E-COMMERCE LICENSE

An ecommerce license is a legal permit that enables individuals or companies to operate ecommerce activities in a specific jurisdiction, typically a country or region. In Dubai, an ecommerce license is required for businesses that exclusively trade through digital channels. If a business has physical inventory but does not sell in person or at a physical location, an ecommerce license may still be required. If a business needs to sell in retail outlets or showrooms, a trading license can be applied alongside an ecommerce license. The requirements and procedures for obtaining an ecommerce license in Dubai vary.

What is E-commerce?

E-commerce or e business simply means making money online: selling goods or services via the Internet.

E-commerce business includes literally anything you can imagine starting from online grocery stores ending with private jet booking.

E-commerce is expanding rapidly over the world, especially in the UAE. The UAE's e-commerce business has never been stronger, thanks to the pandemic, which drove populations online and permanently transformed consumer behaviour.

According to the International Trade Administration, e-commerce sales in the UAE increased by 53% in 2020. Almost 100% of the UAE's population is now online.So it's no surprise that intelligent business owners like you are looking to the UAE to launch a successful e-commerce venture. However, before you open your e-commerce business in the UAE, you must first obtain the appropriate UAE or Dubai license - specifically, an e-commerce license.

Advantages of Starting an E-commerce Business in Dubai, UAE

As one of the Middle East and North Africa's fastest-growing e-commerce marketplaces, it's clear to understand why so many entrepreneurs are deciding to build their e-commerce businesses in the UAE.

To begin, although many governments place limitations on foreign firms, the UAE offers a number of tax benefits and tax holidays, as well as a cheap Dubai free zone licensing cost, that make starting a business in the area easier and more profitable, including:

No personal income tax
No capital gains tax
No withholding tax
0% VAT rate also applies to product and services exports.

The region is also largely considered as one of the world's top infrastructure investment locations. This implies that business owners may take advantage of a variety of perks, including:

High-quality manufacturing facilities and warehousing
The center for marine activities and transportation offers a range of office spaces.
An extensive road network connects the UAE with neighboring Oman and Saudi Arabia.
A global aviation center with seven international airports and two major international carriers.
The fastest broadband in the world, supporting more than 93% of homes.

There are three ways to sell products or services online in the UAE

A combination of the aforementioned methods is the most successful approach to sell online in the UAE. The majority of online trade enterprises in the UAE make advantage of every available internet channel.

MARKET PLACE

Sell on a marketplace. Spend less on advertising and receive assured views for your stuff. Pay a commission to the marketplace and deliver things promptly.

OWN A WEBSITE

Create your own website and sell via it. Marketplaces do not receive commissions, but advertising expenditures are greater. It is also your responsibility to handle logistics.

SOCIAL MEDIA MARKETING

Sell using social media. Reach out to your target audience and regions.

To effectively engage with your brand, it's crucial to understand your target audience, their interests, age, gender, location, and income level.

Types of E-commerce License in Dubai

There are several options available to the UAE for licensing internet businesses. These vary depending on the kind of online store you want to run.

Portal license

In the UAE, your business activity is called Portal or E-marketplace, acting as an intermediary between buyers and sellers. Similar to Amazon.com, Portal is available in most free zones for similar activities.

E-commerce license

E-commerce setup refers to companies selling their products through their own websites, ranging from small websites selling a few products to large online retailers like Mumzworld.com.

Commercial or Service license

Your license doesn't prohibit you from selling products or services online, as long as you conduct any business activity, such as educational training, marketing consultations, or selling food or clothes online.

E-trader license

E-trader license in Dubai is ideal for individuals or companies conducting e-commerce activities solely from home or without a physical store. It is the most basic and cost-effective e-commerce license option.

Online payment for shopping on e-commerce platforms

Corporate 1948 Is Where Your E-Commerce Adventure Begins

Dubai's e-commerce industry is thriving, making obtaining an e-commerce license a strategic step towards potential opportunities. Corporate 1948 offers comprehensive support, guiding entrepreneurs through the licensing process and beyond. Their team of experts provides knowledge, resources, and assistance to establish a successful e-commerce business in the UAE.

Which e-commerce platforms allow you to sell your products?

The most common form of internet commerce in Dubai is the marketplace sales model. The following is a list of UAE-based online retailers where you can launch your business:

Which content management system (CMS) or e-commerce website can I use to create my own online store?

Establishing an online store in Dubai is the first step towards starting your own online venture. The simplest method is to use online shopping portals like:

shopify
code brew
wix
godaddy

By using them, you'll be able to launch your e-commerce website more quickly and save time and effort.

Which payment method or gateway should I use in the UAE?

It goes without saying that a payment gateway on your website is necessary to allow card payments from users. A handful of online payment companies in the United Arab Emirates are welcoming to new companies:

Additionally, PayPal UAE and the cash on delivery option are available for payments, which is always a good place to start.

Stripe UAE is the most well-liked and simple to set up service.

Remember that every UAE payment gateway provider deducts a commission from every transaction. Generally speaking, it ranges from 2% to 3.1% based on the kind of goods and sales volume. A few of them also charge for subscriptions.

Prepare the following collection of documents for the setup of your online payment gateway:

License and memorandum of agreement for company incorporation
Personal records: Emirates ID, residency permit, and passport
Proof of address: a recent utility bill and a corporate bank account in the United Arab Emirates

Dubai-based e-commerce delivery service?

Delivery service is a key component that keeps Dubai's internet businesses operating. In the UAE, the majority of online retailers use a third party for pickup and delivery services.

Here are a few adaptable and reasonably priced delivery options available in the UAE:

ARAMEX
ZAJEL
DHL
UPS

The majority of delivery service providers in the UAE offer packages that are not only local but also regional and international. You also receive user-friendly apps and dedicated managers to help you track and manage your shipments.