An e-commerce license in Dubai is in great demand. This is due to the fact that more and more residents of the Arab Emirates are switching from traditional shopping to online shopping because of their convenience. This shift has made entrepreneurs, business owners, as well as traders think about setting up an e-commerce business in Dubai.
Investors enjoy full repatriation of profits, several tax benefits, and availability of information technology resources. This simplifies the launch of your digital enterprise in the region and allows you to get a significant income at the very beginning.
An entrepreneur who has decided to launch an e-commerce business needs to go through several stages.
How do I get e-commerce licenses?
The principles of creating and managing an online business in Dubai can be tedious and confusing. Even before you set up your products or services for sale on the website, you need to get permission to trade.
To get an e-commerce license in Dubai, you need to do the following:
- choose the legal structure of the organization;
- choose a place for business;
- register the trade name of the company;
- apply for a business permit;
- get a certificate initial approval;
- prepare a draft agreement between the Ministry of Internal Affairs and a local service agent;
- rent an office;
- register with ports and customs authorities (in case of import/export);
- get a license from the Department of Economic Development (DER);
- open a corporate bank account.
The cost of a trade permit
Depends on whether you will only sell or take up production, for example, computer programming. But there are a number of common costs. The most common include:
- DER registration fees;
- office rental;
- sponsorship payment for a local partner from the UAE;
- investor visa payment;
- immigration card payment;
- payment of the company’s seal;
- investor’s expenses for medical care and Emirates ID;
- fees for a foreign name (if any);
- medical insurance.
You can get an e-commerce license in Dubai for just 14,500 dirhams UAE.
Types of e-commerce licenses
Dubai offers basically three types of licenses:
Electronic trader
This type of permit is suitable for those who want to sell goods or services online. The activities of online traders are controlled by the Department of Economic Development. A permit for it is issued only for one owner who is a citizen of the UAE or the Persian Gulf countries living in Dubai. This type of permit does not give the right to have an office space or open a store.
To the portal
It can be obtained by persons who are not citizens of the UAE. With this document, you can start an online business as an intermediary between buyers and sellers. It is suitable for a website with a list of products, services or bookings. The cost of the portal license depends on the business requirements. If you apply to open a business in the zone for local companies, the price will be about 12,000 dirhams UAE.
Virtual Company
The virtual company license was launched by Dubai Economy and gives the right to foreign investors and non-residents of the UAE to carry out trade activities in the region. However, this license is limited to only three sectors – computer programming and related activities, design services related to printing and advertising.
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