approval certificate

Apply for an Initial Approval Certificate (valid for 6 months, and not renewable) right when you submit the trade name approval application.

Step 6: Draft a MOA and local service agent agreement

A Memorandum of Association (MOA) needs to be drafted with the sponsor and submit it to the DED.

Step 7: Register a physical office in Dubai

Authorities in Dubai have made it mandatory that a company should have an office to consider it a legal entity. Hence rent or buy office premises.

Step 8: Final Approval of the license

After you complete all the above steps; you will get a business license within 1-7 days, depending on the authority.

Step 9: Import/Export requirements

Register your business with one of the ports and customs authorities to get your importer’s code. UAE imposes 5% customs duty on imported goods. The companies under the free zone will not have import duty.

Step 10: Opening a corporate bank account

After you have established your business, you will be able to set up your corporate bank account in UAE.

After following these steps, you will get eCommerce License in Dubai & can start your eCommerce business in Dubai.

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Originally posted 2021-09-29 06:46:19.