If you’re considering setting up an eCommerce business in the UAE, you must register your trade name.
This can be done for free if you’re a citizen of the UAE, and it will take about two days. After claiming your trade name, you need to fill out forms from the Department of Economic Development in Dubai, following Small Marketing Tips can help you to make the process easy.
They’ll ask for basic information about your business and the plan you’re presenting. While filling out the forms, be careful to provide accurate information about your legal structure.
E-commerce In Dubai
There’s no denying that e-commerce is booming in the UAE. There are 2 online marketplaces in the top 10 list, and the country’s social knowledge is strong, with numerous social media platforms and good connectivity.
While economic uncertainty and lack of trust in online payments have limited the growth of e-commerce in the UAE, the value of the market is expected to grow at a rapid rate over the next few years.
The market is ripe for start-ups, and business regulations make it easy to establish a company.
One of the biggest perks of establishing e-commerce in Dubai is the ease of setting up a business.
There are no physical office requirements, so you can focus on the marketing side of things.
In addition to the perks of being located in a free zone, Dubai offers non-free zones and mainland zones.
Free zones provide the benefits of zero corporate tax and income tax, and negligible custom duties, while mainland zones are conducive to international businesses.
Business Models In E-commerce Industry
The business model that will work best for your business depends on the nature of the market.
In Dubai, for example, B2C is a popular model because there are few barriers to entry.
This model uses an online intermediary to connect buyers and sellers, while advertising-based B2C focuses on building an audience through content marketing and community-based sites.
Using an advertising-based model can be a good choice because it can be used to attract more customers.
When starting an e-commerce business in Dubai, it’s important to determine the company structure. E-commerce businesses should be registered as either a Limited Liability Company or a Free Zone Company.
Consulting a business setup partner can help you choose the right company structure.
Alternatively, you can register your company in the mainland or a free zone, depending on your goals. In either case, it’s crucial to select the right company structure.
Costs of E-commerce licenses in Dubai
The cost of an e-commerce license in Dubai depends on several factors. These factors include the size of your business, the total investment required, and which zone you want to operate in.
Most people prefer to set up their online business in a free zone, which has the lowest cost of establishing a business in Dubai.
The cost of a business license in Dubai can vary anywhere from AED 15,000 to AED 50,000.
To establish an e-commerce business in Dubai, the first step is to apply for a business license.
There are several types of licenses available, so make sure to compare prices before deciding which is best for your business.
For example, if you plan to sell consumer goods or services in Dubai, you should apply for a free zone e-commerce license.
This license allows you to register a wide range of businesses on social media, without the need to rent a physical space.
Free Zones For E-commerce Businesses in Dubai
With more than 40 free zones in the MENA region, Dubai has become the center of e-commerce.
Dubai CommerCity, a dedicated e-commerce free zone, is the first of its kind in the region. Located on 2.1 million square feet, the free zone provides a unique ecosystem for online retailers.
Developed by the Dubai Airport Free Zone Authority and property firm Wasl, CommerCity is a strategic investment for the UAE economy.
The registration process for e-commerce licenses in UAE is relatively simple. The cost of a license is AED 8,000, and it does not require an upfront share capital or a physical location.
It is possible to set up a business with more than one shareholder and receive a 100% customs tax exemption.
A license is not required for a single-man operation, but multiple companies can be registered with the same entity.