SETTING UP AN E-COMMERCE COMPANY IN DUBAI
In Dubai, setting up an e-commerce business typically requires obtaining specific licenses and permits to operate legally. The licensing process may vary based on the type of e-commerce business, whether it’s a local or international entity, and the nature of products or services being sold. Here are some general steps and considerations:
Determine Your Business Activity:
- Decide on the nature of your e-commerce business, whether it involves selling products, services, or both. This will impact the type of license you need. Choose a Business Entity: Decide on the legal structure of your business. Options include setting up as a free zone entity, mainland company, or establishing an offshore company. Select a Free Zone or Mainland:
- Free zones offer various benefits, such as 100% foreign ownership, tax exemptions, and simplified import/export procedures. Free zones allow multiple media activities with E-Commerce in one business license such as you may combine Website & Social Media Development, Interior Design, Computer Programming, Fashion Design, etc. related activities. Whereas, Mainland companies or Investors can simply establish a trade license with 100% Foreign Ownership for example Cosmetics Trading, Rice Trading, Chemicals Trading, General Trading & have broader market access online and locally. A Mainland Company can by default re-sell/sell their products or services online.
- Documents Required:
- Chosen Activities,
- 3-5 Preferred Trade names for the company,
- Legal structure of the company – Shareholder/s % & Share Capital,
- A Valid Passport Copy,
- A Valid Visit Visa, Residency or Cancellation paper (if on cancellation). Trade Name Registration:
- Register your business name with the Department of Economic Development (DED) or the respective free zone authority respectively. Apply for the E-commerce License:
- Apply for the specific e-commerce license through the relevant authority or Department of Economic Development. Different free zones might have specific e-commerce licenses tailored to online business activities. The Cheapest E-Commerce License starts from AED 5,750/- in Sharjah Free zone. Compliance with Regulations:
- Ensure compliance with local regulations, including tax laws, consumer rights, data protection, and other relevant regulations. Obtain Necessary Permits and Approvals:
- Depending on the nature of your products or services, you might need additional permits or approvals from relevant government departments (e.g., Dubai Municipality or Ministry of Health & Prevention (MOHAP) for certain consumer goods). For Import and Export of the goods and local distribution, you must obtain an Import & Export Code (IEC) from Dubai Customs for smooth operations.
- Another significant step to run a smooth E-commerce Business in Dubai is to register your company with VAT at the Federal Tax Authority (FTA) right after your Business Bank Account is completed. Secure a Payment Gateway:
- Set up a payment gateway to facilitate online transactions securely with the help of your associated UAE Local Bank. Physical Presence Requirements:
- Some licenses may have requirements for physical office/warehouse/storage space, so consider this aspect when planning your business setup. Visa and Labor Permits: If you plan to have employees, you’ll need to secure their work visas and labor permits.
- It’s crucial to consult with a business setup consultant or legal advisor specializing in Dubai’s regulations and business setup procedures. Our Advisors can provide tailored guidance based on your specific business needs, ensuring compliance with all legal requirements.
To Enquire more or For FREE CONSULTATION, contact us now!